Right now, insurance terms are more popular in India, people is searching more about which Insurance is best, Life, Health and pension plans. So here are some more words which are common and used in Insurance sector.
Accident Benefit
In this user may get additional benefit which is equal to sum assured in installment or permanent total disability.
Age Limits
This is the minimum and maximum age limit of the user that below and above which the request form is not accepted.
Agent
He/she is the insurance company representative licenced by state who negotiates and provide service to the policyholder for the insurer.
Annuity Plans
This plan provide for a pension to be paid to the policy holder or his spouse, in event of death of both of them.
Application Form
Is a five to six page document provided by the insurance company and usually filled by the agent and medical examiner having all the basic information of the customer. This document is signed by the applicant.
Assignment
A method by which the policy holder can person on his interest to another person. An assignment can be made by an endorsement on the policy document or as a separate deed.
Beneficiary
The person(s) or entity(ies) (e.g. corporation, trust, etc.) named in the policy as the recipient of insurance proceeds upon the death of the insured.
Business Insurance
A policy which primarily provides coverage of benefits to a business as contrasted to an individual. It is issued to indemnify a business for the loss of services of a key employee or a partner who becomes disabled.
Coverage
The scope of protection provided under a contract of insurance; any of several risks covered by a policy.
Days Of Grace
Policy holders are expected to apy premium on due dates. a period is 15-30 days is allowed as grace to make payment of premium; such period is days of grace.
Deferment Period
Period between the date of subscription to an insurance-cum-pension policy and the time at which the first installment of pension is received. Such policies generally prescribe a minimum and maximum limit on the deferment period.
Depreciation
A decrease in the value of property over a period of time due to wear and tear or obsolescence. Depreciation is used to determine the actual cash value of property at time of loss.
Double/Triple Cover Plans
These offer to the beneficiaries double/triple the sum assured on death of life assured during the term of the policy. On survival to the date of maturity, the basic sum assured is paid to the assured. These are low-premium plans, most useful for situations such as housing.
Family Insurance
A life insurance policy providing insurance on all or several family members in one contract, generally whole life insurance on the principal breadwinner and small amounts of term insurance on the other spouse and children, including those born after the policy is issued.
Lapsed Policy
A policy which has terminated and is no longer in force due to non-payment of the premium due.
Loyalty Additions
The loyalty addition is given upon the maturity of the policy, and not before. It’s a small percentage of the sum assured. Broadly speaking, loyalty addition is the difference between the performance, of the insurance company and the guaranteed additions. It is LICs effort to further share its surplus after valuation with the policy holders, as LIC is a non-profit organization.
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