The consideration clause of an insurance contract includes the amount of insurance payments that the company must pay to the client in the event of an insured event. Such moment implies not only the death of the client, but may also include the onset of illness, injury or psychological disorders.
Explanation:
Sooner or later, there comes a time in a person’s life when he or she thinks about protecting his or her own financial interests while securing the future of the family. A citizen can achieve this goal by signing a life insurance contract with an insurance company, that includes consideration clause insurance. This document is a guarantee that when an insured event occurs, the insured citizen or his family will receive a certain sum of money.
The life insurance procedure implies concluding a contract with the insurance company and issuing a policy to the insured person. The contents of the agreement between the parties shall specify the conditions under which the policyholder shall be able to receive monetary compensation for the damage caused. Moreover, it is not always only the death of a citizen, but also the temporary disability of a person, an accident or a serious illness are among the insured events.
After concluding the consideration clause in a life insurance contract, a citizen must provide the company with which he concluded the agreement with a certain amount of money. These payments may be made on a regular basis, which are paid in the time agreed upon by the parties, and it is also possible to make a lump sum contribution.
When an insured event occurs which the parties to the life insurance contract have to stipulate at the time of conclusion of the agreement, the company undertakes to provide the person with savings with possible interest at one time. It should also be noted that the policyholder and the insurer may agree that the designated savings will be provided to citizens for a certain period of time or for life.