Life Insurance Glossary
“We RR Insurance Brokers Private Limited , welcome all stakeholders of Insurance
and Customers / Prospects in particular , to our office at Indraprakash Building
47, MM ROAD, RANI JHANSI MARG, JHANDEWALAN, NEW DELHI - 110055 to TEST our Competence
, KASH ( Knowledge , Attitude , Strength and Habit ) , People , Physical Factors
, Integration of 3I ( Institution , Instrument and Intermediation ) and the Process
of Insurance Broking & Risk Management Services to get the confidence on us
and also to verify our Performance vs Promices.”
Assignment means legal transference. A method by which the policy holder can transfer
his interest to another person. An assignment can be made by an endorsement on the
policy document or as a separate deed.
The person or party the owner of a life insurance policy names to receive the policy
Written request by an insured for the insurance company to cover an incurred loss.
An insurance contract is a promise to pay certain sums under certain conditions.
Making a claim is invoking that promise and if it is in accordance with what is
set out in the contract then it is admissible and can be payable if all other terms
and conditions of the contract are met.
Date Of Commencement
The date on which cover begins, following acceptance of the risk by the insurer.
Free Look Period
Within 15 days of the receipt of this Policy, the Policyholder may, if dissatisfied
with it for any reason, give the Company a written notice of cancellation along
with reason for the same, and return the Policy Document to the Company, subject
to which the Company shall send the Policyholder a refund comprising the first Regular
Premium paid less the proportionate risk premium for the period the Life Assured
was on cover and the expenses incurred on medical examination and stamp duty charges.
This provision offers the policy holder additional period of time after the due
date, during which the premium can be paid. The risk continues to be covered during
this period and claims will be serviced in case of death during this period.
A condition in which the person applying for insurance and the person who is to
receive the policy benefit will suffer an emotional or financial loss, if any untouched
event occurs. Without insurable interest, an insurance contract is invalid.
Termination of a life insurance contract because of non-payment of premiums. If
there are non forfeiture values, the policy lapses but may remain effective reduced
Life Assured is the individual on whose life the policy is taken.
The date on which an endowment insurance policy's face amount will be paid to the
policy-owner if the life insured is still living.
The probability of death of a life or group of lives.
Facts that may have a bearing on the decision by the insurer to give or not to give
insurance in a particular case, and what premium to charge.
An act by which the policy holders authorizes another person to receive the policy
moneys. The person so authorized is called Nominee.
This is the payment that a policyholder makes to a life insurance company to get
insurance cover. He or she has a responsibility to ensure that the correct amount
states is paid as and when it falls due as stated in the policy document.
The person who proposed to Insurance Company for taking Insurance Policy for other
This refers to the process where the policy that has terminated for example due
to a lapse of non-payment of premium and the owner has applied for the policy to
be reinstated and the company has agreed to do so on certain conditions.
Premiums that are payable after the initial/First premium and that are a condition
for the continuation of the policy.
Additional or supplementary benefits that are bought together with a main life policy
on the same life. In short, Additional covers that can be added to a life policy,
for a cost. Riders could be added, amended or deleted from the main policy, any
time, subject to risk assessment. Details and the terms and conditions of the benefits
are clearly indicated in the main policy document.
Sum Assured /Risk Cover
The lump sum benefit payable under an insurance policy or contract in circumstances
defined within the policy (usually it represents an amount payable on death).
The payment of sum assured to the insured person which has become due by installments
under a money back policy.
The surrender or cash value is the amount payable to the policyholder should the
policyholder decide to discontinue the policy. However, the insurance protection
provided under the policy will also cease. In other words, the amount payable by
the insurance company if you foreclose a policy after the premium is paid for a
minimum period as stipulated.
Almost Good Faith
The principle of almost good faith requires the applicant to disclose all material
This is the age when the rights under the policy vests with the name individual.
In other words, the age at which life assured becomes absolute owner of the policy,
which in the case of minors is 18 years.