The term ‘insurance coverage’ means, when an individual takes an insurance policy the insured will be covered by the insurance company for a specific amount for themselves or the things that they had taken the insurance policy for. The insurance company will pay the insured in case of damage or claims made by the insured according to their ‘insurance coverage.

It is the amount to be paid for a contract of insurance to the insurance company. It is the sum that a person pays monthly, quarterly or annually according to their plan, in return for the coverage he/she has taken from the insurance company.

The insured is the one who holds the policy and the Insurer is the company that covers the insured.

The beneficiary is the one whom you have nominated for the insured amount in case of your death.

‘Contestable period’ is usually 1 or 2 years, during which the insurance company holds all the right to investigate the policy and decide whether to pay or not to pay to the insured.

‘Revocable beneficiary’ designation gives the right to the policyholder to change the beneficiary name without the consent of the named beneficiary. While in ‘Irrevocable Beneficiary’ the policyholder has to take the consent of the beneficiary before the name is changed.

No claim bonus is a benefit for those who have not claimed insurance during the preceding year of cover. This will lower the premium in the following year.

‘Declaration page’ in an insurance policy, bears all the information of the policyholder like name, address, vehicle information, type of coverage and loss payee information.

A loss payee is a person or institution (Bank) that receives the insurance payment on the loss of the property or vehicle you own. It is a legal definition used to cover the investment of other parties or bank that is owned by you.

A deductible is one of the several types of clauses that are used by the insurance company as a threshold for policy payment for health insurance or travel insurance. A deductible is a decided amount that you have to pay from your pocket while claiming the insurance. For example, if you have a deductible of $500, and you have insurance coverage for $2000, then you are responsible for paying $500 and the remaining amount of $1500 will be paid by the insurance company.

Co-insurance term is usually referred to health insurance companies. In this type of policy, you share the coverage with, the insurance company in the percentage of the policy value, after paying the deductible or co-payment. It is the split of insurance coverage between you and the insurance company; usually, the split would be 80/20 % where you are liable to pay 20% and the remaining amount by the insurance company.

An annuity is a term used for the regular amount paid by the insurance company to the insured, after a certain period of time. The payment can be monthly or quarterly, this is often done to supplement income after retirement.

Surrender Value is the amount when you stop paying the premium and withdraw the entire amount. The policy ceases as soon as you withdraw the money, and the insured will lose out on all the returns on it.

The paid value is something when the insured stops paying the premium but do not withdraw the amount. The sum assured by the insurance company is reduced proportionally depending on when the insured has stopped paying the premium. You will get the amount at the end of the term.

If it is not a long duration that you have bought the policy, then you can replace the policy. But in another case, it is not advisable as you will lose all the benefits of the previous policy also the premium will go high as you go older. Also, the two-year period of contestability will also begin again.

In order to claim the policy, you have to fill up the claim form and contact your financial advisor from whom you have bought the policy. You have to supplement all the required documents like the original payment receipts to your insurance company. If everything is ok, you will be paid within seven days of the policy being claimed.

Usually, the Insurance Company gives a grace period of 10-15 days to the insured if they fail to pay the premium before the due date. Further, if you fail to pay a premium, then your policy will lapse. You can revive your policy by paying the outstanding premium along with the interest, counted from the date the policy got lapsed. Different Insurance Company has different norm for reviving the policy. However, if your policy is in force for a longer period say more than 2-3 years, and if you fail to pay a premium, then the insurance company will deduct the premium amount from your accumulated funds, especially in permanent life insurance. This will continue till there is an available fund after which your policy will be terminated.

It is safe to pay the premium through your agent as far as you are making the payment through cheques in the name of the Insurance Company and receiving all the receipts for the payments.

‘Free Look Period’ is a time period where the insured can cancel their newly bought policy in a specific period of time from the date of issuing the policy without any penalties or surrender charges. Yes, it is possible to get the full payment in a free look period. you can cancel your new policy in 15 days by returning the policy to the life Insurance company after you receive all the documents related to the policy.

The participating policy is a policy, where the profit or benefits of the insurance company is shared with the insured in the form of a dividend or reversionary bonuses. While, the non-participating policy, does not share its profit with the insured.

Certain Insurance companies have a provision of Limited Premium Payment, through which you can pay the premium in 3, 5, 7 or 10 years depending upon your income, and you still can have the coverage for the entire tenure of the policy.

It is possible to claim if the beneficiary has a court declaration that says that the insured person is missing or legally dead (disappeared for more than 7 years).

Yes, an individual can take two policies and claim for both.

‘Additional Insured’ is the status associated mainly with property insurance and liability insurance. The additional insured will be protected under the main policyholder. For example, a vehicle insurance policy covers all the members of the family and not only the owner.