Author: saqibkhan

The paid value is an amount when the insurance policyholder stops paying the premiums after a specific duration but does not withdraw the amount. The policyholder gets the amount at the end of the term. In this case, the insurance company provides an assured amount but is reduced proportionally according to the time when the policyholder has stopped paying the premium.

The deduction from the matured amount depends on how soon before the maturity period that person has requested the paid value. In other words, we can say that when a person who has purchased insurance stops paying premiums after a specific duration, the insurance policy remains active but with a lower assured amount. This reduced amount is called paid value or paid-up value.

The term Surrender Value specifies an amount the policyholder will get from the life insurance company if they decide to exit the policy before maturity. Eventually, it is a loss for the policyholders because they don’t fulfill the insurance company’s criteria. Some other names of surrender value are surrender cash value or, in the case of annuities, called annuity surrender value.

For example, suppose you have paid 15000 rupees (5000 per year x 3) in the initial three years for a sum assured of 1.5 lakh rupees, and you decide to exit the policy before maturity, so the minimum surrender value you can get is 30% of 10000, which is 3000 rupees.

Following is the list of the most common types of Insurance:

• Life insurance
• Medical and Health Insurance
• Personal accidental Insurance
• Travel insurance
• Retirement annuity insurance
• House and property insurance
• Investment-linked Insurance etc.

Co-insurance specifies a policy usually offered by health insurance companies. In this policy, the policyholder has to share the coverage with the insurance policy in a percentage of the policy value after paying the deductible or co-payment. Usually, it is an 80% and 20% split where the policyholder has to pay 20% while the insurance company pays 80% of the covered amount.

For example, suppose you have a health insurance policy for 120000 rupees, and the deductible amount is 20000. So after paying the deductible, the remaining amount is 100000, and the co-insurance is 80/20. You will have to pay 20000 out of your pocket, and the insurance company will pay the remaining 80000.

Travel insurance is one of the most important things you should buy if you travel with your family, especially abroad. It is important while traveling abroad because it covers several risks. For example, medical risks, travel risks, and also flight disruptions.

The following list specifies the main reasons to buy travel insurance:

Travel insurance covers against general risks of travel

The biggest advantage of travel insurance is that it covers risks during travel such as loss of passport and personal belonging cover, loss of checked-in baggage, etc. It ensures an additional layer of protection against financial loss. For example, if your flight is canceled for any reason, having travel insurance will give you compensation up to a particular limit as per coverage terms & conditions. Without travel insurance, it may be a very costly affair for you.

It covers medical emergencies during traveling.

A travel insurance policy covers the cost of medical treatment up to a specific limit. If you face any medical emergencies during traveling, the insurance company will reimburse the medical or accident treatment costs up to a particular mentioned limit. Insurance companies consist of a list of network hospitals where you can get treatment.

Travel insurance covers trip disruptions.

Suppose you face any trip disruptions that may cause you to cancel your trip or curtail your trip due to any reason. In that case, the policyholder gets coverage for canceled bookings, entire trip cancellations according to the policy, and terms & conditions against each cover.

It assists the policyholders.

The travel insurance companies provide all types of assistance in the case of any problems on your trip. You can get guidance to file your claims correctly and help you find a network hospital for treatment.

Along with these facilities, the travel insurance assists in losing your baggage, belongings, and money, losing your passport, personal liability, delayed baggage, travel delays, hijacking, repatriation, etc.

In Insurance, the term “Annuity” specifies a policy issued by the insurance company to promise the policyholder a fixed income for the lifetime. It is a fixed amount of money that the policyholder gets each year for the rest of their life. According to this contract between the policyholder and the insurance company, the insurance company has to pay you either immediately or in the future after a certain period.

The policyholders get this payment monthly or quarterly. This is the best insurance policy for supplementing income after retirement to help you handle some of the basic living costs.

In the context of insurance, the deductible is a decided amount that a policyholder has to pay from his pocket before the insurance company starts paying to the policyholder. In other words, we can say that an insurance company is liable to pay the claim amount only when it exceeds the deductible.

Reasons behind adding deductible in insurance:

• A deductible is one of the several types of clauses added to insurance. It is used by the insurance company as a threshold for policy payment, generally for health insurance and travel insurance.
• It is mainly added as a clause in health insurance plans to prevent frauds or scams and ensures that the customers raise only genuine claims.
• Suppose you have a health insurance plan of 50000 rupees, and the deductible is 10000 rupees. You have to pay 10000 rupees first in the hospital. The remaining amount of 40000 will be paid by the insurance company directly to the hospital only when the deductible amount is paid.

As the name suggests, the “Loss Payee” is a person or the bank that receives the insurance payment after losing the property or vehicle that the insurance policyholder owns. According to the laws, it is a clause in the insurance policy. It is used to cover the investment of other parties or banks from where you have got the loan against your vehicle or your property. For example, if you have a car on loan and have insurance for that car, if you met an accident, and your car is completely damaged beyond repair, your bank still owes money. When you claim the insurance, the insurance company will pay money directly to the bank or person you owe money. Here the bank is a loss payee.

Following is a list of the different types of benefits or coverage normally provided under a personal accident policy:

• Accidental death
• Any accidental permanent disability.
• Temporary disability (partial or complete according to your insurance plan).
• Hospitalization benefits.
• Medical expenses.
• Any type of accidental and corrective surgery.
• Funeral expenses etc.

A declaration page is an official document or copy that contains all the information of the policyholder like name, address, vehicle information, type of coverage, and loss payee information. It is updated when you make changes during your policy term. For example, if you add a new endorsement, your insurance provider company updates the declaration page and sends you a revised copy.