Glossary for Life Insurance
Here is a glossary that will help you to understand life insurance terms:
Accidental Death – This refers to death resulting from bodily injury caused by unexpected, violent, external and visible means alone. Death must occur within six months (180 days) of the event.
Administration Fee – This is a percentage of the Sum Assured which is deducted to cover the claims administration cost. The percentage of the deduction differs from insurance company to insurance company. Check the Policy Schedule to see the latest percentage, which might change over time.
Application Date – This refers to the date the sale was confirmed and Policy was recorded by the insurance company.
Beneficiary – This refers to the natural person nominated by the owner of the policy to receive the Life Cover Benefit should the person whose life is insured die.
Currency – This refers to the date of the Commencement or Reinstatement of the policy as the full premiums are paid.
Date of Commencement – This refers to the 1st of the month in which the first Premium is payable or paid. Life cover begins only on the first day of Premium payment.
Financial Underwriting –This is the process by the insurance company to ensure that the correct, affordable insurance is applied to the customer.
Insured Life – This refers to the individual named in the Policy Schedule whose life is covered by the insurance.
Main Policy – This is the policy referred to the in Policy Schedule and does not include any Rider or Supplementary Benefits, which will appear in a separate Policy Schedule, Letter or Document.
Material Information – This refers to all the information needed by the Insurance Company to make sure the appropriate risk is applied before the Policy is issued. It includes any other important information that the applicant might know of, even if this information is not specifically requested.
Natural Death – This is death resulting from old age, disease or illness.
Notifiable Conditions – This means that the Insurance Company has to be notified if there is any change in the Occupation or Smoking Status of the Insured Life, or if he or she takes up dangerous Sports or other Activities. This is because these activities might affect the Premium and any claim assessment.
Occupation – This is your usual profession, occupation, trade or type of business as recorded by the Insurance Company.
Policy Owner – This is the person who owns the Policy and who will be the payer of the Premiums, unless the Insurance Company is otherwise notified in writing.
Premium – This is the monthly amount paid by the Policy Owner according to the contract, in return for a promise by the Insurance Company to provide policy benefits as contained in the Policy.
Smoking Status – This refers to whether or not the Insured Life uses tobacco products such as cigarettes, cigars or pipes. Someone who gives up smoking must have done so for at least 12 months (twelve months) for the person to be classified as a non-smoker.
Terminal Illness – This is a condition, illness or disease which, according to the Insurance Company, is likely to result in the death of the Insured Life in 12 ( twelve) months or less following the payment date for this Benefit.
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All info was correct at time of publishing