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Insurance
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Total Permanent Disability
An individual is considered 'totally and permanently disabled', if the life assured has become completely disabled due to accidental bodily injury, adverse sickness or fatal disease.
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Treaty Reinsurance
When an insurance company enters into a reinsurance contract with another insurance company, then the same is called treaty reinsurance.
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Definition: Traditional insurance plans provide multiple benefits like risk cover, fixed income return, safety and tax benefit. Traditional Insurance plans are the oldest plans and cater to individuals with a low risk appetite.
Description: Traditional insurance policy plans provide the sum assured and a guaranteed or a vested bonus at maturity. These plans take a limited exposure in high risk equity and hence the downside probability is also low. These plans are suitable for the purpose of tax planning. Unlike ULIPs, premature withdrawal is normally not allowed in the case of traditional plans.
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- TAX BENEFITRISK COVERFIXED INCOME RETURNTRADITIONAL INSURANCE PLANS
- PREV DEFINITION
Total Permanent Disability
An individual is considered 'totally and permanently disabled', if the life assured has become completely disabled due to accidental bodily injury, adverse sickness or fatal disease.
Read More
- NEXT DEFINITION
Treaty Reinsurance
When an insurance company enters into a reinsurance contract with another insurance company, then the same is called treaty reinsurance.
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
Related News
How has health insurance changed over time? When should you go for riders?Many health insurance companies are offering innovative features to increase the attractiveness of buying health insurance. These features include lock-in premium, no claim bonuses, and treatment for critical illnesses abroad. A four-year waiting period for senior citizens has been reduced, and coverage now includes ABCD illnesses, such as diabetes. Health insurance companies are also offering day one cover and more coverage after 30 days, which are more expensive than a basic policy with a longer waiting period.- Traditional life insurance plans offer poor returns and low risk cover, best to avoid themET Wealth looked under the hood of 10 such traditional plans and found that the average return in them was barely 4.8 per cent.
- Insurance loses it to mutual fundsAfter demonitisation, banks have been flushed with funds. As interest rates are coming down, people are investing in mutual funds post demonitisation.
- Insurance loses it to mutual fundsAfter demonitisation, banks have been flushed with funds. As interest rates are coming down, people are investing in mutual funds post demonitisation.
- Insurance loses it to mutual fundsAfter demonitisation, banks have been flushed with funds. As interest rates are coming down, people are investing in mutual funds post demonitisation.
- The new and improved traditional insurance plansThere is also greater focus on protection in the new plans. The revamped plans also guarantee a higher surrender value.
- Akhilesh Das Gupta set to be re-elected BAI PresidentAkhilesh Das Gupta is set to be re-elected President of the Badminton Association of India President as he remained the only candidate for the coveted post.
- Life insurers line up 500 schemes for launch next yearAs many as 500 new insurance schemes are all set to hit the market in the next couple of months, following the approval of IRDA.
- Five tips to ensure you buy the right insurance coverThough saving tax is not the primary purpose of insurance, it is still bought for this benefit. Find out the questions you should ask in order to buy the appropriate cover.
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