What is the consideration for a life assurance policy contract?

In a life assurance policy contract, the consideration is defined as what each party gives to the other as part of the agreement. The correct answer is the premium, which is the amount of money the policyholder pays to the insurer to maintain coverage under the contract. This payment is crucial because it is what allows the insurer to provide the financial protection or benefits defined in the policy.

The sum assured is the amount that will be paid out upon the occurrence of the specified event (usually the death of the life assured) and is not the consideration for the contract itself. Instead, it is a benefit the policyholder is entitled to upon fulfilling their obligations, such as paying premiums.

The life assured refers to the individual whose life is covered by the insurance policy and does not pertain to the contractual consideration. The term grantee is not typically used in life insurance contracts; rather, it may refer to a party involved in different types of legal agreements or conveyances. Thus, the premium is the essential consideration as it enables the agreement to function.