(a) Outline three features of life assurance.
(b) State three benefits each of life assurance to the;
(i) individuals
(ii) government
Explanation
(a) Features of life insurance:
(i) It is a contract of indemnity.
(ii) Subrogation and contributions are equally not applicable.
(iii) Death may not have anything to do with good health status of the life assured.
(iv) Insurable interest is not needed at policy inception and not required at the same time of claim.
(b) (1) Benefits of life assurance to the individuals:
(i) It helps individuals in life protection.
(ii) It helps in tax relief purpose.
(iii) It helps in disability purpose.
(iv) It serves as a collateral security for loan facilities.
b(ii) Benefits of life assurance to the government:
(i) It helps to create more revenue to the government through taxation.
(ii) It helps to strengthen the society accordingly when there is increase in the number of people who buy life assurance.
(iii) It helps to improve the standard of living.
(iv) It helps to reduce the financial hardship in the society since it serves as a financial support to the family upon the death of their bread winner.
(v) It helps to create employment opportunity.