Life Insurance Terminologies

Life Insurance terminologies There are 16 points to know before buying a life insurance plan important term of life insurance the first is policy holder the policy hotter also called a policy owner is an individual who purpose the purchase of the life insurance plans and pays the fixed amount premium regularly he or she is the owner of the policy and the number two life assert life assert is the person who is insert or forumed the life insurance is purchased to cover the risk of unforeseen to mice mainly he or she is the sole earner of the family life answered may not be the policy order and number three is nominee a nominee is an individual individual who receive life cover.

When the life assert dies during the policy term this is mainly selected by the policyholder who is generally a close relative of our family members and the number four is some assert some assert is the sum that the insert pays to the beneficiary or nominee on the life assert death for instead if you buy a term insurance plan and Pro propose your wife as the nominee or better visery you will have to choose a sum assert at the time of buying and the number five is policy Term Policy policy term is the duration for which the life insurance plan is valid or active this can vary from and one policy to another and can vary an anywhere between 1 to 100 years or lifetime depending on the types of life insurance policies and their tmcs is also called policy tenure and then number six premium it is the fixed amount that a policyholder is required to pay to the insurance provider and the change of the insurance life cover you can select different premium payment term insurance such as only quarterly yearly and Etc and then number seven is premium payment method or turn it refers to the different slab of option in which you can pay the premium amounts to the insert primarily there are three types of mode of payment the versus regular pay limited pay and single pay and the number eight is death benefit. 

This benefit is the total amount paid by the insurer to the nominee in case of the policy holder gmails this amount is equivalent to the sum assert and the number nine majority benefit amount is the total sum received in the case of the policy holder of lives the policy tenor and the number 10 Riders writers are the additional benefits to your current base term insurance plan which can be uh purchased at the time of issuing the policy some of the writers available with life insurance plans are accidental death benefit writers critical illness recover as a general total and disability and the benefit writer is waiver of permium income benefit and child support benefit and the number 11 is climb in case the life assert passed away during the policy term the answer doesn't pay the live cover amount directly to the nominee and the number 12 Free Loop period thrill period is the time during which policyholder can choose to return the purchase plan if you are not satisfied with the tea and CS you can request for returning the plan within the free look time and then number 13 grace period if you fail or couldn't pay premium on time the company will provide you with an additional number of this called the grace period and the number 14 surrender value it is if the policy holder wants to discontinue the plan before the maternity age the company pays an amount to the policy holder which is called the surrender value and number 15 paid up value if a policy holder decides to discontinue paying premium after a fixed period companies will provide an option to cover the plan to reduce Panda plant and then the last one number 16 Revival times as discussed in the Press parent section if the policy holder doesn't pay the premium during the cruise time the plan collapses however the company provides an option to revive the last plan if the policyholder still wants to continue with the plant called the Revival barrier okay that's for the day thanks for watching see you till the next article and bye

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