Simple Definition: Compensation for harm or loss.
More In-Depth: Property and health insurance policies are only in place to cover a loss, but not to improve the insured’s financial situation–they are supposed to be made whole again, but not come out ahead, which is to say they are indemnity policies. However, the life insurance industry will pay on a policy regardless of the insured’s status (or “perceived value”). Life insurance operates as a valued policy. It will pay the face value of the policy, or policies, as a single individual may have multiple life insurance policies.


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