Premium Insurance
Insured event is a contingency specified in the insurance contract (insurance policy), under which the insurer pays out a benefit insured; under a life insurance contract the benefit insured consists either of a single payment (the sum insured), or repeated payments (e.g. in life annuities)
Term of insurance is the period of insurance cover, according to which one classifies:
– temporary insurance: has a limited period of cover stipulated in the insurance contract
– perpetual insurance: has a period of cover, which in not limited by the insurance contract (e.g. a whole life annuity)
– deferred insurance: has a period of deferment, by which the given insurance cover is postponed (e.g. a deferred life annuity); in the case of short-term deferment (in order to reduce moral hazards of clients), the concept of waiting period is used instead
Participants in life insurance (classification):
– insurer: is a legal entity that is entitled according to law to carry out insurance
– policyholder: is a natural person or a legal entity that concluded an insurance contract with the insurer (an important obligation of policyholders is to pay insurance premiums)
– insured (person): is a natural person, the life and health of which is the subject matter of the insurance (in non-life insurance the insured may be a legal entity, as well)
– beneficiary: is a natural person or a legal entity that has right to the benefit insured as the consequence of the insured event
Insurance premium (classification):
– net premium: is calculated by means of the so-called equivalence principle, according to which the expected loss of insurer should be zero
– gross premium (office premium): is the expense-loaded net premium (usually including the security loading), which covers expenses of the insurer
– classification according to premium payments:
– single premium
– periodic premiums of a constant amount (level premiums) usually at the beginning of stipulated periods (months, quarters, years)
– periodic premiums of varied amounts
– written versus collected premium: is classification according to payment status
– adjusted premium: is periodically increased in accordance with the inflation
– special modes of premium payments: e.g.
– paid-up policy: means that the policy is converted to a mode with reduced
benefits (mainly due to the premature cessation of premium payments)
– waiver: is an exemption from premium payments (mainly due to disability of the policyholder)
Affordable price of insurances, visit insurance quote and life insurance
Term of insurance is the period of insurance cover, according to which one classifies:
– temporary insurance: has a limited period of cover stipulated in the insurance contract
– perpetual insurance: has a period of cover, which in not limited by the insurance contract (e.g. a whole life annuity)
– deferred insurance: has a period of deferment, by which the given insurance cover is postponed (e.g. a deferred life annuity); in the case of short-term deferment (in order to reduce moral hazards of clients), the concept of waiting period is used instead
Participants in life insurance (classification):
– insurer: is a legal entity that is entitled according to law to carry out insurance
– policyholder: is a natural person or a legal entity that concluded an insurance contract with the insurer (an important obligation of policyholders is to pay insurance premiums)
– insured (person): is a natural person, the life and health of which is the subject matter of the insurance (in non-life insurance the insured may be a legal entity, as well)
– beneficiary: is a natural person or a legal entity that has right to the benefit insured as the consequence of the insured event
Insurance premium (classification):
– net premium: is calculated by means of the so-called equivalence principle, according to which the expected loss of insurer should be zero
– gross premium (office premium): is the expense-loaded net premium (usually including the security loading), which covers expenses of the insurer
– classification according to premium payments:
– single premium
– periodic premiums of a constant amount (level premiums) usually at the beginning of stipulated periods (months, quarters, years)
– periodic premiums of varied amounts
– written versus collected premium: is classification according to payment status
– adjusted premium: is periodically increased in accordance with the inflation
– special modes of premium payments: e.g.
– paid-up policy: means that the policy is converted to a mode with reduced
benefits (mainly due to the premature cessation of premium payments)
– waiver: is an exemption from premium payments (mainly due to disability of the policyholder)
Affordable price of insurances, visit insurance quote and life insurance
