Premium
When you buy an insurance policy, you have to
pay a certain amount of money which is called premium. Insurance policy may be single premium where
you have to pay the premium at once or other like annual premium for which you
have to pay the premium every year.
Insurer
The insurance company that provides the
insurance is called the insurer.
Insured
The person on whose name an insurance is
bought is the insured.
Beneficiary
The person who is nominated to get the
insurance amount in case of death of the insured is known as the beneficiary.
Deductible
It is the amount of the claim that an insured
has to pay before the insurer pays the rest, used in regard of health, home and
auto insurance.
Sum
Assured
Also known as the coverage amount, sum assured
is the guaranteed amount of money that an insured will get from the insurance
company before the addition of any bonuses.
Maturity
Value
Maturity value is the amount the insured will
get from the insurance company when the policy matures. It includes the sum
assured and bonuses.
Exclusions
These are the particulars which are not
covered by the insurance policy. Make sure you read the policy agreement
carefully before signing on the agreement. Health, travel, home insurance does
have some exclusion clause.
Rider
Also known as endorsement this refers to a
clause added to your policy to insure you for risk not covered by the policy
for an additional cost.
Term
Term refers to the number of years the policy
covers you. If your policy lasts for say 15 years, then its term is 15 years
and it will cover you for that period.
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