Life insurance

Basis of Difference
Life Insurance
Fire Insurance
Marine Insurance
Insurable interest.
It is a legal requirement. The insured must have an insurable interest in the life insured at the time of taking the policy and at the time of death of the insured.
The insurable interest is to exist in the goods to be insured both at the time of taking the policy and at the time of loss of subject matter.
There must be an insurable interest at the time of loss. It is not necessary to have insurable interest at the time of taking the
policy.
Compensation
In case of death of the insured person, the loss cannot be compensated. However the insured amount is paid to his nominee.
In fire insurance, the actual loss is compensated.
The actual total loss is compensated
Surrender of policy
The insured person can give up or surrender the policy before its maturity. The insurance company pays the surrender value to the insured person,
The policy cannot be surrendered as premium has been made.
The policy cannot be given up.
Payment ov premium
The payment of premium is made instalments.
The payment is made in one instalment only.
The payment is made in lump sum amount.
Loss
Life insurance is for total loss.
Partial loss can be paid.
Actual loss is paid. It may be partial or total.
Credit facilities.
The insured can raise a loan on
the security of life insurance policy
It cannot be used as security for bank loa.
The policy cannot be used as security for loan.