Some Terms in the World of Insurance

Some Terms in the World of Insurance

There are several terms in the world of insurance. For those who have long been users of insurance services, maybe they know the terms in the insurance world. However, if you are just about to jump or have never used insurance services, maybe you won't know.

Therefore, now I will try to tell about the terms in the insurance world, and also the meaning of the terms themselves. Hopefully my writing this time can increase the knowledge of the readers and prospective insurance users.

The first is an insurance policy. An insurance policy is an agreement or several letters (such as a contract) which contains a written agreement between the two parties, which in this case is the insurance user and insurance company.

The second is the applicant, or commonly referred to as the Applicant by people who work in insurance companies. This word is intended for those who want to apply for insurance.

Next is the policyholder. These two words are intended for insurance applicants who have been approved by an insurance company, or those who have signed an insurance agreement with the insurance company.

The fourth is insured or insured. This word is intended for those who are registered with the insurance. For example, Tony enrolled his parents to take insurance. Therefore, Tony's parents become the insured party.

Fifth is the recipient of coverage or commonly called a beneficiary. The word is addressed to those who will receive benefit from insurance. For more details, I illustrate from Tony's case on the fourth point. If Tony registers himself as the recipient of insurance benefits when registering his parents, then Tony is the recipient of the coverage.

Next is the sum assured. The sum insured is money that will be received by the recipient of the coverage.

Seventh is premium. Premium is a fee that is mandatory and must be submitted by the insured to the insurance company. Please note, the amount of premium for each insurance company varies. Usually, the amount of the premium depends on the agreement between the customer and the insurance company.

Then there is still cash value. Cash value is the cost stated in the agreement between the two parties. It must be paid to the insured if the policy is canceled before the insurance period ends.
Then there is insurable interest. The purpose of an insurable interest is an insured relationship with an insured object. This point includes the potential risks that can be experienced by the insured.

Those are some terms in the world of insurance. Hopefully what I write can be useful and useful for all of you.

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