Many residents consider Florida life insurance to be the main element of their existence. For people who are the sole breadwinners of their families, the idea of obtaining coverage is a welcoming one. They live in the fear that should they die suddenly, those who depend on them will not have adequate resources that will be able to sustain them. This type of cover is different from other types of policies. However, this is governed by a number of principles.
The first principle is the insurable interest. This states that an individual can only insure the life of someone he has interest in. He can insure his life and that of the family members who he depends on. It is impossible to cover the life of the neighbor since his death does not spell financial loss on that person. A person can also insure his debtors because their death will mean that the fund they owe him will no longer be payable.
Utmost good faith is also another principle in this cover policy. It is stipulated in this principle that one should give all the information that he knows will be relevant as far as the policy is concerned. Included in such information will be things such as medical history of the insurer and any inheritable diseases present in that family. This information is essential in calculating the premiums.
Proximate cause is also a principle in this type of cover. In this principle, the dependents of the insured can only seek compensation once the insured dies of causes that had been articulated in the policy. This implies that should the person who is insured die of drowning, and the cover taken was against death by illnesses, the company will not be held liable.
The mitigation of loss is also another principle of insurance. This states that a person should exercise utmost care to reduce the risk he is insured against. An individual insured against death by car accident can have his policy cancelled in case the company establishes that he was involved in reckless driving as soon as he obtained the cover policy.
Compensation to the beneficiaries is usually not made until there is sufficient proof of death to the providers. This proof can be given in form of death certificate. This is normally obtained from death registrar. The principle behind all this is referred to as the proof of death.
There is quite a difference between life assurance and other ordinary forms of cover policies. With this type of cover, the risk insured against, which is usually death, is expected to happen at one point or another. Nevertheless, in ordinary forms of policy covers, the risks insured against could or could not happen.
After deciding to obtain a Florida life insurance policy, a person should make sure that he goes to the right policy provider. Some companies are known to be reluctant in making compensation even when a claim was genuine. One of the easiest ways to know the best company to work with is to ask friends, neighbors and colleagues.
The first principle is the insurable interest. This states that an individual can only insure the life of someone he has interest in. He can insure his life and that of the family members who he depends on. It is impossible to cover the life of the neighbor since his death does not spell financial loss on that person. A person can also insure his debtors because their death will mean that the fund they owe him will no longer be payable.
Utmost good faith is also another principle in this cover policy. It is stipulated in this principle that one should give all the information that he knows will be relevant as far as the policy is concerned. Included in such information will be things such as medical history of the insurer and any inheritable diseases present in that family. This information is essential in calculating the premiums.
Proximate cause is also a principle in this type of cover. In this principle, the dependents of the insured can only seek compensation once the insured dies of causes that had been articulated in the policy. This implies that should the person who is insured die of drowning, and the cover taken was against death by illnesses, the company will not be held liable.
The mitigation of loss is also another principle of insurance. This states that a person should exercise utmost care to reduce the risk he is insured against. An individual insured against death by car accident can have his policy cancelled in case the company establishes that he was involved in reckless driving as soon as he obtained the cover policy.
Compensation to the beneficiaries is usually not made until there is sufficient proof of death to the providers. This proof can be given in form of death certificate. This is normally obtained from death registrar. The principle behind all this is referred to as the proof of death.
There is quite a difference between life assurance and other ordinary forms of cover policies. With this type of cover, the risk insured against, which is usually death, is expected to happen at one point or another. Nevertheless, in ordinary forms of policy covers, the risks insured against could or could not happen.
After deciding to obtain a Florida life insurance policy, a person should make sure that he goes to the right policy provider. Some companies are known to be reluctant in making compensation even when a claim was genuine. One of the easiest ways to know the best company to work with is to ask friends, neighbors and colleagues.
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