Aditya Birla Sun Life Insurance Company Limited

Insurability

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Definition:

Characteristics of the risk (object or individual) that favours its acceptance in insurance is called insurability.

Description:

Insurability of an object or any individual depends on norms and policies of the insurance company. There are different factors that are taken into account while evaluating the insurability like the risk profile, life expectancy, injury or accident possibility, pre-existing illness, etc.

If the insurance company realises that there is a high possibility of loss, the risk is said to be uninsurable. The insurance company can reject the policy outrightly. Accepting the poor risks can directly affect the profitability of the insurance company.

Example:

Ashok wanted to purchase a term life insurance policy. He declared with the insurance company that he consumed alcohol daily and smoked 10 cigarettes a day. The insurer reviewed his proposal and thought that Ashok has poor insurability. The risk of insuring Ashok was high as the probability of claim was high.

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ABSLI Salaried Term Plan

Exclusively For Salaried Individuals

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4 Plan Options

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Life Cover upto 70 years

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Optional Accelerated Critical Illness benefit

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Inbuilt Terminal Illness Benefit

Life Cover
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Recently Added Article

ABSLI Salaried Term Plan (UIN:109N141V02) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
*LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Annual Premium: ₹ 6100/- ( which is ₹ 508.33/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
ADV/5/22-23/291