It's so easy for one choosing an insurance policy to be confused. The language can be quite overwhelming, and one may get bewildered and go for that that the agent recommends. One can use the reference materials to find on the meaning of these insurance terms, but should at least know on the basic terms, which are as below.
Insurer and insured. An insurer is the company providing the insurance. The insured, on the other hand, is the individual whose is the holder of the policy, or has protection by the insurance policy. One who may get the insured amount in case of one's death is the beneficiary. One has to name him or her as the nominee.
A deductible is that amount, which one agrees to pay before the insurance pays the rest. This term is mostly in health, dental, home and auto insurance policies. One can choose a lower or higher deductible. Choosing higher deductible cut back the amount to be paid by one on insurance since one consents to pay a bigger part of his or her loss.
Bonus is the amount the owner of the policy gets, additionally of the sum guaranteed. Insurance firms add reverse bonus to the policy all through the term of the policy. Policyholder gets the Payments at a guaranteed sum at the end of the policy. It could be a with- profit bonus, which is the amount the company gives in case it makes for a profit, or guaranteed bonus, which is the amount the company pays regardless of its profit.
The premium is that amount one pays to get insurance. One can generally pay each month, quarterly or yearly dependent on ones preference. The premium amount may keep changing over a period of time thus is not a fixed amount.
Exclusions are those events which the policy does not cover. It's important for one to read on the policy carefully to understand what the policy covers not and what it covers. For instance, a travel policy may exclude claims put forward by one who travel to a high-risk country or home insurance may exclude claims of some water damage types.
Sum warranted and maturity price are the assured amount one will get is sum guaranteed. It is the sum of money that, an insurance policy guarantees to pay, before adding any bonuses. The other name is the coverage. Maturity value is that amount that the insurance company will need to pay one when the policy matures. This includes on the bonuses, and the sum assured.
A claim is the official notice one provides to an insurer requesting get a pay for a loss or under the insurance policy cover. Insurance companies then will carry out claim investigation. This is a method used to get the info required for the insurers to choose whether to pay a claim or not.
To conclude, insurance terminology if well accepted by one can bring good decision on the policy one should pick on and the insurer. One has to at least have knowledge on the basic to be on a save side since most agents will only take advantage. Familiarity with these terminologies is then important for one.
Insurer and insured. An insurer is the company providing the insurance. The insured, on the other hand, is the individual whose is the holder of the policy, or has protection by the insurance policy. One who may get the insured amount in case of one's death is the beneficiary. One has to name him or her as the nominee.
A deductible is that amount, which one agrees to pay before the insurance pays the rest. This term is mostly in health, dental, home and auto insurance policies. One can choose a lower or higher deductible. Choosing higher deductible cut back the amount to be paid by one on insurance since one consents to pay a bigger part of his or her loss.
Bonus is the amount the owner of the policy gets, additionally of the sum guaranteed. Insurance firms add reverse bonus to the policy all through the term of the policy. Policyholder gets the Payments at a guaranteed sum at the end of the policy. It could be a with- profit bonus, which is the amount the company gives in case it makes for a profit, or guaranteed bonus, which is the amount the company pays regardless of its profit.
The premium is that amount one pays to get insurance. One can generally pay each month, quarterly or yearly dependent on ones preference. The premium amount may keep changing over a period of time thus is not a fixed amount.
Exclusions are those events which the policy does not cover. It's important for one to read on the policy carefully to understand what the policy covers not and what it covers. For instance, a travel policy may exclude claims put forward by one who travel to a high-risk country or home insurance may exclude claims of some water damage types.
Sum warranted and maturity price are the assured amount one will get is sum guaranteed. It is the sum of money that, an insurance policy guarantees to pay, before adding any bonuses. The other name is the coverage. Maturity value is that amount that the insurance company will need to pay one when the policy matures. This includes on the bonuses, and the sum assured.
A claim is the official notice one provides to an insurer requesting get a pay for a loss or under the insurance policy cover. Insurance companies then will carry out claim investigation. This is a method used to get the info required for the insurers to choose whether to pay a claim or not.
To conclude, insurance terminology if well accepted by one can bring good decision on the policy one should pick on and the insurer. One has to at least have knowledge on the basic to be on a save side since most agents will only take advantage. Familiarity with these terminologies is then important for one.
About the Author:
Spalding Scattergood, the writer, thanks Westerville insurance agent Mark Portale for his insights on insurance policies.
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