What should you keep in mind while buying an insurance policy?
You should keep the following things in your mind while buying an insurance policy:
What do you understand by no-claim bonus? What are its main benefits?
As the name suggests, a “no-claim bonus” or NCB is a benefit or a reward for the insurance policyholders who have not claimed insurance during the preceding year of coverage. Advantages of no-claim bonus The biggest advantages of a no-claim bonus are as follows:
What do you understand by the “contestable period” in an insurance policy?
In an insurance policy, the “contestable period” is usually a time of 1 or 2 years. The insurance company holds all the right to investigate the policy and the policyholders and decide whether to pay or not to pay the insured within this period.
What do you understand by “Insured” and “Insurer”?
The terms “Insured” and “Insurer” are used in the Insurance industry. Here, the insured is the person or organization that holds the policy, and the term Insurer specifies the company that covers the insured and pays the compensation.
What is the key difference between “revocable beneficiary” and “irrevocable beneficiary” in insurance?
The “revocable beneficiary” is a designation in which the policyholder has all the rights to change the beneficiary name without the consent of the named beneficiary. On the other hand, the “irrevocable beneficiary” is a designation in which the policyholder must ask for the beneficiary’s consent before changing the beneficiary’s name. In this condition, the […]
What do you understand by the term “Beneficiary”?
The term “Beneficiary” is used for that person who gets nominated for the insured amount if the policyholder dies.
What is a premium? How does an insurance company determine the premium?
A premium is a price or amount the policyholders have to pay for a contract of insurance to the insurance company. It is the price paid for protection from an uncertain loss, hazard, or harm. It can be paid monthly, quarterly, or annually according to their plan, in return for the coverage the policyholders have […]
What are the different types of Insurance Coverage?
There are mainly two different types of Insurance Coverage:
What do you understand by the term “insurance coverage”?
The term “insurance coverage” specifies that when an individual takes an insurance policy from an insurer or an insurance company, the insured things will be covered by the insurance company for a specific amount for themselves or the things that he had taken the insurance policy. It is a type of agreement that consists of […]
What do you understand by an insurance policy?
The insurance policy is a written contract between the policyholder and the Insurer. An entity or organization which provides insurance is called an insurer, an insurance company, or an underwriter, and the person or entity who buys the insurance is called a policyholder. Insurance policies are mainly used to hedge against the risk of financial […]