Glossary of insurance terms

 

In insurance, these terms are often used:

 

Insurance policy

Letter of Agreement which contain the insurance agreement between the Insurer and the Policyholder.

 

Applicant

Applicant is the person who applied for an insurance. If the insurance has been approved then the applicant will become the Policyholder.

 

Policy Holder (Policy Owner)

is the holder of the insurance policy.

 

Insured

is, someone who becomes the object of insured or insured.

 

Beneficiary

Beneficiary are the persons or composed of several persons designated to receive insurance benefits or sum insured

 

Premium

is, a sum of money that is borne by the Insured and listed in the policy and has been approved to be paid to the Insurer as agreed.

 

Sum insured

The value of money stated in the insurance policy to be paid by the insurer to the Holder.

 

Cash value

is, a sum of money listed on the policy to be paid to the Policyholder if the policy is canceled before the end of the insurance period or when the insured dies.

 

Insurable Interest

 

is, the relationship between the insured and the object insured by the company, concerning the things that have great potential to cause harm that can cause financial loss for the Insured.

 

Also read:

Insurance Principles

Purpose and Function of Insurance

Kinds of Insurable Risks

How to Plan to Participate an Insurance Program

What is meant by Insurance

 

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