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the second important clause found in every life insurance policy. As its name implies, the consideration clause deals largely. with the consideration paid by the policyowner for life insurance protection-. -the premium. identifies the fact that the policyowner must pay something of value. for the insurer's promise to pay benefits. This valuable consideration is the. premium.
What is a deductible? How does a deductible affect insurance? A deductible is the amount of money that the policy holder will pay before the insurance company will pay on an insured loss. With a deductible, you are responsible for paying a certain amount before the insurance company will pay the rest of the insured amount. 2. What is risk classification? Risk classification is the assessment and categorization of the characteristics that influence a person's risk of loss. 3. What are riders? How do they affect insurance?