Accident
An event or series of events, which are unforeseen, involuntary, external and visible in nature and which causes bodily injury.
Accidental Death Benefit Rider
An optional addition to your life insurance policy that pays a benefit to the beneficiary of a life insurance policy in addition to the death benefit should death be due to an accident.
Additional benefit
The benefit which becomes applicable on the Death or Total and Permanent Disability of the life assured as specified in the plan
Age
Age as on his/her last birthday.
Agent
An insurance company representative licensed by the state who solicits, negotiates or effects contracts of insurance, and provides service to the policyholder for the insurer.
Age Limits
Stipulated minimum and maximum ages below and above which the company will not accept applications or may not renew policies.
Annuity Plans
These plans provide for a "pension" (or a mix of a lump sum amount and a pension) to be paid to the policy holder or his spouse. In the event of death of both of them during the policy period, a lump sum amount is provided for the next of kin.
Application Form
Supplied by the insurance company, usually filled in by the agent and medical examiner (if applicable) on the basis of information received from the applicant. It is signed by the applicant and is part of the insurance policy if it is issued.
Appointee
The person who receives the proceeds or the benefits under the plan when the nominee is less than 18 years of age.
Appreciate
To grow in value.
Asset
Everything owned or due to a person.
Asset allocation
How your investments are spread across various asset classes.
Beneficiary
In a life insurance policy, the person or entity named to receive the death benefit.
Benefit illustration
An illustration of the benefits under unit linked insurance plans provided to you at the time of application.
Bodily injury
An injury which is evidenced by external signs such as contusion, bruise or wounds except in cases of drowning or internal injury.
Budget
It is a tool used to monitor and control expenditures and purchases.
Charges
Any fee that may be levied by the insurance company from time to time under this plan with the prior approval of the Regulatory Authority.
Child Rider
An optional addition to your life insurance policy that covers dependent children.
Coinsurance
A provision under which an insured who carries less than the stipulated percentage of insurance to value, will receive a loss payment that is limited to the same ratio which the amount of insurance bears to the amount required.
Compound interest
Interest computed on principal plus interest accrued during the previous periods of the investment.
Contingent Beneficiary
An alternate beneficiary listed on an insurance policy who will receive the benefit if the primary beneficiary is deceased. This is sometimes referred to as a "Secondary Beneficiary."
Corpus
The amount of money available with a scheme for investing. If already invested, the corpus is the current value of the scheme's portfolio.
Cost averaging
A strategy that involves investing a fixed amount of money in an asset class like equity, so that the average cost of acquiring the asset in the long term is much lower than that in the short term.
Cover
Another word for insurance; it also refers to the amount of insurance.
Date of risk commencement
The date from which the death benefit is activated under the plan as specified in the plan schedule.
Death benefit
The amount which is payable on the life assured's death.
Dependent
A person who relies on you for support.
Discontinuance of plan
Terminating or cancelling or stopping the plan prior to the plan maturity date. Discontinuance of a plan will occur in case of non-payment of the premium due before the expiry of the notice period or if you wish to discontinue the plan.
Endowment Policy
The assured has to pay an annual premium which is determined on the basis of the assured's age at entry and the term of the policy. The insured amount is payable either at the end of specified number of years or upon the death of the insured person, whichever is earlier.
Equity
The actual ownership interest in a specific asset or group of assets.
Exclusions
Specific conditions or circumstances for which the policy will not provide benefits.
Financial planning
It covers the essential elements of a person's financial affairs and is aimed at achieving a person's financial goals.
Free Look
Provision required in most states whereby policy owners have either 10 or 20 days to examine their new policies at no obligation.
Fund
Each specific and separate investment fund established, offered, operated and managed by us.
Funeral Costs
Fees associated with the death and burial ceremonies of a person including things like a casket, grave stone, cemetery space, funeral home, religious official, flowers and other items.
Insurance
Coverage by contract whereby one party indemnifies another against a specified type of loss.
Investment risks
The risks that your investments face. These include the risk of interest rate fluctuations impacting your debt investments or the prices of equities going down.
Investments
Assets like fixed deposits, post office savings, bonds and stocks that are acquired for the purpose of earning a return.
Key-man Insurance
This is a policy taken by an employer on the lives of its important employees, on whose life the business is dependent upon.
Lapsed Policy
A policy, which has been terminated due to non-payment of premium dues and hence is no longer in force.
Life assured
The person named in the plan schedule and, on whose life the plan depends. On the life assured's death, the benefit is paid out by us and the plan ends.
Limited premium
The amount which is payable by you during the premium paying term at regular intervals for a limited period as specified in the plan schedule.
Liquidity
The quality of assets that can be easily and quickly converted into cash without any, or significant, loss in value.
Lock-in period
The period of time for which investments made in an investment option cannot be withdrawn.
Lump Sum Payment
A single payment - either payment for the total amount due to the beneficiary or a single premium paid to fully fund an insurance policy.
Maturity benefit
The amount payable to you on the plan maturity date.
Nominee
The person nominated by you to receive the death benefit.
Plan commencement date
The date on which the plan starts as shown in the plan schedule.
Plan maturity date
The date on which the plan term expires as specified in the plan schedule.
Plan term
The period which commences on the plan commencement date and ends on the plan maturity date as specified in the plan schedule.
Plan year
A period of 12 consecutive months commencing from the plan commencement date and ending on the day immediately preceding its annual anniversary and each subsequent period of 12 consecutive months thereafter during the plan term.
Premium
The price of an insurance policy, typically quoted on an annual, semi-annual, quarterly or monthly basis.
Premium paying term
The number of years, during which you will pay the regular or limited premium as specified in the plan schedule.
Proposal form
The application form completed and submitted by you based on which the insurance plan will be issued to you.
Regular premium
The amount which is payable by you during the plan term at regular intervals as specified in the plan schedule.
Regulations
The applicable laws as amended from time to time which are applicable to the plan, its funds, the valuation of investments and other assets.
Regulatory authority
The Insurance Regulatory and Development Authority or such other authority or authorities, as may be designated/appointed under the applicable laws and regulations as having the authority to oversee and regulate life insurance business in India.
Rider
An optional addendum to the insurance policy which can provide additional benefits under certain conditions.
Secondary Beneficiary
See “Contingent Beneficiary”.
Settlement option
The option to receive your maturity benefit in instalments over a period of time instead of a lump sum amount on the plan maturity date
Single premium
The amount that has been received by the insurance company as specified in the plan schedule before the plan commencement date.
Suicide Clause
Most life insurance policies provide that if the insured commits suicide within a specified period, usually two years, after the issue date, the company's liability will be limited to a return of premiums paid.
Sum assured
The amount of cover taken under a life insurance plan. It is the minimum amount that will be paid on the life assured's death during the plan term and is specified in the plan schedule.
Survival Benefit
This is the payment of the sum assured to the Insured by the Insurer through instalments. This usually is the case with a money-back policy where, the Insured enjoys the benefits of surviving the contingency (e.g. death).
Term
The length of time for which an insurance policy remains effective.
Term Life
A type of life insurance that covers the insured for a specified period of time.
Universal Life
A type of permanent life insurance where the premium and benefits are adjustable
Valuation date
The date on which the unit price of the fund is determined.
Variable Life
A type of life insurance where the premium and benefits are adjustable and the policy holder may assign the premium payments to a specific and separate investment account, similar to a mutual fund.
Waiting period
The 6 months following the date of onset of Total and Permanent Disability due to accident of the life assured. The additional benefit specified in the plan becomes payable only after the completion of the waiting period.
Waiver of Premium (total disability) Rider
A rider to an insurance policy providing that the policy and coverage will remain in effect for a specified period of time. In the event the insured becomes totally disabled during that time, the insured does not have to make premium payments.
Whole Life
Life insurance which provides coverage for an individual's whole life, rather than a specified term. It includes a savings component, called cash value that builds over time and can be used for wealth accumulation.