Life Insurance Terminologies

An unforeseen and unintended event causing injury or damage.

Additional payout in case of permanent total disability; may include waiver of future premiums.

Minimum and maximum ages allowed for buying or renewing policies.

Licensed representative who sells and services insurance policies.

These plans offer a pension, or a combination of a lump sum and pension, to the policyholder or their spouse. In the event of both's death during the policy term, a lump sum amount is paid to the next of kin.

A document with personal and medical details for an insurance application.

Transfer of policy ownership to another person.

Person(s) or entity entitled to receive policy benefits upon the policyholder's death.

Coverage protecting businesses against key employee loss or other risks.

Policy that can be cancelled by either the insurer or insured.

The portion of the policy that earns interest and may be available to withdraw or borrow against.

The amount payable to the policyholder on voluntary policy termination before maturity, minus any loans or dues.

A formal request to the insurance company for compensation under the policy.

Steps involved in submitting and settling a claim.

Percentage of claims settled by the insurer in a financial year.

Can be converted to an endowment plan later.

Protection scope offered by an insurance policy.

The grace period offered by the life insurance companies in India is 15 days for monthly mode policies and 30 days for quarterly, annual, and semi-annual policies.

Amount paid to the nominee/beneficiary on the death of the life insured.

Waiting period before pension payments begin.

Sum paid to participating policyholders, usually in whole life policies.

Offer 2x or 3x sum assured on death within the policy term.

Fraudulent misappropriation of funds or property.

Pays the sum assured on death or policy maturity.

Specific events or situations not covered under the policy.

Coverage for unique, high-value or unconventional risks.

Reinsurance arrangement where risks are accepted individually.

Covers several family members under a single policy.

Person entrusted with managing assets for another.

Covers loss or damage due to fire and related hazards.

The initial period (usually 15 days) is to review and cancel the policy without penalty.

Lump sum paid to purchase annuity plans.

Used in LIC's Jeevan Dhara plans for monthly annuity.

Coverage for a group (e.g., employees), under one master policy.

Provide fixed, non-variable benefits.

Ensures compensation matches actual loss; no profit from claim.

Legal requirements ensure that the policyholder will suffer losses if the insured dies.

Risk level and health factors affecting coverage eligibility.

A Tool to manage financial risk through pooling and sharing.

Insurance company.

The person whose life is covered under the policy.

Coverage for two lives, paying out on first or second death, or at maturity.

The policy was terminated due to missed premium payments.

Premiums are paid for a limited years and lifetime coverage.

Extra benefits paid on policy maturity, depending on the insurer's performance.

End date of policy term when benefits are paid.

Age at which the life insurance policy terminates.

Guaranteed amount (plus bonuses, if applicable) paid at policy end.

Giving incorrect details during policy purchase.

Periodic payouts during the policy term and a lump sum on maturity.

Naming a person to receive the claim proceeds.

Individual designated to receive the death benefit.

Stay active as long as premiums are paid.

Reduced benefit if the policyholder stops paying premiums after a certain period.

Contract between the policyholder and insurer.

Individual who buys and owns the policy.

Extending the coverage term by renewing an existing policy.

Duration for which coverage is provided.

Regular payment made to keep the policy active.

Refund premiums if the policyholder survives the policy term.

Reactivating a lapsed policy by fulfilling insurer requirements.

Time allowed after the grace period to reinstate a lapsed policy.

A Beneficiary that the policyholder can change.

Optional add-ons for extended benefits, such as critical illness or accidental death.

The uncertainty of loss that insurance is designed to protect against.

The amount guaranteed to be paid on death or maturity.

Amount paid if the policyholder voluntarily terminates the policy before maturity.

Premiums are deducted directly from the salary.

Individuals with a higher risk profile due to health, habits, or lifestyle.

Instalment payouts during the policy term.

Term insurance offers coverage for a specific period, but no maturity benefit exists.

As per the Government of India, you can claim life insurance tax benefits under sections 80C, 80D, and 10(10D) of the Income Tax Act of 1961. These benefits are subject to change as per the prevailing tax laws.

Risk evaluation process to determine insurability and premium.

Permanent policy with investment component; growth not guaranteed.

The Age when pension payouts begin in retirement plans.

Covers entire lifetime; benefits paid on death.

Eligible for bonuses.

Not eligible for bonuses; fixed benefits only.