How Does Life Insurance Differ From Other Insurances?

Life insurance is different from other types of insurance
1- Not a contract of identity
Life insurance is not a contract of indemnity. In case of fire or marine insurance, the insured is entitled to claim the actual loss caused to the insured property within the insured amount.
2- Full payment of insured amount
In case of life insurance, if the insured attains the age prescribed in life insurance contract he would be paid the stipulated amount by the company.
3- Future income
Life insurance is the only form of insurance designed to cover the loss of future income as a result of death of the insured.
4- Element of investment
The life insurance undertakes to protect the insured people's family, creditors and others who have insurable interest on the death of the person.
5- Time element
Life insurance policy is insured for longer period of time depending upon the age, healthy and profession of the insured.
6- Surrender value
In the life insurance policy, the insured can give up the policy as and when he desires.
7- Assignment of policy
A fire insurance policy can be assigned to a third party by the insured giving a due notice to the insurance company.