Consideration Clause Life Insurance at Life

Consideration Clause Life Insurance. If a person wants to continue to have the option of this consideration, then they can buy a policy and pay. (the consideration clause of a life or health policy includes the schedule and amount of premium payments.)

Even though insurance companies are expected to honor any and. Some consideration clauses include penalty clauses if one party fails to meet their requirements. A consideration is an exchange of money for the guarantee of an act preformed or another benefit provided.

PPT Topic 10. Legal Principles in Insurance Contracts

The payment of the face amount of the policy is payable at the end of such preselected period. Basics of a consideration clause. The payment of the face amount of the policy is payable at the end of such preselected period. The consideration clause states that a policyowner must pay a premium in exchange for the insurer’s promise to pay benefits.