| Life Insurance
Glossary |
|
A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
L |
M |
N |
O |
P |
Q |
R |
S |
T |
U |
V |
W |
X |
Y |
Z |
|
|
|
|
| Accident
|
| A sudden and unintentional happening leading to a loss. In the context of life insurance, it is a sudden and unforeseen happening that causes disability or death of the policyholder.
|
| Accidental Death Benefit
|
| An add-on benefit in which the benefit is payable in the event of death of the life insured as a result of an accident provided he has opted for this benefit.
|
| Accumulation Period
|
| The time interval between the commencement of the policy and the time when benefits are paid out. It is established by the insured.
|
| Actuary
|
| A professional with expertise in technical aspects of insurance. An actuary is a statistician and mathematician by training.
|
| Actuarial Cost Method
|
| A method that determines contributions that would be made under an insurance plan.
|
| Agent (Life Advisor)
|
| A representative of an insurance company authorized to sell insurance policies.
|
| Age Limits
|
| The maximum and minimum ages above or below which an insurance company will not accept applications for insurance from or will not renew a policy with a person.
|
| Annuitant
|
| The person who will receive annuity benefits at stipulated intervals of time like yearly / half yearly/ quarterly / monthly intervals.
|
| Annuity
|
| The amount paid under an annuity scheme at stipulated intervals like yearly/half yearly/quarterly/monthly intervals.
|
| Annuity Certain
|
| An insurance contract that provides an annuity for a certain number of years, irrespective of whether the insured is alive or dead.
|
| Annuity Consideration
|
| The payment that an annuitant makes for an annuity.
|
| Assignee
Assignee
|
| The person to whom the benefits of the life insurance policy are assigned.
|
| Assignment
|
| A transfer of the rights and benefits of an insurance policy from one person to another.
|
| Authority
|
| The Insurance Regulatory and Development authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999.
|
| Beneficiary
|
| The person who receives the benefit of a policy in case of death during the term or the policyholder who receives the benefit on maturity.
|
| Benefit Period
|
| The time for which an insurance company covers the designated insured or dependents for the benefits.
|
| Bonus
|
| Bonus is the amount added to the basic sum assured under a with-profit life insurance policy.
|
| Buying price
|
| This is the price at which you enter a fund, based on the market value per unit, increased by the relevant trading costs associated with buying the assets.During the term of the plan, your financial requirements could change. And you may want switch between funds. Your units in the fund would be sold at the selling price and other units bought at the buying price as per your instructions.
|
| Claim
|
| A request for payment of the contractual benefits by the insurer that is made by the insured or the beneficiary.
|
| Concealment
|
| When an applicant withholds critical information from the insurance company, it is called concealment. For instance, if the applicant is suffering from a terminal disease and he does not notify the company of this, he is concealing information.
|
| Dating Back
|
| Dating Back or Back Dating is an option that allows the assured to get the benefits of lower age by commencing the policy from a date earlier than the date on which the proposal form was signed. Back Dating is permissible only within the same financial year.
|
| Death Benefit
|
| The benefit received by the beneficiary (ies) on the death of the insured.
|
| Endowment Plan
|
| A plan in which the amount is paid to a policyholder if he outlives the tenure of the contract or to the beneficiary if the insured person dies before the date on which the policy matures.
|
| Free look period
|
| A free look period gives the client an option to review the terms and conditions of the policy within 15 days from the date of receipt of the policy document. Where he disagrees with the terms and conditions stated in the policy, he has the option to return the policy, stating the reasons for objection. In such a case the Policy would then be cancelled and the premium paid by the client would be refunded to him, after deducting: proportionate risk premium for the period on cover, expenses incurred by the Insurance Company on medical examination of the client and stamp duty charges.
|
| Group Life Insurance
|
| Life insurance of a group of people under a policy. This group should already be in existence and should not have come together only for the purpose of insurance.
|
| Human Life Value
|
| The present value of the family's share of the breadwinner's future earnings is considered as Human Life Value, for purposes of life insurance.
|
| IRDA
|
| The acronym for the Insurance Regulatory and Development Authority of India, it is the apex body overseeing the insurance business in India. It protects the interests of the policyholders, regulates, promotes and ensures orderly growth of the insurance industry and for matters connected therewith or incidental thereto.
|
| Lapse
|
| The termination of an insurance policy due to non-payment of premia.
|
| Last Birth Day (l.b.d)
|
| Age at last birthday.
|
| Level Premium Life Insurance
|
| Life insurance for which the premium remains unchanged year after year. |
