ComputerHunter.org |
|
|
|||
|
 |
Insurance Glossary of Terms
Assured - Those insured under the terms of an insurance policy. Benefit - The money paid to the policyholder when a claim is made. Bid Price - The selling price or cash-in value of your unit holdings. Bonus - Relates to a with-profits policy. The amount of money added to the benefit payable under the policy. The amount is dependent upon the profits made by the insurance company. Added bonuses cannot be taken away. Convertible Term Assurance - A term insurance policy which gives you the option to convert your current policy to a whole-life or endowment insurance policy, without having to take further medical examinations. Critical Illness Insurance - A policy that pays out a lump sum on the diagnosis of life threatening illnesses indicated in the terms of the plan. Decreasing Term - A form of term life insurance where the death benefit decreases each year as per your policy. Premiums remain level. This type of certificate is frequently sold as mortgage insurance. There is no surrender value for this policy. Endowment Insurance - An insurance policy that pays a stated amount at the end of a specified period or upon the death of the insured if it occurs within that period. Family Income Benefit - Term assurance which pays money to the life assured's dependants for a set period, rather than paying a lump sum. Guaranteed Bond - A bond in which principal and interest are guaranteed by an entity other than the issuer. Guaranteed Bonds can be income or growth. Increasing Term - The cover and the amount you pay into the policy are increased by a specific percentage each year calculated on the original sum insured. Designed as a way to increase your life cover as your earnings increase. Investment Bond - Combines investment with some life cover. The payments you make into an insurance policy or investment bond, usually a lump sum, are invested in the insurance company's with-profits or unit-linked funds (Life Funds). Different types of bonds include the guaranteed bond and unit-linked single premium bond. Not to be confused with a company or government bond, an investment that offers a fixed rate of interest and an area where your chosen Life Funds may be invested. Life Fund - This usually refers to Unit linked Investment Funds. These are funds run by Life Assurance or Pension Companies. Such funds are used for individuals holding life assurance policies to invest in. The assets held within the fund are divided into a number of units. When an investor contributes to a Life Fund, units are allocated to investors in proportion to their investment. Maturity - An agreed date when an endowment policy ends and the proceeds, including any bonuses, are payable. Mutual - A life insurance company that is owned by its with-profits policyholders. Offer Price - The price at which fund units are bought. Premium - The amount of money paid into an insurance policy. Proprietary - A life insurance company that issues its profits to its shareholders. Qualifying Policy - A life assurance based savings plan that has to be written for a minimum of 10 years and must fulfil certain qualifying policy criteria to ensure the final payout is tax free. Renewable Term - Term Insurance that may be renewed for another term without evidence of insurability. Single Premium Policy - Where a single lump sum is paid for an insurance policy. Sum Insured - The amount of money that is guaranteed to be paid under an insurance policy, before any bonuses are added. Surrender Value - Not applicable to all life insurance policies. The amount that an insurance policyholder is entitled to receive when he or she discontinues coverage Term Insurance - Provides policyholder with protection only. Life insurance payable to a beneficiary only when an insured dies within a specified number of years (the term). If you live beyond the term you do not receive any payment. This is thought to be the cheapest type of insurance. Terminal Bonus - This is an extra bonus determined when a death or maturity claim is paid. Terminal bonus is often only paid if the policy has been in-force for a minimum number of years at claim time. The amount is dependent upon the profits made by the insurance company. Unitised With Profits Fund - Also known as a Unit-Linked With Profits Fund. A type of Life Fund that can invest in UK and overseas shares, property, fixed interest securities and cash. When you invest in this fund through an insurance policy, you buy 'units'. When an annual bonus is declared, you can either receive more units or it is added to the unit price on a daily basis. Due to the addition of bonuses the unit price does not reflect the value of the underlying investments. Unit-Linked - Also called Unitised. If your insurance policy is unit-linked, some of your money is used to purchase 'units' in a fund. The value of your policy at maturity is dependent upon the growth of the fund in which the policy is invested. Generally refers to policies that offer protection and saving such as endowment insurance, whole life insurance and investment bonds. Unit-Linked Single Premium Bond - A single lump sum life insurance policy where your investment is spread over a number of Life Funds. Whole Life Insurance - Whole life insurance provides a death benefit for the policyholder as it builds up cash value. The policy remains in force for the lifetime of the insured, as long as premiums are paid according to the policy agreement. You can choose insurance that pays out on death a guaranteed sum only, the sum plus any bonuses that have been added, or the sum plus any additional value from the growth of the funds invested in. Without Profits - When a policy reaches maturity or the policyholder dies, the amount paid out is the basic guaranteed sum only. You would not be entitled to any bonuses. With Profits - Relates to insurance policies that combine investment with protection. This type of policy is entitled to a share of the profits made by the insurance company. Premiums are invested in the with profit fund, reversionary bonuses are applied usually on an annual basis which reflect the investment growth of the fund assets. On death and/or maturity a further terminal bonus might be applied to the fund value. With Profits Bond - An insurance policy where your lump sum is in most cases invested in a Unitised With Profits Fund (which is listed under the Life Funds section). About the Author This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the link above is intact.
Google News - Top Stories
|
|
|
|
RELATED ARTICLES
All Auto Insurance is Not Created Equal! Contrary to what you may have heard all auto insurance is not created equal. A quick search on the net will quickly reveal different rates, different policies, and different terms, so how is one to sort through all the clutter. Check Out The Variety of Auto Insurance Texas Style They say everything is bigger and better in Texas, and this is true when you look at the wide variety of different auto insurance companies offering auto insurance. Texas drivers have to consider four main options when they choose an auto insurance company. These include: Saving on Home Insurance: Tips for Cutting Costs Everyone is searching for a way of cutting costs, a method to lower their overall monetary expenses. Saving on home insurance is a reasonable, viable option when choosing to take control of your finances. There are several discounts available; the variety of practices used in saving on home insurance can be endless. Health Insurance Plans - Benefits to Different Plans & Providers Health insurance plans vary in their coverage and prices. The more coverage offered, the higher the premiums. This doesn't mean that the lowest premium is the cheapest. If you have to pay many out-of-pocket medical expenses, you could be paying more than if you had gone with a higher premium plan. Different plans benefit different people. Self Employed Health Insurance - Tips For Getting Cheap Health Insurance When Youre Self Employed If you're self-employed and facing high health insurance bills, there are a number of things you can do to make your health insurance premiums cheaper once you find a good health insurance plan. Some involve opting out of certain coverage, others mean increasing the amount you'll pay out of pocket for expenses. There are also discount health plans that you can join which will offer you cheaper fees for the services that you use. All involve taking on some of the risk for insuring yourself onto your own shoulders. Term Life Insurance - A Safeguard for Small Business Owners Term life insurance can offer protection for a small business and its owners in surprising ways. If you own a small business, you probably pay property and liability insurance, and are protected against fire, theft, flood and other disasters. But what would happen if you or one of your key employees was suddenly unable to work due to disability - or death? If something happens to you or one of your partners, what happens to your business? Who will pay outstanding business loans and other obligations? Understanding How Your Credit History May Affect Your Car Insurance Coverage Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this. Health Savings Account (HSA): What Happens to it When I Retire? The Health Savings Account (HSA) is a great tool that is going to help us all reduce our health insurance costs and avert the current healthcare crisis in America. But what happens when a person retires? What use is an HSA then? Your HSA transforms itself at that moment you turn 65, when you officially become eligible for Medicare. Your Health Savings Account, which will have served you all those years as a nice financial cushion before you begin using your insurance policy, flips into something very similar to an Individual Retirement Account (IRA). That's right. An HSA essentially becomes an IRA when you turn 65. The reason for that is that when you turn 65, you are eligible for Medicare, and HSAs are not meant to help you with Medicare, that is its own system. So what happens to that money left over in your HSA? If you haven't been sick much, there could be hundreds of thousands of dollars in there! Don't worry, it's safe. There is no "use it or lose it" policy with HSAs. That is one of the great things about the HSA. No, your dutiful HSA has now become a retirement account. Now that you're 65, you can begin to pull money out of your HSA without penalty and use it for anything. Use the money for roller blades, dinner, a new computer, a car, or give it to your kids. It's yours to do with what you want. No penalties for withdrawing money. However, remember, when you take money out of any IRA, that money is taxed by the IRS. You got a tax-deferral when you put the money in, and now you pay taxes to take the money out. Fair, isn't it? If you want to avoid paying taxes on that money, no problem. Just stick to using the money for healthcare expenses (as approved in IRS Publication 502) and you won't pay taxes on the withdrawals, even after you're 65. This is just one of the many ways HSAs are so useful and helpful for Americans savings for their own healthcare. The HSA is available today from many insurance agents and financial planners. What to Look for in Good Health Insurance Health insurance is a kind of protection that provides payment of benefits for covered sickness or injury. Included in health insurance are various types of insurance such as accident insurance, disability income insurance, medical expense insurance, and accidental death and dismemberment insurance. Life Insurance Beneficiaries Naming a beneficiary for your life insurance policy can be a difficult decision to make, not to mention a tricky procedure. A person needs to research the different types of beneficiaries and the different ways to go. Hidden Ways to Cut Car Insurance Consumers are countering rising gasoline prices and other vehicle operating costs by capitalizing on lower auto insurance rates, according to leading insurers. What Is Health Insurance? What is health insurance and why do I need it? Health insurance protects you and your family from a financial hardship due to medical expenses in the untimely event that you are injured or become ill. There are four types of health insurance, you may need just one or you may need a combination to ensure you have the most insurance coverage possible. It is best to evaluate each type of insurance to obtain an accurate account of which type will best suit your needs. Online Health Insurance Quotes - Finding The Cheapest Rates Possible Shopping for health insurance can be very discouraging when you become aware of the costs. If you are in search of affordable health insurance, an online quote may be very helpful to you. Purchasing insurance online or simply getting an online quote from one or more health insurance carriers can save you a lot of money on the health insurance you so desperately need. Choosing Affordable Health Insurance For Children In most cases, private health insurance comes through a person's employer, who picks up the majority of the cost of premiums. However, today many people, who are either self-employed or who work for a company that doesn't offer health insurance, find it necessary to obtain quality affordable health insurance for children. Insurance Credit Scoring: An Ethical Issue The issue at hand is the use of a consumer's credit score as an underwriting tool for auto insurance rates. What is a credit score or FICO score? A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrower's credit history into a single number. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable. What is Car Insurance? Car Insurance is compulsory in the UK. You are required by law to have a policy to cover your liability to other road users. Canadian Funeral Insurance: Our Final Gift to Those We Love Most of us don't like thinking about our own funerals, but no matter how much we ignore the inevitable, the truth is that when the time comes someone will be responsible for those expenses. The question is will it be our grieving loved ones who foot the bill or will we plan ahead and purchase funeral insurance to cover those costs so they'll have one less concern to worry about. Discover the Fortune Hiding in Your Insurance Premiums! Ever thought about how to save money? Sure you have, what did you do? You downsized a few things, maybe cut back on the monthly budget, had a boot or garage sale to free up some money but there is a place which most people don't look. Insurance premiums! Health Insurance, What Does It Mean? Your health insurance policy is an agreement between you and your insurance company. The policy lists a package of medical benefits such as tests, drugs and treatment services. The insurance company agrees to cover the cost of certain benefits listed in your policy. These are called "covered services." Give Your Auto Policy a Tune-Up When you originally purchased your auto insurance policy, you purchased a certain type of coverage to meet your needs at that time. Since then you have probably experienced many changes in your life. Have these changes changed your auto insurance needs? Is it time to "give your auto policy a 'tune-up'"?
|
|
|
|
|
