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Understanding the key life insurance terminology helps us further understand the various advantages and characteristics of a policy. Various insurances terms like “Maturity Benefit” or “Grace period” are being used and you should know what they all mean if you are interested in life insurance.
Understanding these terms help guide you when you are about making crucial decisions concerning insurances. Below is the list of 8 important life insurance terms and their meanings.
• PREMIUM
It is a sum paid monthly or yearly to keep your insurance policy alive. If you are unable to pay the premium before it’s due date or within the grace period, your policy might elapsed.
It depends on various factors like:
•Policy tenure
•Age of life assured
•Lifestyle habits such as smoking/drinking
• GRACE PERIOD
When an extension is given to the insurer by the insurance company after the premium payment due date. When the policy holder pays the outstanding premium amount , then the policy cover continue.
•SURRENDER VALUE
When the policyholder decides to stop the plan before the due date, the life insurance company pays an amount called “surrender value” to the policyholder.
•UNDERWRITERS
These set of people access the risk involved in insurance.The process of risk evaluation starts before the issuance of insurance policy, and ends with settlement of the claim.
After the underwriter has approved, then a policy is issued to the policy holder.
•TAX BENEFITS
All premium that is paid towards life insurance is liable to be taxed according to Section 80c of income tax act, 1961 while the benefits paid back to the policyholders are tax-free according to Section (10D) of income tax act, 1961.
• EXCLUSIONS
Before you agree to what seems like an amazing offer, go through the exclusion carefully. In such cause of death like suicide, family members cannot claim insurance benefit.
• DEATH BENEFIT
You will see the term death benefit often when going through a life insurance form. Death benefit simply refers to the benefit the nominee acquires in case of death of the policy holder. Death benefit can be the sum assured or even higher than it and may include other bonuses and more benefits.
•SUM ASSURED
This is the appropriate term used to address the sum of money to be paid on occurrence of death of the insured person.The sum assured is chosen by the policyholder at the time of purchase. To know more and to choose the right coverage, read this.
Life insurance provides a life cover to the insured, in case of death, the sum assured is the amount to be paid to the nominee.
•POLICY TENURE
This is the period of time in which the policy provides cover against financial loss. This period can last from 1 year to 100 years depending on the type of insurance plan and it’s terms and conditions.
Now that you’re acquainted with the various benefits a life insurance policy can provide, make the best decisions.
Number 9
5 KEY REASONS WHY YOU NEED A TRAVEL INSURANCE.
If you are getting ready to travel, nothing beats having peace of mind than having a travel insurance.
Since insurance protects us from uncertainties by saving the day with much needed compensations or reimbursement, then there is every reason why you should have one for traveling. When you travel, lots of things can frustrate from losing your luggage or being cash trapped, travel insurance got you.
Travel insurance just like it’s name connotes is the type of insurance that protects you from the financial dangers of traveling. When you are about embarking on a work or pleasure-filled trip, making sure you’re covered in case of unwanted circumstances like; accidents or property damage, should be your first priority.
There are a lot of things that could go wrong for something as simple as traveling; you may fall sick, there might be a delayed flight or missed flight, money loss, unplanned expenses and many more.
5 KEY REASONS WHY YOU NEED A TRAVEL INSURANCE.
1.UNPLANNED MEDICAL EXPENSES
It doesn’t matter how carefully you plan, certain things are beyond our control. Getting sick in a faraway country when you are cash trapped could mean trouble.The financial cost of such medical expense may leave you in a tight spot, this where a travel insurance plays a vital role.It essentially provides coverage for medical emergencies.
Without this plan, this unplanned situation may lead to frustration and worry.You may need to forestall future arrangements and cancel the trip because of this. With the right Insurance plan, everything can be settled within minutes.
2. CHANGES IN TRAVEL PLAN
Something might come up and halt travel plans. Without any travel insurance, you wonder how you would reschedule your vacation or if it’s all gone. You may need to cancel your trip arrangements from time to time. What are the odds that you won’t be able to take the trip you’ve anticipated for months.
Having travel insurance means that you can use trip cancellation coverage if something unexpected happens, you may get your money back or reschedule your vacation. Travel insurance serves as a safety net.
3. STOLEN, LOST AND DELAYED BAGGAGE.
You can regain all stolen, lost or delayed baggage with personal baggage coverage when you are traveling. Such Insurance compensates you immediately and you can replace all your personal belongings lost on the way.
If baggage is delayed or misdirected for 24 hours or longer, baggage delay benefit plan pays you a substantial amount to enable you purchase items lost. Based on the restrictions in your insurance policy, baggage loss or damage benefits can compensate you for the real price, actual cash worth, repair, or replacement of your lost or damaged things, whichever is less.
4. DELAYED FLIGHT
Flight delays or rescheduling are pretty normal these days. A flight delay or reschedule can turn your plans upside down.Even if all this is beyond your control, for example when a flight is cancelled, you are required to accept lodgings on your own expense. These expenses can be reduced or totally taken care of with travel insurance.
When you acquire travel insurance with travel delay benefits, you get access to financial compensation that takes care of unexpected lodging expenses.You’ll be a lot happier if you have insurance that will pay for your airport meal or an unplanned additional night in a hotel.
5. CANCELLED TRIP
The most sought-after travel insurance package. The fear of cancelation of trips which results to loss of money they have already paid for, is a core reason why people invest in travel insurance.
One of the most compelling reasons to get travel insurance is the protection of trip cancellation rewards. When you must cancel for a covered cause, they can compensate you for planned, nonrefundable travel fees. When you get your money back, you may reschedule your vacation for a brighter day.
If you are traveling for holidays or a business trips, secure your travel insurance today.
