TYPES OF INSURANCE

1) Life Insurance:

Life insurance is contract between a person and the life insurance company. According to the contract of insurance, a specified sum of money is payable by the life insurance corporation on the death of insured or after the expiry of the policy period. Whichever is earlier subject to the payment of the premium whenever due. The amount of the premium is determined on the basis of the amount of the policy, the period of the policy and periodicity of the premium, whether monthly, quarterly, half-yearly or annually. It provides the financial protection against the risk of early.
According to MN Mishra,"Life insurance contract may be defined as the contract whereby the insurer in consideration of a premium undertakes to pay a certain sum of money either on the death of the insured or on the expiry of the fixed period"
Life insurance is contract in which a particular sum of amount is paid in installment on the basis of age for insuring of the person, with the condition that a nominee or his dependent will receive a particular sum of amount at death or receives himself after fixed period expires"
From the afore mentioned definitions, it is clear that life insurance contract involves two parties. One is insured and other is insurer. The insured has to pay certain amount to the insurer on monthly, half-early or annually as per the agreement as premium. When the period of the policy bought becomes matured or if the insured expires, his dependents or nominees receive the amount. This insurance provides protection to the family at the premature death or gives adequate amount at the old age when earning capacity and reduced.