What are the important life insurance terms that you must know?

1. Who is the Policyholder?

The policyholder is an individual who purchases a life insurance plan. If you are working and earning a salary, then you can purchase life insurance as a policyholder. However, if you do not have a source of income, you cannot buy a life insurance plan for yourself.

2. What is Sum Assured?

It means an amount as specified in the term insurance policy schedule, which is payable to your nominee upon your death. In other words, it is the life cover amount that the insurance company promises to pay your family in case of your unexpected death within the policy tenure.

The calculation of the maximum value of sum assured and required premium amount is based on your current income, selected policy tenure and the mode of payout.. You can use an online life insurance calculator to get an estimate of the Sum Assured and the premium amount payable that you can avail under a plan.

  

3. Who is a Nominee?

 

The nominee is the individual who receives the insurance plan benefit amount (the Sum Assured of the policy), after the death of the life insured. Therefore, the nominee should be a family member.

While you can include your mother, father, spouse, or child as a nominee, it is also possible to nominate relatives such as an uncle, aunt, and nephew.

Homeowners Insurance

When a mortgage is requested on a home, the homeowner is required to provide proof of insurance on the property before the lending bank can issue him or her a mortgage. The property insurance can be acquired separately or by the lending bank. Homeowners who prefer to get their own insurance policy can compare multiple offers and pick the plan that works best for their needs. If the homeowner does not have their property covered from loss or damages, the bank may obtain one for them at an extra cost. Payments made toward a homeowners insurance policy are usually included in the monthly payments of the homeowner’s mortgage. The lending bank that receives the payment allocates the portion for insurance coverage to an escrow account. Once the insurance bill comes due, the amount owed is settled from this escrow account. Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s house and to assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property. When a mortgage is requested on a home, the homeowner is required to provide proof of insurance on the property before the lending bank can issue him or her a mortgage. The property insurance can be acquired separately or by the lending bank. Homeowners who prefer to get their own insurance policy can compare multiple offers and pick the plan that works best for their needs. If the homeowner does not have their property covered from loss or damages, the bank may obtain one for them at an extra cost. Payments made toward a homeowners insurance policy are usually included in the monthly payments of the homeowner’s mortgage. The lending bank that receives the payment allocates the portion for insurance coverage to an escrow account. Once the insurance bill comes due, the amount owed is settled from this escrow account. 

Insurance Market

Insurance Management
Basics 

Insurance products are available to protect consumers and businesses seeking risk management benefits. Businesses buy insurance to protect their businesses from business loss and customer claims. Consumers buy insurance to cover losses of valuable items like homes, cars, boats, jewelry and many more.

Types of Providers

Three types of providers exist within the insurance management sector according to Wise Geek. They are "insurance brokers or consultants, dedicated insurance firms and financial institution insurance." Each performs specific insurance management functions.

Services

Brokers have the most contact with consumers and help connect buyers with insurance firms that specialize in certain products or sectors. Financial institution insurance companies do not provide insurance for public purchase. Their services are more related to risk management, debts, and assets.