Definitions Nature

Jurisprudence Law Liability is Valued Policy Investment

Insurance payable on the absolutely
death of a person, or on his certain
surviving a specified Death is certain The value is indemnity for the
period, based on what is beneficiaries loss
or otherwise contingently agreed upon. suffered by being
on the continuance or deprived of the
cessation of life. earnings of the
insured

Accident Insurance
If what is insured is death by , Liability in case of suicide
then may be regarded as a life When Liable When Not liable

insurance. It is not like an
ordinary life insurance, in
1. policy has been in force for a
period of 2
years from the date of its issue
or of its last reinstatement
2. after a shorter period
LIFE
1. The suicide is not by reason
of insanity and is committed
within 2 year period
2. The suicide is by reason of
insanity but is not among the

INSURANCE
provided in the policy risk assumed by
which in this case the cause of although within the 2 year the insurer 
period 3.  the policy was obtained with
death must be a covered peril 3. in the state of insanity the intention to
regardless of the date of commit suicide even in the
not an exempted peril. commission, unless suicide is
an excepted risk
absence of any suicide
exclusion in the policy.

Assignment of policy

With waiver of right Without waiver

to change beneficiary
Cannot be change Can be change even
without consent. without consent

Kinds of life insurance

Ordinary life policy Limited payment life Endowment policy term insurance policy
policy
required to pay certain Payable only at the death Insurer binds himself to It provides coverage only
fixed premium annually of the insured If the pay a fixed sum to the if the insured dies during
or at more frequent insured should die within insured if he survives for a limited period.
intervals throughout his the a specified
entire life and the specified period period, or if he dies
beneficiary is entitled to within such period, to
receive some other person
payment under the policy indicated
only after the death