Insurance terms can be confusing for you who are unfamiliar with insurance or who have never bought an insurance policy before. Here, we have compiled a list of insurance terms commonly used to help you to better understand the policies and benefits that we offer.
Actuarial (actuarial)
The function of an insurance company to apply mathematical principles to the insurance, including calculate / calculate the list price of premiums and ensuring the financial health of the company.
Annuity (annuity)
Annuity provides a fixed annual income for life. Typically, some cash money to be invested in the future could generate funds to acquire the fixed income for life.
Assignment (transfer of rights)
The transfer of part or all rights to receive any income derived from insurance policies from a person or entity, to another person or entity.
Automatic Premium Loan / Non-Forfeiture Loan (automatic premium loan / loan with no redemption)
If premiums are not paid in a period of grace period and the policy has sufficient cash value, there is a provision which stipulates that the amount of the related premium paid in advance automatically. The amount of the outstanding premium loan may bear interest.
Cash Value / Surrrender value (cash value / redemption value)
Total money to be received by the policyholder when he poured his life insurance policy that has the advantages of the savings.
Endowment Plan (aid programs)
This type of insurance program combines both protection and savings benefits. This insurance program pays benefits of cash money to the insured when the policy matures. The program also pays this amount when the insured dies or, where applicable, while the insured is a comprehensive and permanent disability is permanent, and if it happens at the time of the policy.
Grace Period (the grace period)
Period after the end of the maturity date of payment of premium where the premium payments can still be done without interest. During this period, policyholders are still considered valid.
Investment-Linked Plan (insurance program related investment)
Premiums paid are used either to purchase insurance protection benefits as well as the units in a portfolio of investment funds. Price of units will depend on investment performance of funds.
Maturity Date (maturity date)
The date has been agreed upon which an insurance company paying some cash money.
Non-participating policy (a policy that does not include)
An insurance policy where the policyholder does not participate in company profits.
Paid-up Value (the value of payments in advance)
This provision gives rights to the policy holders to stop payment of premiums at a later date after obtaining the policy cash value. Policy shall remain in force in accordance with the amount of insurance money has been reduced in value.
Participating Policy (a policy that includes)
An insurance policy where policyholders participate in company profits.
Policy lapse (policyholders through time)
Termination of insurance responsibility as a result of unpaid premiums.
Policy Loan (loan policy)
A policy holder who needed cash for temporary period can apply to obtain policy loans against insurance coverage of such policy. Imposition of interest is calculated on the effective date of policy loans.
Premium (premium)
Amount to be paid to obtain the desired insurance coverage.
Regular Premium Policy (regular premium policies)
A policy that requires regular premium payments, for example, monthly, every four months, every six months or yearly.
Reinstatement (re-entry)
Process in which an enforcing asuradur back a policy that has elapsed time due to unpaid premiums updates.
Rider (additional benefits)
Riders are additional benefits that may be attached to a basic insurance programs, such as whole life insurance program (whole life plan) or a program of assistance (endowment). This benefit is designed to provide additional financial protection for a cheaper cost.
Single Premium Policy (policies with one premium payment)
A policy that requires only once a premium payment made in advance.
Sum Assured (the amount insured)
Number of insured deposits to policyholders.
Term Plan (limited term program)
These types of programs offer protection insurance / life insurance protection for a limited period of time. Total sum insured can only be paid if the insured dies, or where applicable, comprehensive disability and permanent during the validity of the program ..
Underwriting (insurance)
The process of assessment / evaluation and classification of the degree of risk related to potential tertaggung, as well as making the decision to accept or reject the risk.
Whole Life Plan (comprehensive insurance program)
This type of life insurance program offers protection / life-long protection against death or, if applicable, comprehensive disability and permanent, to the insured.