What Are The Essentials Of Life Insurance Policy?

Essentials of life insurance policy
Insurable interest is a legal requirement in all types of insurance contracts. A person who wants to get his life insured for a specified amount must show his insurable interest at the inception of the policy. In case of life insurance policy a person has insurable interest in his
a) own life
b) his wife
c) his children
d) his business partners
e) if debtor than the creditor has insurable interest in his life Insurable interest
Fraud or misrepresentation
The person desirable of getting a life policy should not conceal any fact about his age, profession disease, etc. both the parties involved in the contract should be honest in their dealings.
Notice of proof of loss
In case of the death of the insured person the person/persons having insurable interest must given immediate notice of the death of the insured to the insurance company.
Death due to war or aviation accident
If the insured person dies in war or any aviation accident, which are excluded perils in life insurer contract, the insurer will not pay the claim.
Principle of indemnity
The life insurance and most health insurance contracts are not subject to the principle of indemnity.