Important Term Insurance Terminology Explained – Superstorer

Premium


It is the amount of money that is paid by the person or any organization periodically and regularly to the insurance company for the policy opted. The premium paid may be monthly, quarterly half- yearly or yearly based on the policy and suitability of the person. If the organization or individual fails to pay the premium the policy may be cancellation.


Beneficiary


The person that is permitted to receive all the claim amount of the insurance is called the beneficiary. And he is selected by the policy holder at the time of purchasing the policy. He is the person who is given the power by the policy holder to take all the benefits of the policy in the absence of the policy holder.


Policy Holder


Te person who owns and controls the policy and his name is written on the policy is the policy holder and is the only individual who can make changes or adjustments or terminate the policy. The premium is paid by the policy holder or he is responsible to make sure for the premium to be paid on time.
Life assured
It is the person whose life is assured under the policy. If a person buys the policy for his child than the person is the policy holder and the child is the insured person who will be benefited from the policy if something unfortunate happens to the father.
Nominee
It is the person who will be benefited from the policy if something happens to the insured person.
Suppose father takes the policy for her wife and wife gives the name of their son as the nominee. Then here father is the policy holder, his wife is the insured person and the son is the nominee.
Policy tenure
It is the time for which the policy will provide coverage or insurance to the policy holder. It is the time for which the policy is active and will assist the holder in the times required. This term is decided by the type of the insurance plan taken by the person or organization.
Maturity benefit
Once the pre decided tenure of the policy is completed the insurance company gives the accumulated sum of money deposited by the policy holder during the policy tenure along with the terminal bonuses and other accumulated bonuses. This is called maturity benefit.

Death benefit
If the insured person passes away, then the beneficiary is given the claim amount of the insurance called as death benefit. The policy holder can determine the way in which the beneficiary can get the claim amount. It may be a lump-sum- payment with all the money given at once or may be a installment method with amount given in gradual manner on pre-decided basis.

Claim process
It is the series of verification process done by the insurance company before handing over the claimed amount of the policy. In such process first the policy is reviewed and then company evaluates the losses incurred and the after this process is completed then the claim amount is given to recover from the damages.
Face amount
It is the total amount that is paid by the insurance company and that is written on the policy on sudden death of the policy holder or after the policy matures.
Term life coverage
Such kind of policies gives death benefit to the beneficiary if the insured dies within the term of the policy. When the term is over it has to be renewed for the beneficiary to get death benefit , otherwise the death of insured after the term is over does not allow any beneficiary for any claim amount.
Free period look
It is the time period within which a person can terminate a new policy taken by him without any penalties.

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