General insurance Life Insurance Terms You Should Know About

[Deleted member 13140]

Life Insured:​

The Persons Life Is coveredv by the insurance policy, obviously haha ?

Life Coverage -
This type of life coverage lasts for only a specific period of time.
(the term) and has a defined ending date

Primary Beneficiary
The person or persons designated to receive the proceeds of the life insurance policy upon the death of the Insured.

Lapsed Policy​

A policy will get terminated due to non payment of the premium amount. The policy will get lapsed, only when the due premium is not paid even after the grace period.

Although some life insurance companies offer the body to revive the lapsed Policy I'd Outstanding premiums are paid by the supposed policyholder

 

[Jamoflondon]

Your analysis is true but About the coverage part, as far as I know about it I think it depends on the type of life insurance policy the client opt for. A short life insurance last for a particular period of time you choose unlike the other one which is whole life

 

[btaliat]

Thanks for this educative post. But I think the lapsed policy is somehow cheating on the insured person because there may be cogent reasons why the insurance premium may not be paid. They should at least compensate before the termination in order not to be as if the company chests on him.

 

[Mandy96]

The lapsed policy part, I think it is the most important aspect every client should know about. Although, this is obvious and easy to know and understand since the premium payments is what validates the whatever policy plan you choose to buy from the insurance company. But honestly, it should be known by every learned person

 

[Mika]

In my home country, you get a grace period of the entire year, until your next premium date arrives. If you miss paying two premiums consecutively, only then your policy will lapse. You will have to pay the fines along with the premium if you do not pay in time if your due date expires.