Confused by the many terms in insurance? Yes, insurance is known to have terms that are difficult for the general public to understand, so when planning to buy, not a few are confused.
Knowing these terms is also important so that you can understand in more detail the types, products, and insurance benefits that you will get.
All of these terms you can actually know in the handbook that the insurance company provides to you potential policyholders.
However, if you are not holding the handbook, let's look at the insurance terms and their explanations below.
Use CTRL + F or selection Find in Page on the browser you to search terms you want to know.
Actuarial (Actuarial)
Science in insurance that studies, predicts and takes into account financial risks in the future by combining several disciplines including mathematics, finance, statistics and computer programming.
Insurance agent
Insurance company employees whose job is to market products or serve prospective customers, starting from conveying the policy provisions to the contents of the policy agreement after becoming a policyholder.
Lags
The agreement made by the policyholder with the insurance company.
Akad Tabarru '(Grant / Help)
Insurance participants provide grants that will be used to help other participants who are affected by disasters, while insurance companies are the managers of grant funds.
Akad Tijarah (Mudharabah)
The insurance company is the mudharib (manager), and the participant is the shahibul mal (policy holder). Premiums from this contract can be invested and the profits on the investment are distributed among the participants.
Akad Wakalah bil Ujrah
Granting power of attorney from the participant to the insurance company to manage the participant's funds in exchange for the provision of ujrah (fee). The insurance company as a representative can invest the premium given, but is not entitled to a share of the investment results.
Akad Mudharabah Musytarakah
The development of the mudharabah contract, in which the insurance company acts as a mudharib and also includes its funds in an investment with the participant's funds. The investment profit sharing is distributed between the insurance company and the participants according to the agreed ratio according to the portion of their respective funds.
Heirs
The person's name is listed in the policy as the party receiving the insurance benefit in the form of monetary value in the event of the death of the insured.
Adjudication
Stages of dispute resolution to make a decision whether the claim submitted should be accepted or rejected by the insurance company.
Alteration
Police changes and minor changes (Police Holder/ Violent Changes).
Annualized premium
The total premium paid annually.
Annuity (anuitas)
Payments made by insurance periodically within a certain period of time.
Assignment
Transfer in insurance.
Assignor
The party who transfers the rights and benefits of insurance from the policy holder to the insurance.
Automatic Premium Loan (APL)
Provisions for automatic withdrawal of cash value in the form of money from the policy if the customer has not paid the premium until the grace period ends.
Automatic Policy Loan
An insurance policy that allows the policyholder to deduct the amount of premium that must be paid from the policy value when it enters the grace period.
Automatic Premium Holiday
One of the benefits of insurance that allows policyholders to stop paying premiums. Usually this happens after you pay and the policy is periodically in force for 6 consecutive months and the policyholder is not working or goes bankrupt.
Bancassurance
Cooperation activities between insurance companies and banks in order to market Insurance Products through banks. Cash Value: An amount of money which is the redemption value of the policy at a certain time which is guaranteed as the right of the policyholder.
Cut Limit
The costs incurred by the policyholder to cover the shortfall in costs paid by the insurance company to the hospital.
Policy Administration Fee
Fees charged and must be paid by the Policy Holder, every month in connection with the administration of the Policy.
Policy Acquisition Fee
Costs incurred when issuing policies by insurance companies such as agent commissions, underwriting fees, and others that are withdrawn from the premium allocation.
Top-up fee
Costs incurred when paying periodic premiums and single premiums.
Basic Life Insurance (Life Insurance Basics)
Life insurance is a simple life insurance policy, often interpreted as part of a joint benefit with health insurance. Companies often offer basic life insurance to their employees for free or very cheaply.
Cash Value (cash value)
The total amount of money that the insurance company gives to the policyholder.
Contestable Period
The time limit given to the insurer to cancel the policy.
Cost of Insurance (Insurance Costs)
Insurance costs (COI) are costs that an insurance company incurs in an indexed universal life insurance policy (IUL) to provide a death claim. This applies to the “at risk” portion of the death benefit and is based on the insured's current age and the risk class applicable to the insured.
Cost of Rider (Additional Benefit Fee)
Fees charged for additional benefits contained in a Basic Insurance program.
Cuti Premi
Features in insurance that customers use if they want to stop paying premiums for a while.
Investment Fund
The amount of funds obtained from the premium payment has been deducted by acquisition costs and other costs.
Endorsement
Fees charged for additional benefits attached to a Basic Insurance program.
Endowment Plan
An insurance program with two benefits, namely protection and savings.
Excess Claim
Excess insurance covers claims more than the maximum limit of coverage as specified in the policy.
Exclusion (Exemption)
Losses borne by the insurance company.
Explanation of benefits (EOB)
Letter from the insurance company as a sign of receipt of the claim given to the policyholder.
Field Underwriting
Initial selection by the insurance company.
Flat Rate
The monthly premium fee determined by the insurance company whose nominal value is the same in each payment period during the contract period.
First year Initial premium
First annualized premium.
Free-Look Period
Policyholders have 14 days to decide whether to cooperate or cancel the policy because they do not agree with the terms and conditions in the policy.
Fund Type (Type of Investment)
An investment instrument designed by insurance companies and can be used by policyholders to place their funds in the types of investments available.
Grace Period (the grace period)
Insurance term used to describe the grace period given to policyholders for 30 days from the due date of payment.
Group Life/Health Insurance Product
Life insurance or health insurance in the form of a collection with the insured or participants in one policy called the master policy.
Unit price
The results obtained from the investment portfolio are obtained from the results of the asset value plus the return on investment.
Police Illustration
Projection of insurance benefits received by policyholders.
Investment-linked Plan
A term that refers to unit-linked insurance that offers protection and investment benefits.
Guarantee of Protection
Guarantees provided by insurance companies so that policyholders can purchase additional insurance products without the need for a selection process.
Guarantee/Statement of Guarantee
A statement issued by a prospective customer regarding the condition of the person or object being insured.
Joint Life Annuity
Payments made will stop when the insured dies.
Special Police Provisions
Additional provisions that explain in detail related to life insurance. This is an integral part of the policy.
Key Employee atau Key Person
Experts owned by insurance companies with all abilities that support the success of insurance companies.
Claim
The claim given by the insured party in connection with the existence of a contract agreement between the insurance and the Insured party, where each party binds itself to guarantee the payment of compensation by the Insurer if the insurance premium payment has been made by the Insured party, when a disaster is suffered by the Insured.
Contract End Claim
Claims of the policyholder's rights because the contract has ended with the insurance company.
Pending Claim
Claims made by policyholders and cannot be paid by the insurance company for certain reasons.
Clause
The terms in this insurance are the articles contained in the policy agreement that must be obeyed by the policyholder and the insurance company.
Contribution
An amount of money determined by the sharia insurance company and approved by the policyholder to be paid under the sharia insurance agreement. This is to obtain benefits from the tabarru' funds and/or participant investment funds and to pay the management fee or an amount of money determined based on the provisions of the laws and regulations underlying the compulsory insurance program to obtain benefits.
Child
Premiums that are not paid beyond the grace period can make the policy cancel (the policy's effective period stops).
Life Insurance Company
An insurance company that has insurance products to accept the transfer of risks concerning the life or economic value of the insured.
Loan of Policy
The policyholder requests a loan from the insurance company and is approved by guaranteeing the cash value of the policy.
Late Remittance Offer
The final offer from the insurance company used to restore the canceled customer's policy.
Law of The Large Numbers
Calculation of statistical data through the concept of the law of large numbers. The results can describe how big a percentage of everything that might happen to the policyholder.
Main Reserve
Premium reserves owned by policyholders will be calculated in the middle of the year.
Mail Kit
Sales brochures used to send various information related to insurance programs sent by post to prospective customers to make it easier for them to make decisions to join the insurance program.
Insurance Period
Period of validity of the police. If the insured dies, then the insurer must pay the benefits that have been determined in advance.
Premium Payment Period
The period in which the insured must pay a premium determined by the insurer.
Period of Coverage
The period of insurance protection for the Insured is from the Effective Date of Insurance until the End of Insurance Date as stated in the Policy Data.
Grace Period
The deadline given by the insurance company to the policyholder to pay the agreed premium.
Waiting Time
Period of non-payment of premiums due to certain reasons.
Maturity Date (end of insurance period)
The expiry date of the policy stated on the policy or endorsement. Here the insurer pays the benefits at the end of the insurance period.
Minor
Police officers under the age of 21.
Mortality
The estimated time of death is uncertain or can also be used to refer to the frequency of death.
Net Asset Value Net Asset Value (NAV) / (NAV)
Net market value of a type of investment in unit-linked policies (Investment-Linked Plan)
Investment Value ( Investment Value )
The total value of the units formed in a period.
Cash Value
An amount of money which is the redemption value of the policy at a certain time which is guaranteed as the right of the policyholder.
Occupational Risk Hazzard
Risks from the job of a police officer.
Paid-up Value (the value of the payment in advance)
This provision gives the policyholder the right to stop paying premiums at a later date after the policyholder has obtained the cash value. The policy remains valid in accordance with the amount of the Sum Insured which has been reduced in value.
Participating Policy (policy with profit rights)
The term in insurance has the meaning of a policy in which the policyholder is included in the company's profits.
Payor
The term in insurance which means the policyholder as the party who pays the premium.
( Policy Holder Policy Holder )
A person or an institution that enters into a life insurance agreement with the insurer.
Insurer
A party that already has a formal permit to carry out business activities related to risk taking over another party under a policy; for this insurance, the risk Insurer receives a premium from another party as the Insured; Typically, the Insurer is an insurance company.
Withdrawal of funds ( withdrawal )
A number of funds are withdrawn from the existing cash value. Either partially or completely.
Policy (Polis)
A policy is a contract between an insurance company and a person, business, or entity covered by insurance.
Insurance policy
The term in this insurance can be interpreted as an insurance agreement contract or other document which is equivalent to an insurance agreement deed, as well as other documents which are an integral part of the insurance agreement.
It is made in writing and contains an agreement between the insurance company and the policyholder.
Policy Anniversary (Birthday Polis)
The date the policy was issued.
Policy Effective Date Policy Effective Date ( )
The effective date of the policy stated in the policy summary or endorsement if changes have been made.
Policy Issue Date (date of issue Polis)
The date on which the insurance company issues the policy.
Policy Lapse (policy expiration)
Termination of insurance coverage as a result of non-payment of premiums. In this case the remaining cash value is insufficient to pay the premium.
Policy Loan (policy loan)
The term in this insurance can be interpreted, policyholders can apply for loans if they need cash for a while. Policyholders can apply for a loan against the insured value of the policy. The imposition of interest begins to be calculated on the effective date of the policy loan.
Pre-Existing Condition
Medical conditions that require treatment before the date of insurance entry.
Awards
Premium is an amount of money determined by the insurance company and approved by the policyholder to be paid based on the insurance agreement or an amount of money determined based on the provisions of the legislation that underlies the mandatory insurance program to obtain benefits.
Premium Notice
Notification letter from the insurer to the policyholder that a certain amount of premium will be due.
Provider
Hospitals, clinics, or pharmacies appointed by the insurance company or in cooperation with the TPA appointed by the insurance company.
Quarterly Premium
Premium payments are made every three months.
Regular Premium Policy Regular Premium Policy ( )
A policy that allows premium payments to be made periodically, for example monthly, quarterly, every six months or annually.
Reimbursement
Reimbursement of claim fees but participants are required to pay hospital fees first. Then the participant submits a replacement claim to the insurance company.
Reinsurance
Efforts made by insurance companies to protect themselves by delegating insurance risk to other insurance companies.
Reinstatement (re-enactment)
The process of the insurer reinstating a policy or lapse of time due to not being paid a renewal premium. Re-enactment is done by paying premiums in arrears and following the provisions of the insurance company.
Rider (additional benefit)
Additional benefits that can be included in a Basic Insurance program, such as a Whole Life Insurance program or an endowment program. This benefit is designed to provide additional financial protection at a lower cost
risk
Bad chances that can happen to someone.
Risk Based Capital (RBC)
The term in this insurance can be defined as a ratio to measure the health and financial security of an insurance company based on the ability of capital to cover all existing losses.
Secondary Benefits
Other benefits obtained beyond the main benefits.
Sum Assured
The amount of the sum insured or the amount of the insured deposit to the policy holder.
Sharia Product
A type of Life Insurance program that offers protection against death based on sharia principles and rules.
Single Premium Policy (Police with one -time Premium)
A Policeman who only requires once payment of Premiums made in advance.
Life Insurance Application Letter (SPAJ)
A form that must be filled if you want to enter into an insurance agreement.
Group Insurance Application Letter (SPAK)
A written application form from the policyholder as the basis for the group insurance agreement.
Surrender Policy ( closure)
A written request to terminate the policy before the end of the insurance period.
Survival Period
The insured's survival period for a condition before the insurance company can pay insurance benefits.
Switching (Transfer of Funds)
A number of funds that are partially or wholly transferred into other available investment funds.
Police Year
The grace period between one policy anniversary and the next policy anniversary, which is calculated starting from the policy's effective date.
Term Life Plan (term life insurance program)
This type of insurance offers life insurance coverage for a limited period of time.
Termaslahat (Beneficiary)
The person or entity whose name is listed in the life insurance application letter or the policy appointed to receive insurance benefits.
Insured
The party facing the risk as stipulated in the insurance agreement or reinsurance agreement.
Third Party Administrator (TPA)
The institution appointed by the insurer to manage the policy owner's treatment claim process at the hospital.
Top-Up
Addition of investment funds outside of basic insurance premium payments.
( Sum Assured Sum Assured )
The term in this insurance can be interpreted as the value stated in the policy which is the basis for determining the payment of insurance benefits to be paid by the insurer to the policy holder or designated beneficiary in accordance with the policy and the laws and regulations of the Republic of Indonesia after all the conditions for receiving payment. fulfilled.
Underwriter
The process of assessing or evaluating and classifying the degree of risk associated with the insured candidate, as well as the decision -making to accept or reject the risk.
Underwriting (Guarantee)
The process of assessing or assessing and classifying the degree of risk associated with the prospective Insured, as well as making a decision to accept or reject the risk.
Entry Age
The age of the Insured is determined based on the last birthday on the Effective Date of Insurance and will increase on each Policy Anniversary.
Waiting Period or Waiting Period
Whole Life Plan or Life Insurance Program.
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