What is life insurance

Which type of life insurance policy is taken by two or more persons jointly?

The Joint life term insurance policy gives coverage to two people. The premium is paid by both the insured pears for the fixed period, and the pay-out is on a first death basis. In case one of the policyholders dies, the sum assured is paid to the other policyholder.

What type of life policy covers 2 lives and pays the face amount after the first one dies? A policy that promises to pay the face amount on the death of first of 2 lives covered by the policy is called a Joint Life Policy .

While there are advantages to joint life insurance, you might prefer to get two individual policies . That way, if you split up, you won't need to get new cover, and in the unhappy event you both die, your beneficiaries will get two pay-outs.

The purpose of the joint life policy is to reduce the financial burden on the firm at the time of payment of a large sum to the legal representative of the deceased partner . The insurer receives the payout when after the death of his insure partner.

What is the benefit of joint life insurance?

Joint life insurance provides that protection for two people under one policy , which can be more cost effective in certain cases. However, joint life insurance carries the risk of leaving the surviving party uninsured if the other dies.

However, a joint life policy pays out only once, leaving the surviving partner without cover under that policy, whereas single life insurance policies can offer more protection because each partner has individual cover .Jul 8, 2020

Insured is the person who is covered against risk. On the other hand, the insurer is the company that is providing coverage . It is a service that an insurer provides under a particular insurance policy against a premium paid by the policyholder.

In the insurance world, a policyholder — which you may also see written as “policy holder” (with a space) — is the person who owns the insurance policy . As a policyholder, you are the one who purchased the policy and can make adjustments to it. Policyholders are also responsible for making sure their premiums get paid.Feb 5, 2021

Is insured and policyholder same?

2) The insured is the person whose life is being covered against the risk under the policy . 3) The insurer is the insurance company that provides the insurance cover. 4) The proposer is the person who takes the cover and is also called the policyholder.

The Joint life term insurance policy gives coverage to two people . The premium is paid by both the insured pears for the fixed period, and the pay-out is on a first death basis. In case one of the policyholders dies, the sum assured is paid to the other policyholder.

the person, group, or organization whose life or property is covered by aninsurance policy .