Life Insurance
Reference: https://thismatter.com/money/insurance/types/life/life-insurance-fundamentals.htm
Reference https://www.iii.org/publications/insurance-handbook/insurance-basics/life-insurance-basics
Reference :https://www.quickquote.com/glossary/#i
Insurance is a means of protection from financial loss. or we can say it is a contract of reimbursement.
It is a form of risk management.
Insured :A person or entity who buys insurance is known as an insured or as a policyholder.
insurer:An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.
Insurance policy:The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured.
Premium : The amount of money charged by the insurer from the insured for the coverage set forth in the insurance policy is called the premium.
Agent: An authorized and licensed representative of an insurance company who sells and services insurance policies. Agents represent the insurance company and typically only sell policies from that company.
Amendment: A formal document which corrects or revises an insurance policy. When authorized by the insurer and the policy owner, the amendment attaches to or becomes part of the policy.
Annuity: A contract sold by a life insurance company that provides fixed or variable payments to an annuitant, either immediately or at a future date.
Annuitize: To begin a series of payments from an annuity. This term also refers to the settlement of a life insurance policy under the contract's annuity options.
Assignment: The transfer of the ownership rights of a life insurance policy from one person to another.
Beneficiary: A person(s) designated by the policy owner to receive the proceeds of an insurance policy upon the death of the insured.
Benefit: For life insurance, it is the amount of money specified in a life insurance contract to be paid to the beneficiary upon the death of the insured. It is commonly referred to as the Death Benefit. For health insurance, it is the amount of money payable by a health plan for the cost of covered services, as defined in the Certificate of Coverage.
Broker: A licensed representative who sells and services insurance policies. Brokers represent their customers and are usually contracted to offer insurance products from several different insurance companies.
Business Life Insurance: Life insurance purchased for business rather than personal purposes.
Claim: Notification to an insurance company that payment of the benefit is due under the terms of the policy.
Commissions: A fee or percentage of premium allowed to a salesperson or agent for services rendered.
Death Benefit: The dollar amount of coverage that is paid to the designated beneficiary(s) of a life insurance policy upon the insured's death.
Endorsement a clause in an insurance policy detailing an exemption from or change in coverage.insurance endorsement may be used to add, delete, exclude or otherwise alter coverage.
Effective Date: The date an insurance policy goes into effect. This is sometimes referred to as the Policy Date.
Electronic Funds Transfer (EFT): An arrangement in which premium payments are drawn from an insured's bank account. This is also referred as Auto-Draft or Pre-Arranged Withdrawal (PAW or PAC).
Exclusions: Specific conditions or circumstances listed in an insurance policy for which the policy will not provide benefit payments.
Group Life Insurance: A life insurance policy issued to a group of people, usually through an employer, union or association.
Insurability: General acceptability by an insurance company of an applicant for insurance based on underwriting review, which may include items such as the applicant's current health status, medical history and driving record among others.
Issue Date: The actual date an insurance policy is issued. This may also be the effective date of the policy.
Mode: The term of premium payments for an insurance policy. Typical modes include monthly, quarterly, semi-annual and annual.
Policy Anniversary: The anniversary of the date of issue as shown in the policy.
Life Insurance: The insurance that covers the risk of the life of the insured is called Life insurance. In this, the nominee will get the policy amount, upon the death of the insurer. This is also called as an Assurance, as the event, i.e. death of the insured is certain. The payment of the policy amount on the maturity will be made in one shot (lump sum) or periodical instalments, i.e. annuity.
Reference https://www.iii.org/publications/insurance-handbook/insurance-basics/life-insurance-basics
Reference :https://www.quickquote.com/glossary/#i
Insurance is a means of protection from financial loss. or we can say it is a contract of reimbursement.
It is a form of risk management.
Insured :A person or entity who buys insurance is known as an insured or as a policyholder.
insurer:An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.
Insurance policy:The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured.
Premium : The amount of money charged by the insurer from the insured for the coverage set forth in the insurance policy is called the premium.
Agent: An authorized and licensed representative of an insurance company who sells and services insurance policies. Agents represent the insurance company and typically only sell policies from that company.
Amendment: A formal document which corrects or revises an insurance policy. When authorized by the insurer and the policy owner, the amendment attaches to or becomes part of the policy.
Annuity: A contract sold by a life insurance company that provides fixed or variable payments to an annuitant, either immediately or at a future date.
Annuitize: To begin a series of payments from an annuity. This term also refers to the settlement of a life insurance policy under the contract's annuity options.
Assignment: The transfer of the ownership rights of a life insurance policy from one person to another.
Beneficiary: A person(s) designated by the policy owner to receive the proceeds of an insurance policy upon the death of the insured.
Benefit: For life insurance, it is the amount of money specified in a life insurance contract to be paid to the beneficiary upon the death of the insured. It is commonly referred to as the Death Benefit. For health insurance, it is the amount of money payable by a health plan for the cost of covered services, as defined in the Certificate of Coverage.
Broker: A licensed representative who sells and services insurance policies. Brokers represent their customers and are usually contracted to offer insurance products from several different insurance companies.
Business Life Insurance: Life insurance purchased for business rather than personal purposes.
Claim: Notification to an insurance company that payment of the benefit is due under the terms of the policy.
Commissions: A fee or percentage of premium allowed to a salesperson or agent for services rendered.
Death Benefit: The dollar amount of coverage that is paid to the designated beneficiary(s) of a life insurance policy upon the insured's death.
Endorsement a clause in an insurance policy detailing an exemption from or change in coverage.insurance endorsement may be used to add, delete, exclude or otherwise alter coverage.
Effective Date: The date an insurance policy goes into effect. This is sometimes referred to as the Policy Date.
Electronic Funds Transfer (EFT): An arrangement in which premium payments are drawn from an insured's bank account. This is also referred as Auto-Draft or Pre-Arranged Withdrawal (PAW or PAC).
Exclusions: Specific conditions or circumstances listed in an insurance policy for which the policy will not provide benefit payments.
Expiration Date: The date on which an insurance policy ceases to provide coverage on the insured.
Extra Premium: The amount charged in addition to the regular premium to cover any extra hazard or special risk such as aviation or hazardous activities. This is commonly referred to as Flat Extra.
Face Amount: The amount of coverage provided by a life insurance policy. This is also referred to as Coverage Amount.
Fixed Benefit: An insurance policy benefit that remains the same and does not change.
Grace Period: The period of time between a premium's due date and the date the policy will lapse if the premium remains unpaid. This period is usually 30 days. If the insured dies during the grace period, the unpaid premium is deducted from the policy proceeds.
Extra Premium: The amount charged in addition to the regular premium to cover any extra hazard or special risk such as aviation or hazardous activities. This is commonly referred to as Flat Extra.
Face Amount: The amount of coverage provided by a life insurance policy. This is also referred to as Coverage Amount.
Fixed Benefit: An insurance policy benefit that remains the same and does not change.
Group Life Insurance: A life insurance policy issued to a group of people, usually through an employer, union or association.
Insurability: General acceptability by an insurance company of an applicant for insurance based on underwriting review, which may include items such as the applicant's current health status, medical history and driving record among others.
Issue Date: The actual date an insurance policy is issued. This may also be the effective date of the policy.
Lapse: The termination of an insurance policy due to non-payment of premium.
Lapse Notice: The notice provided in writing to the policy owner that the policy has lapsed.
Medical Information Bureau (MIB): A service that compiles medical information and application history of individuals who have applied for insurance in the past. Most insurance companies check an applicant's MIB report during underwriting.
Level Premium: A premium that remains the same throughout the period specified in the insurance policy.
Level Term Insurance: A type of term life insurance policy where the face value remains the same throughout the period specified in the insurance policy.
Lump Sum: The primary method of the settlement of a life insurance policy. The policy proceeds are paid to the beneficiary(s) all at once rather than in installment payments.
Lump Sum: The primary method of the settlement of a life insurance policy. The policy proceeds are paid to the beneficiary(s) all at once rather than in installment payments.
Mode: The term of premium payments for an insurance policy. Typical modes include monthly, quarterly, semi-annual and annual.
Mortality: The frequency of deaths in proportion to a specific population.
Mortality Rate: The number of deaths in a group of people, usually expressed as deaths per thousand.
Mortality Table: A table or chart listing the probabilities of death occurring at various ages. This is often used by insurance companies to establish rating and underwriting guidelines.
Multi-Year Premium Mode: A premium payment option where future annual premiums are paid in advance at a discount.
Orphan: A policy owner who is not currently being serviced by the writing agent/broker.
Policy Anniversary: The anniversary of the date of issue as shown in the policy.
Policy Date: The date the insurance policy becomes effective.
Policy Fee: A charge for policy administration expenses incurred by the insurance company. The policy fee is usually included in the premium.
Policy Loan: A loan from the insurance company to the policy owner secured by the policy's cash value.
Policy Owner: The individual who owns an insurance policy and who has all contractual rights related to the insurance policy. The policy owner may or may not be the same person as the insured, payor or beneficiary.
Pool: A method of distributing insurance risk in which the individual participants share overall risk with the other participants
Premium Rate: The price per unit of insurance.
Premium Receipt: The receipt given a policy owner for the payment of a premium.
Quote: The estimated premium amount for an applicant based on several factors including type of insurance, coverage amount, length of coverage, age, gender, health and medical history, family history, build and approximate rating class. All quotes are preliminary estimates with final rates determined by insurance company underwriting.
Reinstatement: A policy provision that allows a policy to be restored from a lapsed status. This is usually allowed during the 31 days following the expiration of an insurance policy's grace period.
Renewal: The process of continuing a policy by paying the premium due.
Replacement: The act of terminating a policy with an insurance company and replacing it with a new insurance policy.
Underwriter: The individual or team within a life insurance company who is trained to evaluate the insurance ability and determine the classification of applicants for insurance protection.
Underwriting: The process of evaluating applications for insurance based on an established set of guidelines. Underwriting determines the risk associated with an applicant and either assigns the appropriate rating class for the policy or declines to offer a policy.
Uninsurable Risk: An individual who is not acceptable for insurance due to excessive risk related to current health, medical history, occupation, avocations, etc.
Types of Insurance:
Life Insurance: The insurance that covers the risk of the life of the insured is called Life insurance. In this, the nominee will get the policy amount, upon the death of the insurer. This is also called as an Assurance, as the event, i.e. death of the insured is certain. The payment of the policy amount on the maturity will be made in one shot (lump sum) or periodical instalments, i.e. annuity.
- Whole life Assurance: Whole life assurance, is one in which the policy amount becomes due for payment on the death of the insured.
- Term Life Assurance: The insurance policy in which the amount has to be paid on the maturity of the specified term, for instance, 10 years or 15 years, then it is called as term insurance policy.
- Annuity: When the policy gets matured, the amount is paid in regular instalments, rather than in lump sum.
General Insurance : Non Life Insurance
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