A policy which primarily provides coverage of benefits to a business as contrasted to an individual. It is issued to indemnify a business for the loss of services of a key employee or a partner who becomes disabled. Cancelable A contract of health insurance that may be cancelled during the policy term by the insurer or insured. Such policies generally prescribe a minimum and maximum limit on the deferment period. Depreciation A decrease in the value of property over a period of time due to wear and tear or obsolescence.
Depreciation is used to determine the actual cash value of property at time of loss.
On survival to the date of maturity, the basic sum assured is paid to the assured. These are low-premium plans, most useful for situations such as housing. The assured has to pay an annual premium which is determined on the basis of the assured's age at entry and the term of the policy. The insured amount is payable either at the end of specified number of years or upon the death of the insured person, whichever is earlier. Exclusions Specific conditions or circumstances for which the policy will not provide benefits.