(a) Outline three features of life assurance. (b) State three benefits each of life assurance to the; (i) individuals (ii) government

(a) Three features of life assurance

1. It is not a contract of indemnity; it pays a fixed, agreed sum on death or maturity because human life cannot be valued in money.
2. The risk insured against (death) is certain to occur, only the time is uncertain, so the contract is bound to give rise to a claim eventually.
3. Insurable interest need only exist at the inception of the policy, and the policy can acquire a surrender value and be used as security for a loan.

(b)(i) Three benefits of life assurance to individuals

1. It provides financial security and support for the family or dependants of the assured on his death.
2. It is a means of saving for retirement and other future needs.
3. The policy can serve as collateral to obtain a loan and can meet obligations such as children's education.

(b)(ii) Three benefits of life assurance to government

1. The premiums pooled by life offices provide long-term funds that government can borrow through bonds to finance development projects.
2. It reduces the burden on government of caring for dependants and the aged, since families are financially protected.
3. The industry generates employment and pays taxes, and mobilises domestic savings that aid national economic growth.