Characteristics of life insurance contract
(1) Taking human life and health as the subject matter, human life and health are priceless, so there is no provision that the insured amount exceeds the insured value, and there is no double insurance and subrogation. After the accident, the insurance amount of each policy is calculated cumulatively.
(2) Most of them are long-term contracts, especially life insurance, which has nothing to do with debt and has the cash value of the policy. They are investment and savings contracts in nature, and they cannot force the insured to pay premiums through litigation.
(3) the cash value of the policy
Because the accident rate of life insurance is low at the beginning of signing, it will gradually increase in the future. For the sake of balance, the insurance premium is always charged at a stable rate. In this way, at the beginning of the contract, the insurance premium paid will be high, and some of it must be of a savings nature, so it should be refunded when the contract is terminated. This is the cash value of the policy.
The difference between the premium paid and the premium payable is interest = cash value. Life insurance policies can be used for pledge, and life insurance insurers may not demand the insured to pay premiums through litigation.