Insurance Vocabulary to Know, Rookie Edition, Easy to Understand

Insurance Vocabulary to Know, Rookie Edition, Easy to Understand

1. The main character in the insurance contract

First we need to know who's who on that piece of paper.

The insured: "ourselves," or the person who will be covered.

Insurer: It's the "insurer" we deposited to make him take care of the risk.

Beneficiary: "The person who gets the money" if there is an unforeseen occurrence with us (such as a parent, child or spouse).

2. Money to pay and to get.

In the insurance world, there are three main terms that you will always find on the policy homepage that relate directly to the money in your pocket:

Premium: is the "money we have to pay" to the insurer in accordance with the agreed period (e.g., annual, six-month or monthly) in exchange for the company taking care of the risk for us. If we stop paying the allowance, the coverage may end or fall out of age.

Sum Insured: This is the "maximum limit" or main sum that the insurer promises to pay us (or the beneficiary) when the specified event occurs. For example, if you take out 1 million baht of capital insurance, when you die, the company will pay 1 million baht to the family.

Cash Back / Dividend: is the "profit or discount money" that the insurer returns to us as a condition in the policy. It is usually found in certain types of collectible insurance or insurance. This money we receive while the contract is valid or received at the expiration of the contract.

Trick: When choosing insurance, see if the "premiums" we can pay per year (should not exceed 10-15% of the annual income) and whether the "insurance capital" covers the costs or burdens we have.

3. Rules to be careful (this one must read carefully!)

Many people make mistakes here because they think that paying will suddenly claim or claim everything.

Policy: A "counterparty book" that collects all the details of what they will help us and what they will not help.

Waiting Period: The period after buying insurance that we cannot claim (for example, health insurance usually has a waiting period of 30-120 days to prevent people with an existing disease from applying)

Exclusion: Something that "insurance does not pay," such as a pre-insurance disease, or some specified dangerous event.

Deductible: A certain amount of money that "we have to pay ourselves first" and the company will pay the rest (often in car insurance or some health insurance to make premiums cheaper).

4. Privileges we should know

Grace Period: If you forget to pay the scheduled allowance, the insurance will not be immediately out of age. Most will extend it to 30-31 days.

Free-look Period: Cancellation of the policy within 15 days (from the date of receipt of the book). If we read the details and feel unsatisfied, we can return the book and ask for a refund (but there may be a small fee).

Short thought: Insurance is not a disposable payment, but a "risk transfer" from our pocket to the insurer's pocket.

Interested in buying or consulting insurance, contact:

Tel: 0851989914

Line: @ adelktaxa

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# Easy to understand insurance

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# Insurance terms should know

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