Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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Death cover: amount paid by the insurer to the nominee / beneficiary on the death of the life insured during the tenure of the policy.
Survival benefit: amount paid by the insurer to the insured on the maturity of the policy.
Sum assured is a pre-agreed amount between the insured and insurer; payable by the insurer on the happening of a specific event.
The premium is based on sum assured and could be paid either as a lump sum payment or could be paid periodically (monthly, quarterly, semi-annually or annually).
Term insurance provides only death cover i.e. the sum assured is paid to the nominee / beneficiary if the insured dies during the tenure of the policy. There is no Maturity / Survival Benefit
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