Often the question arises in our minds, how the heck meaning or definition of the Life Insurance?
Life Insurance is a legal agreement between the insurance company with parties who use the insurance. Parties using this insurance are the people who have the same risk and agreed to appoint an insurance company to cover the risks that can arise at any time in their lives. The agreement with the insurance company is called Life Insurance Contracts.
And, the physical form of the contract (printed form) which serves as proof of an agreement between the Insurer (insurer) - in this case the insurance company and the insured (insured) - in this case is the parties who use the insurance, called the Insurance Policy.
Through this agreement, the insured / policyholder pays a sum of money called a premium at regular intervals to another party, called the Insurer (Insurance Company), the amount as stated in the Contract of the Life Insurance.
Instead, the Insurer (Insurance Company), agreed to pay a sum of money or provide services when the events are covered (eg accident, illness or death) arise during the term of the policy.
Object Life Insurance
Then what is the object or what the insured / collateral in this life insurance?
People who are still alive and healthy is the object of a life insurance policy, or commonly referred to as the insured party (insured).
For life insurance policies, the parties will receive payments from the death of the insured person (insured) is the recipient / heir (beneficiary) is determined solely by the insured person (insured).
Usually the life insurance heirs designated in the agreement between the Insured and the Insurer are immediate family members of the insured. But for certain products owned by the insurer, the insured person can also at the same time as the recipient / heir (beneficiary).
For example, Product A will refund the premiums paid to the Insurer if the insured is still alive after pertanggunggan period has ended. For example, the Insured past the age of 70 years while the period of coverage is only insured up to the age of 70 years, then he is entitled to receive all the premiums have been paid to the Insurer. Of course conditions and the type of insurance product can be different depending on what products are owned by the Insurer and taken by the Insured.