Nature of the policy: Life insurance is acknowledged as an investment, and it is not a contract of indemnity
Policy Period: Long-term
Cost of the policy: Depends upon the amount of sum assured offered by the insurance policy
What is the difference between life insurance and non-life insurance?
Non-life insurance policies offer financial protection to a person for health issues or losses due to damage to an asset. Life insurance protects against life risks where the insured individual is promised by the insurance company for uncertainties and ambiguities of life-related to death.
What is non-life insurance meaning?
Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.
What do you mean by life insurance?
Noninsurance — the thoughtful and intentional abstention from the use of insurance to cover an exposure to loss; risk identification was thorough, the uninsured risks are known, and insurance has been considered. Uninsured losses are absorbed as a direct expense.