Insurance Domain - Part 2

In this part ,we are going to discuss about the insurance techinical terms.

Insurance :

In law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium.

In Simple word,Insurance is nothing but "Transferring Risk from Individual/Group to Insurance Corparate"

Insurance rate :
It's a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage.

Proposer :

Who raise the request to give the Insurance policy is called proposer.

Insurer :

Whos risk is tranfer from him to Insurance company is called insurer.

Proposal :

This is information collected ,for use in reporting to the Insurance Company.

It's a request from proposer to give the insurance policy.

A formal description of the creation, modification or termination of a contract is also called "Proposal". A proposal may serve as the blueprint for a future agreement and may be accepted or rejected by the entity or entities that receive it.

Policy :

Agreement/Contract with the Individual/Group and Insurance Company.This agreenment contains the rules and regulation about the risks.

This policy gives to Insurer,when the proposal process has completed.

Premium :

The periodic payment made on an insurance policy. also called premium.

Nominee :

Whose get the benifits after the death of Insurer/Life Assurer is called nominee.

Frequency :

Frequency is a measure of the number of occurrences of a repeating event per unit time.For ex : Yearly,Half Yearly,Monthly...

Term :

Refers to the maturity or length of time until final repayment on a loan, bond, sale or other contractual obligation.

Beneficiary :

The Beneficiary is the person named by the policy Owner in the Policy/Contract .(or in a Change of Beneficiary form).He can receive benefits upon the death of the insured or the plan participant.