LIFE ASSURANCE Meaning and
Definition
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Life assurance, also known as life insurance, refers to a contractual agreement between an individual and an insurance company. It offers financial protection and security to the policyholder's beneficiaries in the event of their death. In exchange for regular premium payments, the insurance company promises to pay a specified lump sum, known as the death benefit, to the designated beneficiaries upon the insured person's demise.
Life assurance primarily aims to provide support and meet the financial needs of the deceased policyholder's loved ones. The death benefit can be utilized to cover various expenses such as funeral costs, outstanding debts, mortgage repayments or other family obligations. This enables the policyholder to ensure the well-being and financial stability of their dependents even after they are no longer present.
The terms and conditions of life assurance policies can vary depending on the policyholder's requirements and the type of plan chosen. Some policies offer a fixed premium amount for a specific period, while others involve adjustable premiums and investment elements. Furthermore, life assurance policies may also incorporate additional benefits such as critical illness coverage, disability coverage, or premium waivers in case of unemployment or disability.
Overall, life assurance serves as a vital financial safety net and a means of leaving a legacy for loved ones. It offers peace of mind to policyholders, providing them with the confidence that their family and dependents will be protected and financially supported even in their absence.
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A certain amount of money payable after death to representatives, secured by a yearly premium paid during the life of the assured.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for LIFE ASSURANCE
- kife assurance
- pife assurance
- oife assurance
- lufe assurance
- ljfe assurance
- lkfe assurance
- lofe assurance
- l9fe assurance
- l8fe assurance
- lide assurance
- lice assurance
- live assurance
- lige assurance
- lite assurance
- lire assurance
- lifw assurance
- lifs assurance
- lifd assurance
- lifr assurance
Etymology of LIFE ASSURANCE
The word "life assurance" can be analyzed by breaking it down into its constituent parts.
- The word "life" comes from the Old English word "līf", which has roots in the Proto-Germanic language. It evolved from the Proto-Indo-European root "leip-", meaning "to remain, persevere, or live".
- The word "assurance" originates from the Old French word "asseürance" and has its roots in the Latin word "assurare", which means to "make sure" or "to secure".
When combined, "life assurance" refers to an agreement or contract that provides assurance or security for one's life or the lives of others. The term is commonly used in the insurance industry to describe policies that offer financial protection in case of death or other defined events.
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