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Glossary

The glossary helps you improve your understanding of the terms used in insurance. Your knowledge of the insurance business will empower you to make smart decisions that are relevant to your financial needs and risk profile.

To locate a word of your choice click through the alphabetical index below.
A - K | L - T | U - Z
     
A
Accelerated death benefit rider
A life insurance policy providing for payment of an additional cash benefit related to the face amount of the base policy when death occurs by accidental means.
Accidental death insurance
Insurance providing payment if the insured's death results from an accident.
Attained Age
Your current age. Your attained age is one of the factors life insurance companies use to determine your premiums.
B
Backdating
A procedure for making the effective date of a policy earlier than the application date. Backdating is often used to make the age of the consumer at issue lower than it actually was, in order to get lower premium.
Beneficiary
The person designated to receive the death benefit when the insured dies.
C
Cash value
The equity amount or 'saving' accumulation in a whole life policy.
Claim
Notification to an insurance company that payment of an amount is due under the terms of the policy.
Conditional receipt
Given to policy owners when they pay a premium at the time of application. Such receipts bind the insurance company if the risk is approved as applied for, subject to any other conditions stated on the receipt / proposal form / policy document.
Contestable clause
A provision in an insurance policy setting forth the conditions under which or the period of time during which the insurer may contest or void the policy.
Coverage
Another word for insurance. Insurance companies use the term coverage to mean the Rupee amount of insurance purchased.
Convertible term
A policy that may be changed to another form by contractual provision and without evidence of insurability. Most term policies are convertible into permanent insurance.
D
Death benefit
The amount of money paid to the beneficiary when the insured person dies.
Double indemnity
Payment of twice the basic benefit in the event of loss resulting from specified causes or under specified circumstances.
E
Evidence of insurability
Any statement or proof of a person's physical condition, occupation, etc. affecting acceptance of the applicant for insurance.
Exclusions
Specific hazards listed in a policy for which benefits will not be paid.