Question

Although a standard life insurance policy does not exist, certain provisions may be required by law. In addition, some optional provisions or modifications may need to be added to the basic policy. Which of the optional provisions do you think should be considered essential by the insurance buyer?

Answer 1

Some necessary provisions are:

1.Misstatement of age: if the age was misstated when applying for the insurance, there should be a provision to change it and the computed premiums.

2. Premium payments periodicity: mostly premiums are paid yearly, but there should be a provision to pay premium on shorter intervals of time, e.g. half yearly, monthly etc.