A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

Life Insurance

Learn important insurance terminology that can help you navigate life insurance policies with ease.

A

Accident Benefit:

An additional benefit that provides extra payout or a premium waiver in case of accidental disability, as specified in the policy.

Age Limits:

The minimum and maximum ages at which a person can buy or renew a policy.

Annuity Plans:

Life insurance plans that provide regular income, usually after retirement.

Application Form:

The form completed by an applicant to provide information required for obtaining insurance coverage.

B

Beneficiary:

The person or entity designated to receive the policy benefits upon the death of the life assured

Business Insurance:

Insurance that protects a business against financial losses arising from specific risks, including the loss of key personnel.

C

Cancelable Policy:

A policy that may be cancelled by the insurer or the policyholder according to its terms

Coinsurance:

The risk of a large-scale loss caused by events such as floods, earthquakes, or storms.

Convertible Whole Life Policy:

A whole life policy that can be converted into an endowment policy after a specified period

Coverage:

The protection and benefits provided under an insurance policy.

D

Days of Grace:

An additional period allowed after the premium due date during which the policy remains in force.

Deferment Period:

The period between purchasing a pension plan and the start of pension payments.

Double/Triple Cover Plans:

Life insurance plans that provide two or three times the basic sum assured in the event of death during the policy term.

E

Endowment Policy:

A life insurance policy that pays the sum assured on death during the policy term or on survival until maturity.

Excess and Surplus Insurance:

Insurance that provides coverage for risks that are unusually large or not typically covered in the standard insurance market.

F

Facultative Reinsurance:

A type of reinsurance where the reinsurer has the option to accept or reject each risk individually.

Family Insurance:

A policy that provides life insurance coverage for multiple family members under a single contract.

Fiduciary:

A person who is entrusted to act in the best interests of another person.

Fire Insurance:

Insurance that covers losses or damage caused by fire and related risks.

Franchise Insurance:

A form of insurance offered to members of a group, association, or employer under a common arrangement.

G

Guaranteed Insurance Sum (GIS):

Insurance that covers loss of or damage to glass and related fixtures.

Gross Insurance Value Element (GIVE):

A serious failure to exercise reasonable care, showing reckless disregard for consequences.

Group Life Insurance:

Life insurance coverage provided to a group of people under a single master policy.

Guaranteed Policies:

Policies that provide fixed and guaranteed benefits as specified in the policy terms.

I

Indemnity:

Insurance that covers certain expenses incurred as a result of identity theft.

Insurable Interest:

Compensation provided for a loss through payment, repair, or replacement.

Insurability:

The extent to which a person qualifies for insurance based on factors such as age, health, lifestyle, and risk profile.

J

Joint Life Endowment Assurance Plans:

Life insurance plans that cover two lives and pay benefits on death or maturity, depending on the policy terms.

K

Keyman Insurance Policy:

A life insurance policy taken by a business on the life of a key employee whose loss could significantly affect the business.

L

Lapsed Policy:

A policy that has ceased to be in force due to non-payment of premiums.

Limited Payment Life Policy:

A life insurance policy where premiums are paid for a limited period, while coverage continues for the insured’s lifetime.

Life Assured:

The person whose life is covered under a life insurance policy.

Loyalty Additions:

Additional benefits that may be paid by an insurer at maturity, based on the policy’s performance and terms.

M

Maturity:

The date on which a life insurance policy term ends and the maturity benefit becomes payable.

Maturity Claim:

The amount payable to the policyholder when the policy reaches its maturity date.

Misrepresentation:

Providing false, inaccurate, or misleading information when applying for or maintaining an insurance policy.

Money Back Policy:

A life insurance policy that provides periodic payouts during the policy term and a final benefit at maturity

Moral Hazard:

A risk factor arising from a person’s behaviour, habits, or circumstances that may increase the likelihood of a claim.

N

Nomination:

The process of appointing a person to receive the policy benefits in the event of the policyholder’s death.

Non-Cancelable Policies:

Policies that remain in force as long as premiums are paid, and cannot be cancelled by the insurer under the stated terms.

P

Premium:

The amount paid by a policyholder to maintain insurance coverage.

Premium Back Term Insurance Plans:

Term insurance plans that refund the premiums paid if the life assured survives the policy term.

R

Reinstatement:

The restoration of a lapsed policy to active status after meeting the insurer’s requirements.

Risk:

The possibility of a future event that may result in a claim or financial loss.

S

Salary Saving Scheme:

A premium payment arrangement where premiums are deducted directly from an employee’s salary.

Sub Standard Risk:

A person considered to have a higher-than-average insurance risk due to health, occupation, lifestyle, or other factors.

Surrender Value:

The amount payable if a policyholder voluntarily terminates a policy before its maturity date.

Survival Benefit:

A payment made to the policyholder at specified intervals during the term of certain life insurance policies.

V

Vesting Age:

The age at which pension or annuity payments begin under a retirement plan.

W

Whole Life Policy:

A life insurance policy that provides coverage for the insured’s entire lifetime, subject to policy terms.

With-Profit Policy:

A policy that participates in the insurer’s profits through bonuses declared from time to time.

Without-Profit Policy:

A policy that does not participate in the insurer’s profits and is not eligible for bonuses.

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