Glossary glossary | Tomorrowmakers

A B C D E F G H I J K L M N O P Q R S T U V W

Accumulation Period
It is the time interval between the start of the policy and the time when the beneficiary receives the pay out. It is decided by the person buying the insurance policy i.e. the policy holder.

Actual cash value
In the property insurance industry, Actual Cash Value is a method of valuing insured property. In case of damage to the property, ACV is the replacement value after depreciation is deducted.

Actuarial Science
It is a subject that deals with the assessment of risks related to insurance using different statistical and mathematical methods.

Actuary
An insurance professional who specializes in assessment of risk factors in order to determine the rates as well as premiums associated with an insurance policy.

Addendum
A change or alteration made to an insurance policy, in terms of increasing or decreasing coverage, which changes the terms and condition of the original legal contract.

Adjustable Life Insurance
A type of life insurance policy wherein a policy holder has the facility to make alterations to his/her insurance policy, its premium, and even its term.

After Tax Rupees
It refers to the disposable income left with the policyholder after he/she has paid all taxes in a financial year, as specified under the Income Tax Act.

Age at Entry
It is the age of the proposer or insured at the time he/she fills the application form for insurance or enters into the insurance contract.

Age at Maturity
It is the age of the proposer or insured at the insurance contract comes to an end or the insurance policy matures.

Age Limits
The maximum and minimum ages over or below which an insurance company doesn't accept insurance applications or doesn't renew a policy for an individual.

Agent
An agent is a representative of the insurance company who sells insurance policies on behalf of the company.

Aggregate Limits
There is a limit on the amount of pay out an insurance company will give under one insurance policy year. Rather than number of occurrences, aggregate limits put restriction on the value of pay out.

Aleatory Contract
A legal contract in which the performance of one or both parties involved depends upon a particular event. For example, a life insurance contract wherein the insurer only gives a pay out to the family of the insured in case of his/her death.

All risk Agreement
It is a property or liability insurance contract that covers all risks of loss except those that are particularly excluded.

Analyst
An analyst is a finance professional who collects and interprets financial data pertaining to corporate entities and financial markets to predict the price movement of stocks and offers buying and selling recommendations to investors.

Annuitant
The beneficiary of an annuity policy i.e. the person during whose life the annuity policy's payments last.

Annuity
a fixed amount of money paid to an investor at regular intervals of time, usually till the end of his/her life.

Annuity Policy
An insurance policy that guarantees regular inflow of income for a particular amount of time, or for the entire life of a particular person or persons.

Application Form
Provided by the insurance provider to the insured, in order to capture the required details for enrollment.

Appreciation
Increase in the value of an asset over a period of time.

Assessor
A representative from the insurance company who surveys the insured goods, based on which the premium and extent of policy coverage can be decided.

Asset
An asset is anything that holds an economic value such as cash or something that be easily converted into cash. Some examples of assets are securities, inventory, house, car, office equipment or property.

Asset allocation
The process of balancing risk and reward by altering the percentage of each asset in an investor's financial portfolio, based on his/her risk capacity, investment time horizon, and financial goals.

Asset Class
An asset class is a group of financial instruments that possess the same characteristics, tend to behave in a similar fashion in the financial markets and are subjected to the same laws. The three types of asset classes are stocks, bonds and cash.

Asset Management
Management of securities such as stocks, mutual funds, bonds, limited partnerships, etc. as well as tangible assets such as real estate, carried out by a professional, to meet particular investment goals of an investor.

Asset Protection
Asset protection is a strategical approach aimed at guarding one's valuable assets from creditor claims in case of inability to pay off the debt.

Attained Age
It is one's present age, which is used by insurance companies to calculate premiums. As one gets older, possibility of death during the insurance period cover increases, and so does premium.

Auto Insurance
An insurance policy bought by an individual to diminish the costs incurred on the repair of their vehicle in case of an accident that leads to damage of the vehicle.

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