LIC - Abbreviations, Terms and Meanings
LIC Endowment Plans LIC Health Plan LIC Money Back Plan LIC Pension Plan LIC Term Plan LIC TermsIn this post, I will share the full forms and meanings of some popular terms used in LIC of India. Go through the post and understand various things about LIC's related things.
- ACCIDENT BENEFIT: Provides for payment of an additional benefit equal to the sum assured in installments on permanent total disability and waiver of subsequently premiums payable under the policy.
- A.S.A.: Actual Sum Assured.
- AGE LIMITS: Stipulated maximum and minimum ages below and above which the Corporation will not accept applications or may not renew policies.
- AGENT: An LIC insurance company representative licensed by the state that solicits, negotiates or effects contract of insurance, and provides service to the policyholder for the Life insurance.
- ANNUITY: It is a scheme which is under certain amount is paid yearly / half-yearly / quarterly / monthly interval.
- ANNUITANT: Annuitant is the person who receives certain amount at yearly / half-yearly / quarterly / monthly interval.
- ASSIGNMENT: A transfer of the right and benefits of the insurance policy from one person to another. Assignment means legal transference. A method by which policyholder can appoint a person on his interest to another person. An assignment can be made by an endorsement on the policy document or as a separate deed. Assignment can be of two types (a) Conditional (b) Absolute.
- BENEFICIARY: The person who receive the benefit of a policy in case of death during the term of policyholder who receive the benefit on maturity.
- BONUS: Bonus is the amount added to the basic sum assured under a with-profit life insurance policy.
- B.M.CLUB: Branch Manager's Club.
- BUSINESS INSURANCE: A policy, which primarily provides coverage benefits to a business as, contrasted as an individual. It is assured to indemnify a business for the loss of services of a key employee or a partner who becomes disabled.
- CLAIM: A request for payment of contractual benefits by the insurer that is made by the insured or the beneficiary.
- C. M. Club: Chairman's Club
- C.I.R: The rider covers major illnesses by paying extra premium.
- DATING BACK: Dating Back or Back Dating is an option to the life assured to get the advantage of lower age wherein the policy is commenced from a date earlier than the date of singing of proposal form. However back dating is limited to one year.
- D.O.C.: Date Of Commencement.
- DAYS OF GRACE: Policyholder are expected to pay premium on due dates. A period of 15-30 days is allowed as grace to make payment of premium; such period is days of grace.
- DEATH BENEFITS: The benefits received by the beneficiary (ies) on the death of assured.
- D.G.H.: Declaration of Good Health.
- DEFERRED ANNUITY: An annuity plan where the first annuity payment become payable after a chosen period that exceeds one year.
- DEFERMENT DATE: It is a date on which the deferment period ends.
- DEFERMNENT PERIOD (D.P.): Deferment period is the period from the date of commencement of policy to the date of commencement of risk.
- D.O.: Development Officer.
- D. M. CLUB: Divisional Managers Club.
- D.A.B.: Double Accident Benefit.
- ENDOWMENT PLAN: A plan in which the amount is paid to the policyholder if the outlives the tenure of the contract or to the beneficiary if the insured person dies before the date on which the policy matures.
- F. A. B.: Final Additional Bonus.
- F. M. R.: Full Medical Report.
- GUARANTEED ADDITION (G. A.): Guaranteed addition is calculated at the rate per every thousands of sum assured. They are added to the basic sum assured and are payable on admittance of claim. The benefit is allowed only for each year for which premium are paid.
- IRDA: The acronym for the Insurance Regulatory and Development Authority of India. It is apex body overseeing the insurance business in India. It protects the interest of the policyholder, regulates, promotes and ensures orderly growth of the insurance industry and for matters connected therewith or incidental thereto.
- LAPSE: The termination of insurance policy due to non-payment of premium.
- LAST BIRTH DAY (L. B. D.): Age on last Birthday.
- LIFE ASSURED (L. A.): Life Assured refers to the person whose life is being insured.
- LIFE INSURANCE: A contract provided for the payment of a sum of money to the person assured or failing him, to the person entitled to receive the same, on the happening of certain event for the consideration. Here, sum of the money refers to sum assured/benefits; certain event refers to contingent event; consideration refers to the premium.
- LOYALTY ADDITION: Under certain life insurance policies loyalty additions are giver as an additional benefit to the policyholder. The rate of addition depends on the LIC's performance and is allowed only if the is in full force.
- M. D. R. T.: Million Dollar Round Table. It is the premium association of Financial Professionals.
- MONEY Back PLAN: A plan in which part of the sum assured is paid back to the policyholder at regular intervals.
- MORAL HAZARD: Moral Hazard is said to exist in the case where we notice the absence of a genuine need for the life insurance or when the proposal for insurance is submitted by an individual beyond his means.
- NEAR BIRTHDAY: Age on nearest Birthday.
- NOMINEE: Nominee is a person who is nominated to receive the amount under a policy and to give a valid discharge to the insurer on the settlement of the claim under a life insurance policy.
- NOMINATION: A provision by which a policyholder can designate any person to receive the policy money in the event of his death.
- NON-STANDARD LIFE: Any individual, who cannot be granted a policy under normal rates of premium but can be granted with an extra premium over normal rates of premium, is considered as Non-Standard Life.
- N. S. A. P.: Non Standard Age Proof.
- NOTIONAL CASH OPTION (N. C. O.): On this amount Annuity/Pension is calculated and is given to the policyholder.
- PAID-UP VALUE: Paid-up value is the reduced amount of sum assured paid by the insurer in case of discontinuation of the payment of premiums after paying the full premium for the first three years.
- P. F. O.: Personal Financial Questionnaire.
- PDB: Permanent Disability Benefits.
- POLICYHOLDER: The person who owns the life insurance policy.
- PREMIUM: Premium is the amount paid to secure an insurance policy.
- PROPOSAL FORM: It is a form which is to be completed for securing an insurance policy.
- PREMIUM WAIVER BENEFITS: (PWB): Premium waiver benefits are the benefits which can be waived in the event of death of the proposer.
- RIDER: Add-on benefits available at the option of the policyholder that may alter certain features of the policy by increasing or restricting benefits
- SUM ASSURED (S. A.): Sum Assured is the amount that an insurer agrees to pay on the occurrence of the event.
- S. U. C.: Sum Under Consideration.
- SURRENDER VALUES: Surrender Values is the amount payable to the policyholder on surrendering his right under a policy and terminating the contract of insurance.
- TERM: Term is the period for which insurance coverage is given.
- T. R.: On death of Life Assured during the term cover under TR, an amount equal to Term Assurance Sum Assured is payable.
- UNDERWRITING: Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.
- VESTING AGE (V. A.): The age at which the receipt of pension starts in an insurance-cum-pension plan.
- WHOLE LIFE INSURANCE: A life insurance policy where benefits are payable to the beneficiary on the death of insured, whenever that occurs. The premium payment can happen for a specified number of years or throughout life.
- Z. M. CLUB: Zonal Manager's Club.
