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1. The Essential Elements of Life Insurance or
2. The Necessary Elements of Legal Life Insurance
We know that life insurance is the one of the most popular insurance policies. It is the assurance against life.
Generally, we are human being who live on this beautiful earth. In the different time frame of our life, One may fall in danger by which a person may die. Life insurance gives financial assurance of our family so that such threat may overcome.
Such insurance follow some policies by which its transparency can be achieved. These elements of life insurance make it clear to both the insurance taker and insurance holder.
The essential elements of a life insurance contract are discussed below:
1 General Components of a Contract:
Life insurance contract also have to be some general mandatory rules like other contracts such as the proposal by one party to the other party.
Acceptance of an offer, permission or consent, voluntary consent, recompense must be in the life insurance contract.
2. Content of Contract:
The content of a life insurance contract must be life. This life must be the life of the insured person or his relatives or it could be the life of someone else who has the insurable interest.
3. Insurable Interest:
Actually life is the subject of life insurance. If the financial interest does not exist in the content of insurance, the insurance content will not get validity.
Financial interest must be exist over the own life and life insurance could be done in case of where the insurable interest exists.
So it can be said that wife, son or daughter or someone else has the financial interest and for this reason it is assumed that there is an insurable interest.
4. The Ultimate Belief:
Full faith is one of the key elements in life insurance contract as like as other insurance contract. Both parties provide accurate information at the time of executing the agreement.
Under any circumstances anything can not be hidden to other party.
No false description can be given and specially insured need to be revealed clearly everything about life.
5. Terms:
Life insurance contract also have a number of written and unwritten condition like marine and fire insurance. These terms work as the base of a contract. These are known as the elements of a contract.
Conditions can be tow types as expressed or unexpressed and both types of terms and conditions are equally important.
At the concluded point, we can say that it is not possible to build or edit or execute a life insurance without the above elements. This is why these elements are called the essential elements of a life insurance contract.
