Life insurance is a contract where an insurer agrees to pay a designated beneficiary a sum of money upon the death of the insured. Key features include the payment of regular premiums by the policyholder and a lump sum payment to beneficiaries. The process involves filling out an application, providing proof of age and medical examination, and acceptance by the insurer. Life insurance provides financial protection for dependents and encourages savings. It has an economic nature by providing for a family's needs and a legal nature as defined by law. Characteristics include insurable interest of beneficiaries and utmost good faith of both parties.

1. Life Insurance : Concept, nature
& use of Life Insurance,
distinguishing characteristics
of Life Insurance contracts
)

2. Content
Meaning
Features
Procedure
Advantage
Nature
Use of Life insurance
Characteristic of Life insurance
contract

3. Meaning of Life Insurance
 Life insurance is a contract to a certain
sum of money on the death of a person
in consideration of the certain annuity for
his life calculated according to the
probable duration of life.
A life insurance is a contract in which
one party agrees to pay a given sum of
money upon the happening of a
particular event contingent upon the
duration of human life in consideration of
immediate payment of smaller sum.

4. Features of life insurance
 Outcome of a contract
 Payment of premium
 Payment of sum assured
 Insurable interest
 Financial help
 Encourages saving

5. Procedure of Life Insurance
 Filling of proposal
 Proof of age
 Medical examination
 Agents report
 Acceptance of proposal

6. ADVANTAGE OF LIFE
INSURANCE
 Covers risk of death
 Encouragement of compulsory saving
 Facilitation of liquidity
 Provision of profitability
 Tax relief
 Mental peace

7. Nature
Economic nature of life
insurance
Legal nature life
insurance

8. Economic nature life
insurance
There are the following factors need for
insurance:
 The family need of food, shelter and
clothing are meet out of the current
income of the bread income
 The current income of everybody depend
upon the earning the make
 A person may reach an age when he
cannot earn due to old age, disability etc.
 The insured saving will help in meeting
the necessities and other needs.

9. Legal nature life insurance
As per life insurance act, life insurance
is the business of effecting contracts
of insurance upon human life,
including any contract whereby the
payment of money is insured on death
or the happening of any contingent,
dependent on human life and shall be
deemed to include:
Granting of annuilities on human life
Granting of compensation on the
happening of specified contingencies.

10. Use of Life Insurance
 Provides protection for family
 Encourages saving
 Provides channel for investment
 Elimination dependency
 Helps in capital formation

11. Characteristics of Life insurance
Contract
1. Nature of general insurance
2. Insurable interest
3. Utmost good faith
4. Warranties
5. Proximate cause
6. Assignment and nomination
7. Return of premium
8. Other feature

12. 1. Nature of general insurance
2. Insurable interest
3. Utmost good faith

13. 1. Warranties
2. Proximate cause
3. Assignment and nomination

14. 1. Return of premium
2. Other feature

15. Disadvantages of Life
Insurance
 Disadvantage of Life Insurance arises
when it is used as an investment
product.
 Buying Life insurance when you have
no need
 Buying complex life insurance
products like ULIPs, Endowment,
Child Plans etc. which give sub
optimal results.
 Buying Expensive Policies.

16. CONCLUSION