Accident: An event or occurrence causing damage/injury
to an entity, and is unforeseen and unintended.
Age limits: Stipulated
minimum and maximum ages below and above which the company will not accept applications or
may not renew policies.
Agent: An insurance
company representative licensed by the state who solicits, negotiates or effects contracts
of insurance, and provides service to the policyholder for the insurer.
Annuity: It is a scheme where certain amount is paid
at yearly/half yearly/quarterly/monthly intervals.
Annuitant: Annuitant is the person who receives
certain amounts at yearly/half yearly/quarterly/monthly intervals.
Assignee: Assignee is the person to whom the benefits
under a life policy are assigned.
Assignor: Assignor is the person who holds the
right/title under the policy and who can make a valid assignment.
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.
Bonus: Bonus is the amount added to the basic sum
assured under a with-profit life insurance policy.
Claim Amount: It is the amount payable by the insurer
under a policy on a claim arising
Coverage: The scope of
protection provided under a contract of insurance; any of several risks covered by a
policy.
Dating Back: Dating Back or Back Dating is an option
to the life assured to get the advantage of lower age wherein the policy is commenced from
a date earlier than the date of signing of proposal form. However backdating is limited to
one year.
Deferred Annuity: An annuity plan where the first
annuity payment becomes payable after a chosen period that exceeds one year.
Deferment date: It is the date on which the deferment
period ends.
Deferment period: Deferment period is the period from
the date of commencement of the policy to the date of commencement of risk on the child's
life under a Children's Deferred Endowment Assurance policy.
EPDB: Extended Permanent Disability Benefit
Exclusions: Specific conditions or circumstances for
which the policy will not provide benefits.
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
Female lives: Category I: Women with income earned by
Virtue of their employment in any reputed organisation or institution eligible for Non
Medical Special Schemes.
Professions such as Medicine, Law, Charted Accountancy etc. and lady career agents of
LIC.
CategoryII: Women with unearned income attracting payment on income tax or women
holding sizeable personal properties/investments yielding income attracting assessment for
income tax.
First Class Life: An Individual is categorised as
First Class Life if is eligible to have insurance coverage at normal rates of premium.
First Unpaid Premium (FUP): First unpaid premium
refers to the first default in paying premium by the policy holder. On payment of the due
premium a receipt is issued and this receipt indicates the date of next due. If this due
premium is not paid that date becomes the date of FUP.
Guaranteed Insurance Sum (GIS): Guaranteed Insurance
Sum is equal to purchase price paid for a pension along with final Jeevan Akshay Bonus.
Gross Insurance Value Element (GIVE): Gross Insurance
value element is the amount payable on death of a policy holder under a Jeevan Dhara
Policy.
Guaranteed Addition: Guaranteed additions are
calculated at a rate per every thousand of sum assured. They are added to the basic sum
assured and are payable on admittance of claim. This benefit is allowed only for each year
for which premiums are paid.
Insurability: All
conditions pertaining to individuals that affect their health, susceptibility to injury
and life expectancy; an individual's risk profile.
Insured: The person whose
life is covered by a policy of insurance.
Life Assured: Life Assured refers to the person whose
life is being insured.
Last Birth Day (l.b.d): Age at last Birthday
Lien: In some cases extra risk is expected to decrease
over a period of time. In such cases proposal is considered and accepted with lien. Lien
operates through out the period, on a decreasing basis. In the event of death during the
lien period full sum assured is not payable.
Eg: If 25% decreasing lien is imposed for 5 years. It is understood that in first year
risk cover (sum assured payable) is only upto 75%, second year-80%, third year-85%, fourth
year 90%, fifth year 95%, and from sixth year onwards lien is not operative.
Loyalty Additions: Under certain life policies loyalty
additions are given as an additional benefit to the policy holder. The rate of addition
depends on the LIC's performance and is allowed only if the policy is in full force.
Moral Hazard: Moral Hazard is said to exist in the
case where we notice the absence of a genuine need for a life insurance or when a proposal
for insurance is submitted by an individual beyond his means.
Near Birth Day (n.b.d): Age on nearest birthday
Nominee: Nominee is the person who is nominated to
receive the amount under a policy and to give a valid discharge to the insurer on
settlement of claim under a life insurance policy.
Non-Standard Life: Any individual, who cannot be
granted a policy under normal rates of premiums but can be granted with an extra premium
over normal rates of premium, is considered as a Non-Standard Life.
Paidup Value: Paidup value is the reduced amount of
sum assured paid by the insurer in case of discontinuation of the payment of premiums
after paying the full premiums for the first three years.
PDB: Permanent Disability Benefit
Premium: Premium is the amount paid to secure an
insurance policy.
Proposal Form: It is a form, which is to be completed
for securing an insurance policy.
Proposer: Proposer is a person who proposes the
insurance policy.
Premium Waiver Benefit (PWB): Premium waiver benefits
are the benefits which can be availed under children's policies, wherein the future
premiums payable upto vesting date are waived in the event of death of the proposer.
Sum Assured: Sum assured is the amount that an insurer
agrees to pay on the occurance of an event.
Surrender Value: Surrender value is the amount payable
to the policyholder on his surrendering his right under a policy and terminating the
contract of insurance.
Target Pension: Target pension is the amount of
pension which one wishes to receive under a pension policy.
Term: Term is the period for which insurance coverage
is given.
Vesting Date: This is the date from which the life
assured ie., child becomes the absolute owner of the policy.
Vesting Bonus: It is the bonus, which the insurer
declares after evaluating its assets and liabilities, and that is added to the sum assured
under a policy.
Waiting Period: It is the period starting from date of
commencement of a policy to the date of commencement of risk under a Jeevan Kishore
Policy.
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