• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Accelerated Benefit Rider: A rider tagged with a regular life insurance policy that provides for the early payment of a portion of the base policy amount, if the life assured contracts a terminal illness or undergoes treatment arising from causes mentioned in the policy document.

Accidental Death Insurance: Insurance that provides coverage in the event of death due to accidental injuries, but not illness. In the event of death, payment is made to the person nominated by the insured. Also offered by insurance companies as an Accidental Death benefit rider.

Accidental Death and Dismemberment: Insurance providing payment if the insured's death results from an accident, or if the insured accidentally severs a limb above the wrist or ankle joints, or totally and irreversibly loses his or her eyesight.

Accumulation Period: The time interval between the commencement of policy and when benefits are paid. The length of accumulation period can be chosen by the person purchasing the policy.

Actuary: A person professionally trained in the mathematical and technical aspects of life insurance, particularly the calculation of premiums, reserves, and other values.

Actuarial Cost Method: A method that determines contributions that would be made under an insurance plan.

Adjustable Life Insurance: A facility allowing a life insurance policy-holder to increase or decrease the premium and make changes in the protection period of the insurance plan.

Agent (Life Advisor): A representative of an insurance company authorised to sell insurance policies. Agents identify the financial needs and future goals of their clients and recommend appropriate products to suit. Also dubbed advisors, they have agency agreements with one or more companies to sell life insurance and investment products for that company (or companies).

Age limits: The maximum and minimum ages above or below which an insurance company will not accept applications for insurance from or will not renew a policy with a person. In other words, age limits serve as guidelines with which all aspects of the insurance contract will be enforced.

Annually Renewable Term: A form of renewable term insurance that provides coverage for one year and allows the policy owner to renew their coverage each year, without evidence of insurability. Also called Yearly Renewable Term (YRT).

Annuity: A policy under which an insurance company promises to make a series of periodic payments, at yearly/half-yearly/quarterly/monthly intervals, to a named individual in exchange for a premium or a series of premiums called the purchase price.

Annuity Certain: An insurance contract that provides an annuity for a certain number of years, irrespective of whether the insured is alive or dead.

Annuitant: Annuitant is the person who receives annuity payments at specified intervals from the insurance company.

Assignment: Assignments are actions taken that affect ownership of the policy. A life insurance policy is regarded under the law as a form of personal property. Its owner can retain the policy, transfer it to someone else, mortgage or charge it or use it as the basis of a trust.

A legal assignment must be followed by a notice to the insurance company. Once notice is given, the person to whom the policy has been assigned to has precedence over all other interests except under certain cases.

Policies are often assigned to a bank to provide security for a loan.

Send this article to Friends by E-Mail

Stories in this Section
Reckitt Benckiser India: Accept

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line