Property insurance is insurance with property and its related interests as the subject matter. Most property insurance is compensatory insurance. When the property is in danger, the insurer will compensate for the loss within the scope of underwriting responsibility according to the principle of compensation. In life insurance, except some risks of health insurance are compensatory, the vast majority of life insurance is fixed payment insurance, that is, the insurer has agreed with the applicant or the insured in advance to specify the amount of insurance payment in the insurance contract.
Life insurance can not only provide economic security, but also most life insurance has the nature of saving. Because the death of the insured is inevitable, the payment of death insurance money is inevitable. Therefore, most pure premiums directly constitute reserves and are the liabilities of insurers. Personal insurance applies the principle of insurable interest and the principle of utmost good faith, while property insurance also applies the principles of compensation, subrogation, distribution and proximate cause.
The insurance period is longer
The term of property insurance is relatively short, usually 1 year, or it can be the term of a voyage or a project. But in life insurance, the main purpose of the insured is to provide financial security for his family after his premature death, or to provide financial security for himself when he is old. The demand for such protection is long-term, so life insurance contracts are mainly long-term. In the mature insurance market, more than 90% of life insurance business is long-term insurance with a term exceeding 1 year, so life insurance is usually called long-term insurance abroad. Life insurance also includes short-term insurance, such as travel insurance and aviation accident insurance, and its characteristics are similar to property insurance. Because the life insurance contract is a long-term contract, it is often stipulated in the insurance contract that the policy owner has the right to increase or decrease the insurance amount, make a policy loan and restore the effectiveness of the invalid policy.