129 terms found
A
Absolute Assignment
Permanent transfer of all policy rights to another person or institution.
Accidental Death Benefit
An additional payout provided if the insured dies due to an accident, usually offered as a rider.
Actuary
A professional who calculates insurance risks and premiums.
Aggregate Deductible
A deductible applied to total claims during a policy period.
Annuity
A fixed sum paid at regular intervals, typically after retirement, in exchange for a lump sum investment.
Assignment
Transfer of policy rights from one person to another.
AYUSH Cover
Coverage for treatments under Ayurveda, Yoga, Unani, Siddha, and Homeopathy.
B
Backdating
Starting a policy from an earlier date than the application date.
Beneficiary
The person nominated to receive the policy payout (death benefit) in the event of the policyholder's death.
Bonus
Additional amount declared by participating (in company's profits) insurance policies.
Break-in Period
A gap between policy expiry and renewal.
Burglary Insurance
Insurance against loss due to theft involving forced entry.
C
Cashless Claim
A facility where the insurer directly settles hospital bills with a network hospital without the policyholder paying upfront.
Claim Settlement Ratio
The percentage of claims an insurer has paid compared to claims received.
Co-payment
A cost-sharing arrangement where the insured pays a fixed percentage of every medical claim out of pocket.
Comprehensive Insurance
Insurance that covers both third-party liability and own damage.
Conditional Assignment
Transfer of policy rights subject to certain conditions.
Consumables Cover
Coverage for items such as gloves, masks, and syringes during treatment.
Contribution Clause
A rule that shares claim payments among multiple insurers covering the same risk.
Corpus
The total fund accumulated through investments or premiums.
Critical Care Benefit
Financial support for treatment of specified severe illnesses.
Critical Illness Cover
Insurance that pays a lump sum on diagnosis of specified serious illnesses.
Cumulative Bonus
Increase in sum insured for every claim-free year.
Cyber Insurance
Insurance covering losses arising from cyberattacks and data breaches.
D
Day Care Treatment
Medical procedures that do not require 24-hour hospitalization.
Day Care Treatment
Medical procedures that require hospitalisation for less than 24 hours due to advances in technology.
Death Benefit
The amount paid to the nominee if the insured person dies during the active policy term.
Deductible
The fixed amount the policyholder must pay out of pocket before the insurer begins to cover medical expenses.
Deferred Annuity
A pension plan where income starts at a future date.
Depreciation
The reduction in value of an asset due to age and usage.
Disclosure
Sharing all relevant information with the insurer while buying a policy.
Domiciliary Treatment
Medical treatment received at home when hospitalization is not possible.
E
Employer-Employee Insurance
A policy purchased by an employer for the benefit of an employee.
Endorsement
An official change made to an existing policy.
Endowment Plan
A life insurance policy that offers both protection and savings.
Endowment Plan
A life insurance policy that pays a lump sum on maturity or on the death of the insured, whichever comes first.
Exclusion
Situations or conditions that are not covered by the policy.
F
Family Floater
A single health insurance policy that covers all members of a family under one sum insured.
Fidelity Guarantee Insurance
Insurance protecting employers against employee fraud or dishonesty.
Financial Goal
A target such as education, retirement, or buying a home that requires money planning.
Financial Underwriting
Assessment of a person's income and financial status before issuing insurance.
Fire Insurance
Insurance covering damage caused by fire-related incidents
Fraudulent Claim
A claim made using false information or documents.
Free Look Period
A window of 15–30 days after policy issuance during which the policyholder can cancel the policy for a full refund.
G
Grace Period
Additional time (usually 15–30 days) given after a missed premium payment before the policy lapses.
Group Insurance
Insurance provided to a group of people under a single policy.
Guaranteed Addition
A benefit promised by the insurer and added to the policy value.
H
Health Check-Up Benefit
Free preventive health tests offered under some health plans.
Home Insurance
Insurance protecting a house and its contents against specified risks.
Hospital Cash Benefit
Daily cash allowance paid during hospitalization.
Hospitalization
Admission to a hospital for medical treatment.
Human Life Value (HLV)
An estimate of a person's economic value to their family based on future income, goals and liabilities
I
Immediate Annuity
A pension plan that starts paying income shortly after purchase.
Income Benefit
Regular payments made till the policy term instead of a one-time lump sum.
Indemnity
Compensation that restores the insured to the financial position before the loss.
Insurable Interest
A financial relationship that justifies buying insurance on a person or asset.
Insurer
The insurance company providing the coverage.
J
Joint Life Policy
A policy that covers two people under a single contract. LIC Jeevan Sathi Policy which covers Husband and Wife under a single Policy
K
Keyman Insurance
Insurance taken by a business on an important employee whose loss could affect the company.
L
Lapsed Policy
A policy that has become inactive because premiums were not paid within the grace period.
Liability Insurance
Insurance covering legal liability for injury or damage to others.
Loading
An extra premium charged because of higher risk factors such as occupation, health, etc
Lump Sum Benefit
A single payment made upon maturity or death in a life Insurance policy
M
Marine Insurance
Insurance covering goods transported by sea, air, or land.
Material Fact
Important information that can influence the insurer's decision.
Maturity Benefit
The amount paid to the policyholder when the policy completes its full term without any claim.
Misrepresentation
Providing incorrect information while purchasing insurance.
Money Back Policy
A policy that pays part of the benefits at regular intervals during the term.
Moral Hazard
Increased risk arising from a person's intention while obtaining insurance.
Mortality Charge
The cost charged for providing life insurance protection.
N
Network Hospital
A hospital that has a tie-up with the insurance company to provide cashless treatment to policyholders.
No Claim Bonus
A reward given by the insurer for not making any claims during a policy year, usually as an increase in sum insured.
Nominee
The person designated by the policyholder to receive the insurance proceeds in case of the policyholder's death.
Non-Participating Policy
A policy that does not receive bonuses from insurer profits.
O
Outpatient (OPD) Cover
Coverage for doctor consultations and treatments without hospitalization.
Own Damage Cover
Protection against damage to your own vehicle.
P
Paid-Up Policy
A policy that continues with reduced benefits after premium payments stop.
Participating Policy
A policy eligible to receive bonuses declared by the insurer.
Peril
A cause of loss, such as fire, accident, flood, or theft.
Permanent Partial Disability
A disability causing partial but permanent loss of function.
Permanent Total Disability
A disability that completely prevents a person from working.
Personal Accident Cover
Insurance that pays benefits for accidental death or disability.
Policy Anniversary
The yearly renewal date of a policy.
Policy Illustration
A document showing how policy benefits may work under different scenarios.
Policy Inception Date
The date on which insurance coverage begins.
Policy Schedule
The document containing key details of your insurance policy.
Policy Term
The duration for which the insurance policy remains active and the insurer is liable to pay benefits.
Policyholder
The person who owns and pays for the insurance policy.
Portability
The right of a health insurance policyholder to transfer their existing policy to another insurer without losing accumulated benefits.
Post-Hospitalization Expenses
Medical expenses incurred after discharge from the hospital.
Pre-existing Disease
Any medical condition that existed before the start of the insurance policy, often subject to a waiting period.
Pre-Hospitalization Expenses
Medical expenses incurred before hospital admission.
Premium
The amount paid periodically (monthly, quarterly, or annually) to the insurer to keep the policy active.
Premium Holiday
A period during which premium payments are not required.
Preventive Healthcare
Medical services aimed at preventing illness rather than treating it.
Product Liability Insurance
Coverage against claims arising from defective products.
Professional Indemnity Insurance
Insurance protecting professionals such as doctors against claims of negligence in performing duties
Proposal Form
The application form used to request insurance coverage.
Protection Gap
The difference between the insurance coverage needed and the coverage actually available.
Public Liability Insurance
Insurance covering claims from the general public for injury or damage.
R
Reduced Paid-Up Value
The reduced benefit available when premiums are discontinued after a minimum period.
Reimbursement Claim
A claim where you pay first and later get reimbursed by the insurer.
Reinsurance
Insurance purchased by insurance companies to reduce their own risk.
Restoration Benefit
Automatic refill of the sum insured after it gets exhausted.
Return of Premium
A term insurance variant that refunds all premiums paid if the insured survives the policy term.
Revival
Reactivating a lapsed policy by paying pending premiums and fulfilling conditions.
Rider
An optional add-on benefit attached to a base insurance policy, such as accidental death cover or critical illness cover.
Risk Cover
The financial protection provided by the insurance policy.
Room Rent Limit
The maximum room cost covered by a health insurance policy.
S
Salvage
Property or items remaining after a loss (fire, flood, earthquake) that still retain value.
Standard Risk
A person with average risk depending upon his age, occupation, medical condition, etc
Sub-Limit
A cap on the amount payable for a specific treatment or expense.
Substandard Risk
A person considered higher risk due to age, occupation, health or lifestyle factors.
Sum Assured
The guaranteed amount the insurer agrees to pay on death or maturity of the policy.
Surrender Value
The amount a policyholder receives if they choose to exit the policy before it matures.
Surveyor
An expert appointed to assess the extent of an insurance claim.
Survival Benefit
A payment made to the policyholder during the policy term if they are alive.
T
Temporary Disability
A disability that prevents working for a temporary period.
Terminal Bonus
A one-time bonus paid when the policy ends.
Third-Party Insurance
Coverage for damage or injury caused to another person or property.
Top-Up Plan
An additional health cover that activates after a certain claim amount.
Transit Insurance
Insurance protecting goods while they are being transported.
U
ULIP
Unit Linked Insurance Plan. A plan that combines life insurance with market-linked investments.
Underinsurance
Having insurance coverage that is lower than the actual value of the asset or need.
Underwriting
The process of assessing risk before issuing an insurance policy.
V
Voluntary Deductible
A deductible chosen by the policyholder to reduce premium costs.
W
Waiting Period
The time after policy start during which certain illnesses or conditions are not covered by the insurer.
Waiver of Premium
A feature where future premiums are waived under specified conditions such as death or total disability of the policyholder
Z
Zero Depreciation Cover
An add-on that reduces deductions for depreciation during claims.