Some Basic Principles of Life Insurance Contract

Life insurance is a contract under which a given insurance premiums (Insurance Company) inconsideration insured's death or a period of time before the expiry of a certain sum of money to pay the charge. In life insurance, guaranteed payments for life insurance policies. The only time the event insured against its happening is not known to occur. So as life insurance is known as "Life,".

Life Insurance's subject matter is human life. Life insurance provides coverage for a person's life at risk. On the death of the individual insurance offers protection against loss of income and compensation policies title holders. Principles of Life Insurance Contract-

Insurable interest
Insurable interest in the insured must be insured. In the absence of insurable interest, the contract of insurance is invalid. Insurable interest in the life insurance contract entered into with the insurance company will be present at the time. It is not necessary that the insurable interest should be assured at maturity.

Utmost good faith 
The life of the contract of insurance is an agreement in good faith. Open and truthful information to the insured and the insurance company should be concealed any material fact, and entering into a contract with the insurance companies. Misrepresentation or concealment of any fact to reject the agreement, the insurer will be entitled to do so if he wants to.

Fulfillment of a contract
 Life insurance contract is not a contract of indemnity . Life insurance is a contract of compensate or lower the loss. You can not compensate the loss of life and only a certain sum of money is given to the death of the insured. So, life insurance indemnity agreement is not a contract. As a result of the death of the insured loss can not be calculated in terms of money.