Page 17 - IC23 life insurance application

Those who take life insurance do not gamble because they have planned against the

eventuality of cessation of income while the persons not taking insurance gamble

with the future of their own and of their family.

Let it be mentioned here that life insurance is not a contract of indemnity. It is

limited to the sum assured mentioned in the schedule of the policy bond. However

at the time of taking insurance policy, the economic value of a man’s life is

calculated by estimating the total future income which a man is supposed to

earn till retirement and the insurance need is estimated in that context. The

agent helps in deciding the adequate insurance amount. The insurer, through

financial underwriting ensures that it does not accept too much risk. However

once a sum assured is accepted by the insurer, it is never called into question

at the time of paying the claim. Life insurance is said to be a miracle on

paper and ink because it brings miraculous benefit to the family when it is most

needed.

Copyright Dr Rakesh Agarwal Sashi Publications Private Limited

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010