Insurance Glossary

A financial product that pays out a fixed stream of income to an individual, typically used as an income stream for retirees.

The year in which the total cash value of a policy equals the total premiums paid, meaning the policyholder has recovered their investment.

A feature in critical illness insurance that allows multiple claims for cancer-related conditions, subject to specified conditions and waiting periods.

The period during which the insurance policy provides coverage or protection.

A type of insurance that pays a lump sum benefit upon diagnosis of a specified critical illness or medical condition.

A portion of the insurance company's profits distributed to policyholders of participating policies.

The process of saving and investing for future education expenses, sometimes using insurance products with savings features.

The minimum cash value that the insurance company guarantees to pay if the policy is surrendered. This amount is specified in the policy contract.

Internal Rate of Return (IRR) is a metric used to estimate the annualized return of an insurance product over a specific period, taking into account the timing and amount of cash flows.

The process of organizing and managing assets to be passed on to beneficiaries, often using insurance products as tools for wealth transfer.

An insurance policy that allows the policyholder to choose from multiple currencies for premium payment and benefit payout.

Additional returns that may be paid by the insurance company based on the performance of its investment portfolio. These are not guaranteed and may vary.

A life insurance policy that participates in the profits of the insurance company, typically through dividends or bonuses.

A loan that a policyholder can take against the cash value of their life insurance policy.

The period during which the policyholder is required to pay premiums for the insurance policy.

A benefit that waives future premium payments if the policyholder becomes totally disabled or is diagnosed with a specified condition.

The process of determining retirement income goals and the actions necessary to achieve those goals, often involving insurance and investment products.

A bonus declared annually by the insurance company that is added to the guaranteed sum assured of a participating policy.

A type of life insurance product that combines insurance protection with savings or investment features.

The amount paid to the policyholder when a life insurance policy is cancelled before it matures or before the insured event occurs.

A one-time bonus paid when a policy matures, is surrendered, or upon the death of the insured. It is typically non-guaranteed.

A type of life insurance that provides coverage for the entire lifetime of the insured, as long as premiums are paid.