Entries in Insurance Glossary starting with the alphabet M

Whenever anyone purchases a life insurance policy, he would always want to know how much money would be due to him and when. That is the precisely the reason behind purchasing the same. The most common types of claims are Death Claim and Maturity Claim. This applicable in all life insurance policies except pure term insurance plans which do not have a Maturity Benefit.
 

Maturity Claim is associated with the Maturity Benefit of the Policy i.e. the claim which arises when the policy matures. It...  Read More »

Money Back Plan is a special type of life insurance policy that falls under Endowment Plans. In Insurance language it is called Anticipated Endowment Plans and commonly known as Money Back Policies. It simply means that in Money Back Plans, the money comes back to the Life Insured after a specific interval of time as Survival Benefit. However, if the Life Insured dies during the policy term, then the Death Benefit would be paid to the nominee and the policy would be terminated and no further...  Read More »

Mortality Charge is the amount charged every year by the insurer to provide the life cover to the policyholder on the life of the Life Insured. It can otherwise be called the Cost of Insurance.
 

Let us take an example. Ravi Agarwal pays a premium of Rs 10,000 towards his life insurance policy for which he would get a life coverage of Rs 1,00,000. Now a part of the Rs 10,000 premium that he paid is the ‘Cost of Insurance’ or ‘Mortality Charge’. Mortality Charge is usually a very small amount,...  Read More »