The Life assured
In insurance, this term refers to the person whose life is covered. In the event of untimely death or injury of this person, a claim is payable.
Beneficiary
This is the person, nominated by the life assured, who will receive the sum assured in case of death of the life assured.
Sum assured
This is the amount payable by the insurance company to the life assured on maturity of the policy, or to the beneficiary of the life policy in case of death of the life assured.
Bonus
This is the amount added to the sum assured, declared annually by the insurance company, representing the excess of the actual investment return over the expected return.
Rider:
This the extra, additional or supplementary benefit which is added to the main product.
Assignment
This is the transfer of ownership rights under the policy from the policyholder to another person
Automatic premium loan
This is an amount charged to the loan value of the policy to pay the full or part of the premium due
Basic sum assured
This is the amount of life insurance selected by the policyholder stated in the policy specification schedule or as later changed in accordance with the terms of the policy
Benefit
This is the amount payable under the policy or under any rider contract attached to this policy
Contract
This is the policy, and other written submissions and any supplementary contract applied for which is attached thereto and stated to be a part of the policy
Maturity value
This is the value on the maturity date or on the elective maturity date (as the case may be) less any outstanding loan.
Maturity date
This is the date on which the maturity benefit under this policy is payable. Maturity date and maturity benefit are defined in the policy
Outstanding loan
Means the total amount of the policy loans including both principal and accrued loan interest
Policy document
This represent the booklet you are given that has the terms and conditions of the agreement between the insured and the insurer.
Proposal form
This is a written application for insurance on the company’s forms signed by the policyholder to purchase benefits under the policy and under any supplementary contract attached to the policy. Copy of the policy application is available to the policyholder upon request
Commencement date
This is the date on which the policy takes effect.
Policy schedule
This is a schedule signed by the company and attached to the policy which includes the identification of the policyholder, the assured, the policy date, the sum assured, the supplementary contacts and other information
Policyholder/Assured
Means the purchaser and owner of this policy as shown in the policy application, unless his/her identity is later changed in accordance with the terms of this policy, the policyholder/assured may be someone other than the life assured
Premium
The amount stated in the policy schedule, payable by the policyholder to the company in respect of the policy and in respect of the rider contracts
Reinstatement/revival
Means the restoration of a lapsed or reduced paid-up insurance policy to a premium paying status. Reinstatement/revival is subject to the company’s consent and requirements as provided in the policy and restores the benefits previously provided under the policy
Substandard risk
This means a life assured that has been charged an additional premium due to some form of medical impairment or occupational risk
Surrender of the policy
Means the option whereby the policyholder voluntarily discontinues his policy in return for its cash value less any outstanding loan.
Premium paying term
This is the duration in years over which premiums require to be paid before maturity date
Policy term
This is the duration in years from commencement date to maturity date of the policy
