This is the second part of Insurance Terms named as Terminology in Insurance sharing more glossary words of Insurance which are technical words of insurance but to be know to us.
Money Back Policy
In layman language Money Back Policy is where insurer get its money back but as per the Life Insurance Corporation – the policy in which policy holder gets periodic survivance payments during the term of Policy and lumsum amount on surviving it terms. In this the beneficiary gets full sum assured on surviving.
Risk depends on the need for insurance, state of health, personal habits standard of living and income of insured person. Moral hazard is the risk factors that affects the deacesion of the insurance company to accept the risk.
An act by which the policy holders authorises another person to receive the policy moneys. The person so authorised is called Nominee.
The payment, or one of the regular periodic payments, that a policy holder makes to an insurer in exchange for the insurer’s obligation to pay benefits upon the occurrence of the contractually-specified contingency (e.g., death)
Premium Back Term Insurance Plans
These provide for refund of all the premiums paid, in the event of th life assured surviving to the end of the policy term. The total sum assured is paid to the beneficiaries in the event death occurs during the policy term.
Salary Saving Scheme
This scheme provides for payment of premiums by money deduction from the salary of the employees by one employer.
It is the value payable to the policy holder when he/she decided to terminate his/her policy before maturity of the service.
It is the due given back to the policy holder on the survival of the policy under money back insurance.