In the context of Life insurance, what does the term "adhesion" refer to?

In the context of life insurance, "adhesion" refers to the principle that insurance policies are drafted by one party, typically the insurer, and presented to the other party, the insured, on a take-it-or-leave-it basis. This means that the terms and conditions of the policy are predetermined and not negotiable by the insured. The insured can either accept the terms as they are or decline to purchase the insurance. This characteristic reflects the nature of adhesion contracts in which there is an imbalance in bargaining power, and it underscores the fact that the insurer controls the policy's language and provisions.

This concept highlights that insurance policies are offered with specific, established terms that the client must adhere to if they decide to enter into the contract. Understanding this principle is essential for recognizing the rights and obligations of both parties in an insurance agreement. Policies created through mutual agreement or that include flexible or negotiable terms do not align with the definition of adhesion contracts in the insurance context.