Life insurance is basically a contract in which an insurer agrees to pay out a specified amount of cash to an insurance covered person, on the demise of that insured person, for an agreed period of time, in return for paying a regular premium. What is life assurance? Life assurance is different from life insurance, in that life assurance does not pay out cash, but guarantees the payment of a certain amount of money upon the death of the insured person to a specified beneficiary. The life assurance contract has both a life indemnity and a benefit agreement, which are part of the insurance contract. These two parts of the life assurance form are separate legal contracts.
Life insurance companies base their rates and premiums on many factors, including the age of the insured, gender, the amount of life expectancy of the insured and whether the insured has dependents. The contract also contains several features that can affect the premium cost of the life insurance plan. For instance, the type of life insurance, or the level of coverage that the insurer chooses, has a large effect on the amount of the life insurance policy premium.
In addition, the amount and duration of payments that the life assurance provider makes to the insured also can have a direct effect on the cost of the premium. In general, the longer the period of payment or the higher the level of payment received by the insured, the more the company will charge the insured.
