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| Glossary |
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- Beneficiary - the name of the person in the policy who will receive fund if the insured dies.
- Application - Form that have to be filled by Insured candidate and policy holder candidate when proposing insurance life protection to insurer
- Cash Value/Surrrender Value – Total cash received by the policy holder when he/she liquefied their life insurance policy that had benefit cash fund.
- Claim – Request from the policy holder to the insurance company to pay their sum insured according to the policies requirement.
- Contestable Period – Two years period where the insurer has a mandate to investigate the truth that given by the insured or policy holder based on the application letter, to decide the continuity of that policy.
- Investment-linked Plan – Premium payment is being used to buy the benefit of insurance life protection and some portfolio unit on investment fund. The unit price depends on the performance of investment fund
- Lapse - Loss of benefit or policy which is caused by delay of premium payment or payment has passed the Grace period.
- Lapse Notification - Written announcement from Insurer to policy holder that the policy had lapsed.
- Maturity Date – agreed date when the insurance company paid a sum of cash
- Medical Check up – Check up healthiness of the policy holder candidate.
- Minor - Someone who is under aged; under 21 years old and has not been married.
- Recovery - Change back policy status from lapse to inforce again, to recover the benefit or insurance.
- Insurer - Insurance company that provides insurance protection through agreement in insurance contract.
- Policy Lapse – desist the insurance coverage as a consequence from the deferral premium payment.
- Policy – Agreement letter which contains life insurance contract between insurer and the insured.
- Orphan Policy - A policy which no longer has an active agent.
- Active/ Inforce Policy - Insurance Policy in which the premium payments are according to the agreed time limit or have been fully paid
- Automatic Premium Loan (APL) - Automatic premium loan that is taken from policy cash value (as long as the cash value is enough) for paying premium that have not been paid the cooling off period (not valid for Unit Link Insurance policy).
- Premium Notice - A letter of notification from insurer to policy holder that some amount of premium is approaching due date.
- Premium - An amount of money that has been determined in policy to be paid to the insurer for some benefit, which is written in the insurance contract.
- Regular Premium Policy – Policy in which the premium has to be paid periodically such as monthly, quarterly,, semi-annually or annually.
- Rider – Rider is the additional benefit in basic insurance program, such as whole life plan program or endowment program. This benefit is designed to give the additional financial protection economically
- Risk Based Capital – Ratio to gauge the health and the financial security of the insurance company based on the ability of their asset to cover potential loss.
- Single Premium Policy – Policy that required only one settlement down payment.
- Sum Assured – Total sum insured given to a policy holder
- Surrender - Policy that is sold to insurer with the amount equal to cash value that formed when policy selling is conducted.
- Insured - A Person whose life/health is insured in an insurance contract.
- Face Amount - An amount of money, which was declared in the pages of the policy that is going to be paid in the case of death or other policy conditions, which will be paid when the insurance period is finished according to the type of insurance. Not including additional amount that will be paid for other special condition.
- Underwriting – Appraisal process and risk classification level that related to the insured candidate, and the decision process to receive or reject it.
- Whole Life Plan – This type of life insurance, propose a whole life protection from the death risk or overall permanent disability to the insured.
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