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Definition: Proposal form is the most important and basic document required for life insurance contract between the insured and insurance company. It includes the insured's fundamental information like address, age, name, education, occupation etc. It also includes the person's medical history. Description: A life insurance company offers a policy on the basis of a proposal form. The form is the most basic requirement for the functioning of the life insurance contract between you and the life insurance company. It needs to be completed by the proposer who may seek the assistance of a life insurance advisor to fill it up. A proposal form seeks basic information of the proposer and the life assured. This includes the name, age, address, education and employment details of the proposer. The proposal form also gathers information on the medical history of the life to be assured. There are questions pertaining to the health status of family members of the life to be assured. The proposer and the life to be assured have to mention their incomes in the proposal form to satisfy the insurer about their ability to pay for the insurance and the need for insurance, respectively. Proposal form helps the insurance company to calculate all the potential risks in relation to the insurance policy and hence deciding the premium amount. Also See: Insurance, Guaranteed Survival Benefit, Guaranteed Surrender Value, Insurability
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What best describes the consideration clause in a life insurance policy?Answer: Consideration is the value given in exchange for a contractual promise. In a life insurance policy, the consideration clause states that the policyowner's consideration consists of completing the application and paying the initial premium.
What is the consideration given by an insurer in the consideration clause of a life policy quizlet?What is the consideration given by an insurer in the Consideration clause of a life policy? Consideration is given by the insurer by promising to pay a death benefit to a named beneficiary.
What is consideration in a life insurance policy?Consideration. This is the premium or the future premiums that you have to pay to your insurance company. For insurers, consideration also refers to the money paid out to you should you file an insurance claim.
What is the consideration given by an insurer in the consideration?The insurer's consideration is their promise to provide coverage in return for the premium paid. If the insured has a loss, the insurer agrees to provide coverage for the loss.
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