IHTM20011 - Introduction to Life Policies: What
a Life Policy is
A life policy is a contract between an insurance company and the
assured which provides for the payment of benefits on the
occurrence of events associated with the life of one or more
individuals. Death is the most obvious example of such an event.
The form of the policy or contract varies from one insurance
company to another. Usually it consists of one or more of the
following:
-
the policy schedule - which gives basic
information such as the date of the policy, the name(s) of the
assured and life assured and so on
-
general provisions - which are standard (often
pre-printed) clauses applying to all policies of the type in
question and setting out the rights and obligations of the assured
and the insurance company, for example when the policy can be
surrendered
-
special provisions - which are additional clauses
applying only to the particular policy
-
endorsements - which contain further provisions
applying only to the particular policy and which often record
amendments which were made to the policy after it was issued.
