16 Points to Know Before Buying a Life Insurance Plan – Important Terms of Life Insurance Policyholder: The policyholder, also called a policy owner, is an individual who proposes the purchase of the life insurance plan and pays the fixed amount of premium regularly. He/she is the owner of the policy. Life Assured: Life Assured is the person who is insured or for whom the life insurance is purchased to cover the risk of unforeseen demise. Mainly, he/she is the sole earner of the family. Life assured may/may not be the policyholder. Let’s see an instance if you buy life insurance for your father and pay a monthly amount of premium for him, then you will be called the policyholder and the...
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Your Money: Demystifying life insurance jargons Life insurance contracts are full of obscure technical terms. Here, are a few important terms that a policyholder must know. In most policies, all benefits under a policy cease if at least two full years’ premiums are not paid. Forfeiture regulation also says that if it comes to the notice of the insurers that some material information has not been disclosed in the proposal form, the policy can still be cancelled and no benefits under the policy will be available. This is as per the provision of Section 45 of the Insurance Act, 1938. Section 45 says that no policy can be called in question by the insurers after three years from the date of...
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Important Life Insurance Terms Important Life Insurance Terms An agent is an insurance company representative who sells and services life insurance contracts for the insurer. He is an intermediary between the insurer and the policyholder. An actuary is a professional expert in insurance mathematics. They use their knowledge to analyse the risk involved in insurance. They are known for calculating the premium rates, dividends, company reserves, and other statistics. An annuity is the periodic income benefits received by the annuitant from the insurance company for a specific time, such as the number of years or throughout life. An assignment is a legal document that allows the policyholder...
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Health Insurance Jargons 14 Feb 2019 Decoding the terminology in Health Insurance for a healthy life KEY TERMS IN MEDICAL INSURANCE: Assignee: The person who get the benefits of the policy. Claim: The payment request filed by the insured person to the Insurance company, for payment of Medical Expenses. Co-payment: Co-payment is a cost-sharing requirement under a health insurance policy. In certain cases, the policyholder agrees to bear a certain percentage of the hospital bill, as per the conditions of the policy it is called co-payment. In doing so, insurer charges a lesser premium. It’s important to note that the sum insured in such cases remains the same and is not reduced. This feature...
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A self-employed individual faces a plethora of more challenges than a salaried individual and this is why it is all the more important for a self-employed person to invest in term plan. The plan has been specifically designed to cater to the financial expenses caused due to COVID-19. The COVID-19 outbreak has changed how all of us view the world. Every part of people’s lives in India has been affected, along with the economy, politics, culture, and society. The official data released by the National Statistics Office (NSO) says that India’s gross domestic product (GDP) contracted 23.9 per cent in the April-June quarter of 2020-21 from that in the same quarter last financial year. This was...
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The maximum or minimum age that an insurer will issue a policy or continue one that’s already in place. You need to be aged between 18 and 77 years to apply for our life insurance, and between 50 and 80 years to apply for our over 50 cover. The person applying for the insurance policy. Once you have a quote, you can apply for life insurance by completing an application online or over the phone. You’ll usually need to answer questions about your health and lifestyle as part of your application. The person or organisation that will receive the insurance policy payout if you pass away or have a terminal illness within the policy term, and the claim is successful. The amount of money paid to...
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Four major mistakes to avoid while buying term life insurance It is important to understand the features of every life insurance product available in the market. In this piece, we take a look at the four major mistakes one must avoid while buying a term life insurance. Non-disclosure of critical information It is very important to disclose all the crucial information for the smooth processing of claims. These can include any pre-existing medical condition, family medical history, risky lifestyle choices like smoking and engaging in hazardous occupations. Santosh Agarwal, CBO-Life Insurance, said, “At first, it may seem that not disclosing such information will result in a lower premium. But...
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1. Policyholder: Also known as the policy owner, this is the person who owns the policy. The policyholder is the one who buys the insurance and pays regular premiums. 2. Life Assured: This refers to the person for whom the insurance is bought. This may or may not be the same as the policyholder. For example, if you buy insurance for yourself, you will be the policyholder and the life assured. But, if you buy insurance for a parent, and pay the monthly premiums for them, then you will be the policyholder while the life assured will be your parent. 3. Nominee: The nominee or the beneficiary is the person who inherits the sum assured in case the life assured passes away during the term of the...
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Life insurance has traditionally been designed to provide financial protection on the life of the breadwinner of the family. In today’s world, with the rise in the number of working couples, the significance of life insurance for both spouses has increased considerably. Accordingly, the best step forward, for both spouses, is to buy a term insurance plan. What is term insurance It is a low-cost, high-cover insurance plan that is primarily meant to provide life insurance coverage in the purest form. But, hold on! Should the husband and wife buy the term insurance plans separately or buy a joint life term insurance plan? Let us find out. In a term insurance plan, on the death of the insured...
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In accordance with the agreement, terms of the transaction are not being disclosed De Goudse to purchase Leidsche from Reinsurance Group of America. (Credit: Pete Linforth from Pixabay) Reinsurance Group of America, Incorporated (NYSE: RGA) (RGA) announced that it has agreed to sell its Dutch life insurance company, Leidsche Verzekering Maatschappij N.V. (Leidsche), to De Goudse N.V. (De Goudse). Leidsche has liabilities of approximately $0.5bn at year end 2019. “RGA remains highly committed to serving its clients in its reinsurance business in the Netherlands,” said Johan Tuijp, Managing Director, Netherlands and Nordics, RGA. “We believe the sale of Leidsche supports their long-term...
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