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Explain the following term/concept. Life Insurance - Organisation of Commerce and Management

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Question

Explain the following term/concept.

Life Insurance

Short/Brief Note
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Solution

Life insurance is a contract between insurer and insured whereby the insurer agrees to compensate the insured a certain sum on the expiry of certain period or on death, whichever is earlier. The basic purpose of life insurance policy is to secure the lives of those who are dependent on the insured. The type of life insurance policies are whole life policy, endowment insurance policy, term insurance policy, annuity policy, money-back policy, child insurance, retirement plans and ULIP.

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Chapter 4: Business Services - Explain the following terms/concepts
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