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Insurance
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Target Pension
Target pension is defined as the pension amount that the annuity holder wishes to receive after the maturity of the policy at the vesting age.
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Third Party Insurance
If the beneficiary of a policy is someone other than the two parties involved in the contract, it is called 'third-party' cover.
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Definition: Term insurance is the most traditional life insurance policy wherein the insured gets death benefit if any contingency happens within the policy term. The insured is, however, not entitled to receive any survival benefit if he outlives the policy term.
Description: Term insurance policies are available in the range of 10-30 years term. These plans are relatively cheaper than endowment policies, money back policies and ULIPs. The benefits in a term insurance policy can be availed only in the event of the death of the insured.
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- PREV DEFINITION
Target Pension
Target pension is defined as the pension amount that the annuity holder wishes to receive after the maturity of the policy at the vesting age.
Read More
- NEXT DEFINITION
Third Party Insurance
If the beneficiary of a policy is someone other than the two parties involved in the contract, it is called 'third-party' cover.
Read More
Related Definitions
- 3rd Party Insurance: Motor third-party insurance or third-party liability cover, which is sometimes also referred to as the 'act only' cover, is a statutory requirement under the Motor Vehicles Act.It is referred to as a 'third-party' cover since the beneficiary of the policy is someone other than the two parties involved in the contract (the car owner and the insurance company). The policy does not provide any Absolute AssignmentAn absolute assignment is the act of complete transfer of the ownership (all rights, benefits and liabilities) of the policy completely to other party without any terms and condition.Description: Absolute assignment shifts the ownership of the insurance policy.For instance, a policy owner X wants to gift his life insurance policy to another person named Y. Hence X is doing absolute assignment.Accidental Death Benefit And DismembermentAccidental death benefit and dismemberment is an additional benefit paid to the policyholder in the event of his death due to an accident. Dismemberment benefit is paid if the insured dies or loses his limbs or sight in the accident.Description: In an event of death, the insured person gets the additional amount mentioned under these benefits in the insurance policy. These are the supplementary Actual Cash ValueA valuation of the damaged property, i.e. its monetary worth at market value immediately preceding the occurrence of the loss, is called actual cash value of the property. It gives the estimate of the cost of replacement or repair of the damaged asset.Description: To ascertain the exact extent of loss, the insurance company undertakes an evaluation of the property before and after the loss occur
- Actuarial ScienceActuarial Science is a discipline that deals with assessing the risks in insurance and finance field using various mathematical and statistical method.Description: The professionals who carry out these tasks of ascertaining, analyzing and providing solutions of future uncertainties having financial risks are the actuaries. Mathematics of probability and statistics are the major tools they use toActuariesA person with expertise in the fields of economics, statistics and mathematics, who helps in risk assessment and estimation of premiums etc for an insurance business, is called an actuary.Description: Insurance business requires advanced statistical and analytical skills for evaluation of risks and returns associated with each proposal. Insurance companies employ these experts from the field of Adverse SelectionAdverse selection is a phenomenon wherein the insurer is confronted with the probability of loss due to risk not factored in at the time of sale. This occurs in the event of an asymmetrical flow of information between the insurer and the insured.Description: Adverse selection occurs when the insured deliberately hides certain pertinent information from the insurer. The information may be of critAgentAn agent is a person who represents an insurance firm and sells insurance policies on its behalf.Description: Generally, there are two types of such agents who reach the prospective parties that may be interested in buying insurance. These are independent agents and captive or exclusive agents.Independent agents may represent many insurance firms and receive commission for their services a
- Annualized PremiumThe total amount of premium paid annually is called the annualized premium.Description: Any insurance policy comes up with many premium payment options. Premium can be paid monthly, quarterly, semi annually and annually.For instance, if the monthly premium is Rs 2000, then the annualised premium will be 2000*12 = Rs 24000Also See: Insurance, Concealment, BancassuranceAnnualized Premium EquivalentAnnualized premium equivalent (APE) is a common measure of ascertaining the business sales in the life insurance industry. It is the sum of the regular annualized premium from the new business plus 10% of the first single premium in a given period.Description: APE is computed as:APE = Annualized regular premium + 10 % of single premium (Including top-up premium). Where annualized regular pre
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Those serious about retirement aren’t attracted to NPS tax benefits: Santosh Agrawal, Policybazaar"NPS is a good product, but it’s just accumulation and then it invests in annuity. People know of the NPS because of tax benefit, but Rs.50,000 is not a meaningful amount," says Santosh Agrawal, CBO, Life Insurance, Policybazaar.- Mutual funds, other investment options to choose to save for retirementThe Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures. The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.
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- Parliamentary panel recommends reduction in GST on insurance productsThe Committee, to make insurance more affordable, recommended that GST rates applicable to health insurance products, particularly retail policies for senior citizens and microinsurance policies (up to limits prescribed under PMJAY, presently Rs 5 lakh), and term policies may be reduced.
- Decoding the importance of term insurance at every stage of your lifeTerm insurance offers financial security and peace of mind at every stage of life. When young and single, it helps build a foundation and secure the financial interests of dependents.
- Casual labourers in BRO projects to be covered under term insurance"Defence Minister Rajnath Singh has approved a proposal to launch a group (term) insurance scheme for Casual Paid Labourers (CPLs) engaged by Border Roads Organisation/General Reserve Engineer Force for the ongoing project works," it said in a statement on Saturday.
- Kotak Mahindra Life launches unit-linked term insurance planKotak Mahindra Life Insurance has launched term insurance plan that offers life cover up to 100 times of the annual premium. The 'T.U.L.I.P' Term with Unit-Linked Insurance Plan also provides a customer the opportunity to earn returns like ULIP and additional protection against critical illnesses and accidental death.
- LIC Jeevan Kiran life insurance cover: Base plan options, death benefits, premium paymentLife Insurance Corporation of India (LIC) had earlier introduced Jeevan Kiran, a Non-Linked, Non-Participating, Individual, Savings, Life Insurance plan.
- ET Explainer: An act of commission?New regulations permit insurance companies to determine commissions based on board-approved policies, but they must not exceed overall expenses of management (EoM) limits, calculated as a percentage of premiums.
- What are the 7 types of SIP and what is the right one for you?"Flexible SIPs allow you to make some changes to your SIPs. For example, you could decide to increase the amount. You could decide to reduce the amount based on various factors. So, for example, if you feel that the markets are down right now, you could say, okay, I want to put in more money. But if you feel that maybe you have a liquidity issue, then you might say that I would like to decrease the SIP amount. "
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