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Beneficiary (nominee)The person who receives the payout from a life insurance policy when the insured person dies.Cash valueThe savings component of a permanent life policy that grows over time and can be borrowed against or withdrawn.Claim settlement ratioThe share of claims an insurer paid out in a year. A high, steady ratio suggests claims are honoured reliably.Co-payA share of each claim you agree to pay yourself, common in health insurance. A higher co-pay lowers your premium.Comprehensive coverMotor insurance that combines mandatory third-party liability with own-damage cover for your own vehicle.DeductibleThe amount you pay out of pocket on a claim before the insurer pays the rest. A higher deductible lowers your premium.Family floaterA single health policy that shares one sum insured across all covered family members instead of separate policies.IDV (Insured Declared Value)The current market value of a vehicle, and the maximum a comprehensive motor policy pays if it is stolen or written off.Liability coverageCover that pays for injury or damage you cause to other people or their property.No-Claim Bonus (NCB)A discount on your motor own-damage premium for each claim-free year, rising from 20% up to 50%.Permanent insuranceLife insurance that lasts your whole life and builds cash value (for example whole life), unlike temporary term cover.Pre-existing conditionA health condition you already have when buying cover. It may carry a waiting period or a higher premium.PremiumThe amount you pay — monthly or yearly — to keep an insurance policy active.RiderAn optional add-on that extends a base policy, such as critical illness, accidental death, or waiver of premium.Sum assuredThe fixed amount a life insurance policy pays out on death — the headline cover amount.Sum insuredThe maximum a health or general insurance policy will pay in a single policy year.Term insurancePure life cover for a fixed number of years with no maturity payout — the cheapest way to buy a large death benefit.Third-party liabilityLegally required motor cover that pays for damage or injury you cause to others, but not to your own vehicle.Umbrella insuranceExtra liability cover that sits above the limits of your auto and home policies.UnderwritingThe insurer's process of assessing your risk to decide whether to cover you and at what premium.Waiting periodA set time after buying health cover before certain conditions or treatments become claimable.Whole life insurancePermanent life cover for your entire life that also builds cash value, costing far more than term insurance.

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