Can proposer and insured be different?

The proposer and the insured are often the same individual. In some cases they can be different, as long as insurable interest can be established. For example, a husband can purchase a policy for his wife.

Can policy holder and life assured be different?

Life assured is the insured person. Life assured may or may not be the policyholder. For instance, a husband buys a life insurance plan for his wife. As the wife is a homemaker, husband pays the premium, thus the husband is the policyholder, and wife is the life assured.

Who has the right to receive the amount insured in the event of death of the insured?

In this case, the bank becomes the policy owner whereas the original policyholder continues to be the life assured on whose death the bank or the policy owner is entitled to receive the insurance money. This earlier meant that the original nominee would automatically stand cancelled upon assignment.

Who is paid the sum assured in life assurance?

A sum assured is a fixed amount that is paid to the nominee of the plan in the unfortunate event of the policyholder’s demise. The insurance company pays this money as per the sum chosen by you at the time of purchasing the policy.

What is the difference between life assured and proposer?

He is an individual whose life is insured by the insurer and upon whose death; the nominee or the beneficiary receives the sum assured. If he takes the policy on the life of any other family member say his son under a child plan, then he is a proposer & his son is the life assured.

What is the difference between life insured and proposer?

1) An insurance policy is a contract between the insurer and the insured. 2) The insured is the person whose life is being covered against the risk under the policy. 4) The proposer is the person who takes the cover and is also called the policyholder.

Can grand father get tax benefit as proposer and life assured to his grandson?

Can a grandfather get the tax benefit u/s 80c for the insurance premium paid for his grandson.? No! As per provisions of section 80C of the Income Tax Act, 1961, Deduction of Insurance Premium Paid to an Individual is allowed ONLY IF the Policy is taken for his own life, life of the spouse or any children.

Who are the persons entitled to payment and settlement of claim amount?

Definition: In life insurance, the beneficiary is the person or entity entitled to receive the claim amount and other benefits upon the death of the benefactor or on the maturity of the policy.

What is the meaning of life assured?

Life assurance = An agreement between a life assurance company and a policyholder; in return for a payment (premium) from the policyholder, the company commits to pay someone or something (the beneficiary) upon the death of the person whose life is being covered (the life assured).

Who is life assured in insurance?

Definition: Life assured or insured is the person(s) whose life is covered in the insurance contract. Description: In the event of a contingency, the insured can claim the amount or in the event of the death of the assured, the nominee will receive the insurance amount.

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