INSURANCE: Term In Insurance


The term often used in Insurance, among others:

Insurance policy

Letter of Agreement containing the insurance agreement between the Insurer and the Policyholder.


The person who applied for an insurance. If the insurance has been approved then the applicant will become the Policyholder.

Policy Holder (Policy Owner)

Insurance policy holder.


Someone who becomes the object of insured or insured.


Persons or composed of several persons designated to receive insurance benefits or sum insured


A sum of money that is borne by the Insured and listed in the policy and has been approved to be paid to the Insurer as agreed.

Sum insured

The value of money stated in the insurance policy to be paid by the insurer to the Holder.

Cash value

A sum of money listed on the policy to be paid to the Policyholder if the policy is canceled before the end of the insurance period or when the insured dies.

Insurable Interest

The relationship between the insured and the object insured by the company, concerning the things that have great potential to cause harm that can cause financial loss for the Insured.


Also Read:

INSURANCE: Basic Principles of Insurance

INSURANCE: Planning an Insurance Program

INSURANCE: Types of Insurable Risks

INSURANCE: What is Insurance?

INSURANCE: Insurance Functions and Purposes

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INSURANCE: Insurance Functions and Purposes

  An accident or misfortune can happen at any time. Therefore it is good we consider to follow the insurance program, or in everyday language is said: enter insurance. It is intended to minimize or reduce the risk arising from the accident. With insurance we can transfer the risk to the insurance. In other words […]

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INSURANCE: Planning an Insurance Program

  To follow an insurance program you should plan to get maximum results. Among other things we need: Setting Insurance Objectives. In managing risk, there are things that are underlying, such as the possibility of damage or loss of property you have. Your decision to buy a new car should be balanced by protecting against […]

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