Forums » Life Insurance

• T Ghosh

  

  • 144 posts
   

  February 28, 2014 7:04 AM IST

  • Insurance plays a major role in transferring the risk.
  • The most common way for individuals, families, and businesses to transfer is to purchase insurance coverage.
  • When an insurance company agrees to provide a person or a business with insurance coverage, the insurer issues an insurance policy.

   

    Policy:

   

            The policy is a written document that contains the terms of the agreement between the

  insurance company and the owner of the policy.

   

    Policy Benefit:

   

            The agreement is a legally enforceable contract under which the insurance company

  agrees to pay a certain amount of money known as the policy benefit or policy proceeds.

   

    Premium:

   

            When a specific loss occurs provided that the insurer has received a specified amount of

  money, called the premium.

   

  In general, individuals and businesses can purchase insurance policies