This is a unique business on the lives of human beings. One cannot assign a value to the life of a person. A person cannot be rated or evaluated in terms of money. Yet when one loses his/her near and dear ones, a member of the family, it is going to be a big blow to the economic health of the family. At the same time an insurance company cannot be expected to blindly agree to the contract at an unreasonable sum assured. So the sum assured will be decided by the income, health and paying capacity of the proposer and the life assured. And here enters the principle of good faith. Though death is the only certainty in life, the time and the cause are beyond one's reach. So it is the honest responsibility of the proposer to disclose all the material facts which may affect his life and the premium calculation. If he conceals or misleads on any health or family related information, there is a risk of his claim being repudiated. So one has to be extremely honest in answering the questions in the proposal forms.
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