Life insurance is defined as a contract whereby the insurer in consideration of a premium paid in limp sum or in periodic instalments undertakes to pay a specified sum either on the death of the insured or on the expiry of specified number of years in the policy.
This is most important and popular type of insurance. In life insurance, insurance companies promise to pay a specific sum of money to the insured on the expiry of the period of policy or on the death of the insured. Whichever is earlier, to this nominess. This type of insurance releives the widow of insured and his dependents from the hardship and poverty, if the insured is the bread earner of the family. Health insurance amenities are also covered in Life Insurance.
Sixteen commission agents started the business of life insurance by selling the life insurance policy to William Gibbons in June, 1583. In 1706, Queen Anne premitted to frame such rules of life insurance on the basis of which a certain sum rules of life insurance contribution of other members to the heirs of the member died during the period or duration of membership.
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