Insurance Glossary - Words Simplified

Absolute Assignment of a Life Insurance Policy

The process of transferring rights of a Life Insurance Policy is called Assignment. There are 2 types of Assignment.

1. Absolute Assignment

2. Conditional Assignment

Absolute Assignment means complete Transfer of Rights. The person who transfers the rights is called the Assignor and the person to whom the rights are being transferred is called the Assignee.

Hence Absolute Assignment means completely transferring whole and sole rights of the policy from the Assignor to the Assignee... Read More »

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Accidental Death Benefit Rider Definition

“Although death is certain but the time of death is uncertain. Hence it needs to be provisioned for”. Rider is an additional benefit along a life insurance policy. It cannot be taken on its own. It is considered as an add-on benefit along with the actual policy.

If death occurs through an accident, then it is called Accidental Death and the benefit received by the policyholder due to an accidental death is called Accidental Death Benefit. Usually a certain sum of money is committed as... Read More »

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Actuary in Insurance

Actuary is a person who determines the future value of risk and makes all predictions based on his calculations and assumptions. An actuary is a highly trained statistician who is an authority in evaluating the various types of risks.

In insurance companies, all financial calculations are done by an actuary. They are the ones who calculate how much insurance premium would be paid by whom and why. They are ones who tabulate the premium table and rate-up chart and do all the other predictions,... Read More »

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Assignment of Life Insurance Policy

Assignment of a Life Insurance Policy simply means transfer of rights from one person to another. The policyholder can transfer the rights of his insurance policy to another for various reasons and this process is called Assignment.

The person who assigns the policy, i.e. transfers the rights, is called the Assignor and the one to whom the policy has been assigned, i.e. the person to whom the policy rights have been transferred is called the Assignee. Once the rights have been transferred to... Read More »

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Assignor of a Life Insurance Policy

Assignment of a Life Insurance Policy simply means transfer of rights from one person to another.

The person who assigns the policy, i.e. transfers the rights, is called the Assignor and the one to whom the policy has been assigned, i.e. the person to whom the policy rights have been transferred is called the Assignee.

Assignor Assignee

Thus, the owner of the policy who decides to transfer the rights to someone else, is called Assignor.

Once the rights have been transferred to the Assignee, the rights of... Read More »

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