The Life Insurance Glossary

Get ₹1 Cr. Life Cover at just ₹449/month*
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
Tax Benefit
Upto Rs. 46800
Life Cover Till Age
99 Years
8 Lakh+
Happy Customers
*Tax benefit is subject to changes in tax laws. *Standard T&C Apply
** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Get ₹1 Cr. Life Cover at just ₹449/month*
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
+91
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use

Life Insurance Glossary
Accelerated Death Benefit
 

A provision or rider that allows to receive all or part of the benefits of your policy before you die. These benefits are paid for terminal illnesses like AIDS, organ transplant, nursing home confinement, etc. 

Accidental death benefit             

A provision or rider that pays more in case you die as a result of an accident, also called "double indemnity" 

Actuary 

An expert trained in the mathematics of insurance, responsible for the calculation of reserves, premiums, and other values. 

Assumed interest rate 

The minimum interest rate on a variable life insurance policy. 

Automatic premium loan 

If you cannot pay your premiums, the insurance company takes money from your policy’s cash value to pay the premiums, assuming there is sufficient cash value. 

Beneficiary 

The person, persons or entity designated to receive the death benefits from a life insurance policy when you die. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Cash value 

The money that accumulates in your life insurance policy while the policy is in force that the insured can borrow. 

Decreasing term 

A term life policy in which the death benefit goes down. 

Disability benefit 

A feature of some policies for the waiver of premium if the policyholder becomes permanently and totally disabled. 

Endorsement 

An addition to a policy that modifies its benefits. 

Endowment 

A cash value policy payable to the policyholder on the maturity date, if living, or to a beneficiary at the time of the insured’s death. 

Evidence of insurability 

Statement or proof of a person’s health, finances, lifestyle, habits, or job to the extent that they affect his or her acceptability for insurance. 

Face value 

The amount on the face of the policy that will be paid by the company at death or at the maturity of the policy. The actual sum may be higher or lower depending on the options selected, outstanding policy loans or premium owed. 

Grace period 

The time, usually 30-31 days, following the premium date, during which you can pay an overdue premium while keeping your insurance policy in force throughout this period. 

Guaranteed insurability 

An option that allows the policyholder the right to buy additional life insurance at specific times in the future, without having to answer questions about his or her health. 

Guaranteed rate 

The minimum interest rate that the insurance company promises to pay to a policyholder’s cash value. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Lapsed policy 

A policy is terminated because of failure to pay the premium(s). 

Material misrepresentation 

A significant misstatement in an application form. For example, you did not tell the truth about a situation or medical condition at the time of applying for coverage which would have caused the company to deny you insurance if they had known the truth. 

Mortality charge 

The charges a company makes against the policy to cover the policy’s share of the cost of death claims, based upon a mortality table used by the insurance company. Also called the “cost of insurance”. 

Mortality table 

A statistical table that shows how long people are expected to live under various situations. 

Nonforfeiture options 

Choices available to a policyholder when he or she discontinues a cash value policy after several years but before maturity. It may be in a cash payment, extended term insurance, or as reduced paid-up term insurance. 

Nonparticipating policy 

Policy in which the company does not distribute any of its surplus to its policyholders. 

Policy reserves 

Funds held by a life insurance company specifically to fulfill its policy obligations. 

Premium expense charges 

An amount deducted from each premium payment that reduces the amount credited to the policy. 

Rated policy 

Policy issued at a higher than standard premium to cover a person classified as a greater than-average risk, usually due to impaired health or a hazardous occupation. Sometimes called an extra-risk policy. 

Reinstatement 

The resumption of coverage under a policy that has lapsed because of nonpayment of the premium after the grace period has ended. 

Renewable term 

A term policy that guarantees the policy owner the right to renew coverage at the end of the term, without presenting evidence of insurability. 

Rider 

A written addition or amendment to an insurance policy that adds or limits the benefits payable under the policy. Common riders are accelerated death benefits, accidental death benefits, automatic premium loan, guaranteed insurability, and premium waivers. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Surrender 

Terminating or canceling a policy before its maturity date and cashing in its cash surrender value. 

Underwriting 

The insurance company’s process for determining whom it will insure. 

Variable life 

A type of whole life policy in which the death benefit and the cash value relate to the investment performance of a separate account fund that the policyholder selects. The separate account assets are invested in bonds, money market funds, stocks, and other instructions. 

Waiver of premium 

A rider that suspends the payment of future premiums in the event you are disabled. What constitutes a disability varies. 

Types of Term Plans

Life insurance articles

Recent Articles
Popular Articles
Post Office Gram Suraksha Scheme Calculator

27 Jun 2022

A Post Office Gram Suraksha Scheme calculator is a useful online...
Read more
What happens if you stop paying life insurance premiums?

03 Jun 2022

Buying the best life insurance plan is a wise and learned...
Read more
Postal life Insurance Tax Benefits

26 May 2022

Postal Life Insurance is the oldest life insurer in the country...
Read more
How to Download PLI Statement Online?

24 May 2022

PLI or Postal Life Insurance was an initiative originally...
Read more
Is Life Insurance an Investment?

24 May 2022

The thumb rule to building wealth is to invest your money in...
Read more
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However...
Read more
How to Cancel SBI Life Insurance Policy?
As per the Insurance Regulatory and Development Authority, you can cancel a life insurance policy taken within 15...
Read more
PLI Santosh Maturity Calculator
Maturity calculators have proven to be one of the simple tools for digital-savvy insurance buyers. Postal Life...
Read more
SBI Life Insurance 50,000 per year Plan for 5 Years
Life insurance is not only about the financial protection of the family but also about working for life’s...
Read more
Surrender Value in Insurance
Have you bought a life insurance policy which is not as per your requirement? Are you planning to terminate the...
Read more
top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL