Important Health Insurance Terms

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Important Health Insurance Terms to Know
Life Insurance is highly important in terms of
having your financial future secured. It is
important that you opt for a policy or a plan
that meets your needs. 
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Some important basic terms that will help you in
understanding Life Insurance better

• 1) Beneficiary
• People who have been named in the policy to
  be eligible for getting the earnings of your
  policy, after your death.
• 2) Cash or Surrender Value
• The cash amount against which you can get a
  loan and which is available for withdrawal in
  case of urgency. If you choose to use this value,
  your death benefit goes down and increases the
  likelihood of policy lapsing.
• 3) Sum assured
• It is the smallest amount assured to the
  policy owner. It plays an important part in
  deciding the amount paid as premium. In case of
  your death, the policy holder gets minimum of
  this amount.

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• 4) Premium
• The amount you have to pay to the insurer
  so as to avail life insurance protection. It
  depends on your age, kind of insurance
  policy selected and your health status.
• 5) Endowment policy
• A policy which is a combination of
  life insurance protection as well as investment.
  It invests money in debt instruments. The life
  cover is in vogue till the policy matures.
• 6) Policy term
• Period during which you have to pay premiums
  to enjoy life insurance protection
• 7) Term policy
• A policy providing just the life covers without
  any investment aspect. There are no returns on
  this policy, making it the cheapest policy.

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• 8) Whole life policy
• A policy providing life insurance
  protection till your death, as well as returns on
  the premiums paid. The premiums are invested in
  different debt instruments.
• 9) Unit link insurance policy
• A policy with life insurance protection and
  returns on the premiums paid. Here you invest in
  debt, equity or a mixture of both. Policy holder
  has the option of deciding where his premiums are
  invested. This is one of the most expensive
  insurance plans in the market.
• 10)  Policy holder
• A policy providing just the life covers
  without any investment aspect. There are no
  returns on this policy, making it the cheapest
  policy.

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• 11)Paid-up policy
• A policy that is in vogue but there are no
  more premiums paid.
• 12)  With profits policy
• A policy where the insurance company awards
  the policy holder a part of its profits as bonus.
  Bonuses can be either yearly or on the expiry of
  the policy
• 13)   Policy loan
• A loan given by the insurer to the policy
  holder from its general funds. It uses the
  policys cash value as collateral for the loan..

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Thank You
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