A Look At History, Definition And Nature Of Life Insurance
A Look At History,
Definition And Nature Of Life Insurance
Life
Insurance means insurance on the life of an individual. Life Insurance is
protection given to one person against the damage he may suffer through the
death of another. Life insurance generally consists of the various kinds of
insurances, such as whole-life insurance, term insurance, universal life
insurance, endowment insurance, joint-life insurance, annuity insurance,
marriage endowment insurance, temporary insurance and many more.
Origin
and History of Life Insurance:
Life
Insurance appeared first in England in the sixteenth century. The issuance of the
first insurance policy was in England in 1653 AD to one Richard Martin, a
citizen and council member of London on the life of William Gibbon, a citizen
and Salter of London. In later years, the ordinary life insurance business
extended to accident insurance and further by industrial and technological
advancements, to industrial insurance. America incorporated the first life
insurance corporation in the year 1759
Nature
of Life Insurance:
Life
insurance is in the nature of contingency insurance and it does not provide an
indemnity. One of the effect of life insurance not being a contract of
indemnity is that on the happening of the event insured against, the insurer has
to pay the agreed amount irrespective of whether the assured suffers any loss
or not.
Life insurance comprises any
contract in which one party agrees to pay a pre-set amount upon happening of a particular event
contingent upon the extent of human life, in consideration of the immediate
payment of a smaller sum of certain corresponding
periodical payment by another party.
Essential
Elements of Life Insurance:
To constitute
life insurance, the following ingredients are to be satisfied -
·
It is a two-party
contract.
·
It is a contract dealing
with the life of a human being.
·
There is no
necessity for the contract to provide for the payment, only on the death of the
person.
·
A provision is
made in the contract for payment of a lump sum, in return for periodic payments
of premium,
·
The compensation
of the insured amount is at the termination of an assured period or on the
death of the person (whichever is former).
Object
of Life Insurance:
Proposals
are normally entertained, when the object of the assurance is-
·
Provision for old
age
·
Family protection
·
Protection from
accidents
·
Tax concessions
·
The employers
fulfilling their liability
How do
you select best insurance agent?
The most favorable insurance agent will be one, who will assist you with all your insurance requirements. Your insurance agent should guide you and plan for the risks that you need to be covered. There are Insurance agents in St. Charles, who provide with a variety of insurance policies to choose from, depending upon your needs. They offer insurance policies with final expenses, with simplified as well as guaranteed issue and a universal scheme of life insurance as well. They also offer Medicare supplement plans and retirement plans as well, with guaranteed lifetime income.