In life insurance, often we will find a variety of foreign terms that may be abru first time we heard. In order not to be confused, it helps you learn the various terms contained in the insurance.
Here are some important terms in insurance and their meanings:
1. Waiting period – waiting period. Ie certain amount of time that must pass before an insurance protection is enforced. For example, a few months before the hospital can claim protection. As a wise customer, we ought to study the waiting period so that we know that the protection contained in the insurance policy that we have not necessarily apply as soon as we get it. This waiting period is also important to learn for policyholders who intend to cover the policy and replace it with other insurance products of the company are the same or different. By considering the waiting period, then we will always be under protected conditions. Remember the principle that risks can occur at any time without our knowledge, although only in a few months waiting period.
2. Grace Period – The grace period. That amount of time in which a value premium is not paid beyond the due date, but the insurance protection is still valid. In contrast to the ‘waiting period’, Grace period is a compromise form of insurance that provides a certain grace period to policyholders to fulfill its obligations that pay insurance premiums in particular a considered no longer a protection force or a policy lapse status. This period usually lasts from 30 to 45 days from the time of maturity.
3. Provision – Waiting period or grace period is two examples of the provision of insurance. Provisions are provisions, the rights and obligations of the various parties involved in an insurance contract. The goal is that the contract has clear rules for the protection of policyholders and insurers from irresponsible.
4. Agent – In this case the insurance agent, is the person or legal entity who sell insurance on behalf of the insurance company where he worked. Each agent represents and is responsible to the insurance company.
5. Underwriting – It is the process by which an insurance company decides whether to issue a policy that is requested by a prospective customer or not. In the underwriting process, the insurance company will determine the terms and conditions as well as the amount of the premium rate charged. Parties that this process is referred to as the underwriter. For additional information, insurance agent is the first underwriters because he became the only person who met with prospective customers and assess the feasibility of such candidates. Furthermore, there are two underwriters assess the financial and medical.
6. Rider – additional insurance that contains a set of specific provisions in the basic life insurance policy, which can be optionally added to strengthen and complement the benefits of the policy coverage basis.
7. Claim – A claim filed by the policyholder or beneficiary or heir to an agreement wahli listed in the insurance policy since it was published. When a claim arises, the insurance company must carry out the obligations contained in the insurance policy based on the provisions in force.
8. Lapse – The conditions under which an insurance policy is in inactive status. Usually occurs if the policyholder pays the premiums negligent or has passed the specified grace period. In this case, an insurance policy in the state lapse, all the protection that is in it no longer applies.