Explain briefly whole life insurance.

1.	Explain briefly whole life insurance.
Answer» Whole life insurance: A life insurance policy in which the insuree pays a periodic premium for the policy whole life is called whole life insurance. After the insuree dies his heir gets the pre-decided sum mentioned in the insurance agreement as compensation from the insurance company. Life is priceless and no amount can ever compensation its loss but to save the heirs or say family members from financial loss and burden one takes life insurance. The insurance company decides how much insurance can a person buy based on his income and premium paying capacity and then decides the premium the insuree needs to pay. Unlike other insurances, the principle of indemnity cannot be applied in life insurance in the event of death of the insuree. When the insurance company gets satisfied that the death of insure took place naturally i.e. he did not commit suicide or something, the insurance company pays the full amount as per the contract to the heir.

Answer»

Whole life insurance:

A life insurance policy in which the insuree pays a periodic premium for the policy whole life is called whole life insurance. After the insuree dies his heir gets the pre-decided sum mentioned in the insurance agreement as compensation from the insurance company.
Life is priceless and no amount can ever compensation its loss but to save the heirs or say family members from financial loss and burden one takes life insurance.
The insurance company decides how much insurance can a person buy based on his income and premium paying capacity and then decides the premium the insuree needs to pay.
Unlike other insurances, the principle of indemnity cannot be applied in life insurance in the event of death of the insuree.
When the insurance company gets satisfied that the death of insure took place naturally i.e. he did not commit suicide or something, the insurance company pays the full amount as per the contract to the heir.

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