Life Assured (Insured)

Definition:

Life assured is the person whose life is protected under the contract of insurance policy. The contract of insurance is valid between the insured and the insurance company.

Description:

In the event of death of the life assured the insurance company will pay the claim to the nominee. There are policies that pay maturity benefits. If the life assured survives the complete policy term, the insurer pays the maturity benefit also.

The life assured pays the premiums against which the insurance company promises to compensate for the loss. A life assured can be the policyholder but a policyholder cannot always be the life assured. Your child may take the life insurance policy for you but he may not get himself insured under the policy.

Example:

Pramod took a term plan from a Life Insurance Company for himself. He was covered for a period of 20 years. Under the term plan, Pramod was the life assured who will be covered. If anything happens to Pramod, the insurance company will pay his nominee the compensation as applicable under the term plan.

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ADV/5/22-23/291