Knowledge Center

Glossary

• Cashless vs. Reimbursement Claim A cashless claim settles directly between the insurer and a network hospital, so you pay only what's outside coverage; a reimbursement claim means paying upfront yourself and getting repaid afterward - network hospital availability decides which applies. Insurance
• Claim Settlement Ratio Claim settlement ratio is the percentage of claims an insurer paid out of total claims received in a year - a useful, but incomplete, signal of how reliably an insurer honors claims. Insurance
• Co-Payment (Co-Pay) Co-payment is a fixed percentage of every claim that you pay yourself, with the insurer covering the rest - common in senior citizen and some employer-provided policies, and worth knowing before a hospital bill arrives, not after. Insurance
• Deductible A deductible is a fixed amount you pay out of pocket before the insurance coverage kicks in on a claim - distinct from co-pay, which is a percentage applied to the whole claim rather than a flat threshold amount. Insurance
• Endowment Plan An endowment plan combines a smaller life insurance payout with a fixed/modest savings component - if you survive the term, you get a maturity benefit; if you don't, your nominee gets the sum assured. Insurance
• Floater Policy A family floater policy covers an entire family under one shared sum insured, rather than each member having a separate individual sum insured - generally cheaper, but the shared limit can run out faster if multiple members claim in the same year. Insurance
• Free-Look Period The free-look period is a mandatory window - currently 30 days for life and individual health policies of one year or more - during which you can cancel a newly purchased policy for a near-full refund if it doesn't suit you. Insurance
• Grace Period for Premium The grace period is a short window after a missed premium due date - commonly 15-30 days - during which the policy stays active and a claim would still typically be honored, giving you a buffer to catch up before the policy actually lapses. Insurance
• Maturity Benefit Maturity benefit is the amount a traditional life insurance policy pays out if the policyholder survives the full policy term - a feature term insurance doesn't have, since term plans pay only on death, not survival. Insurance
• No-Claim Bonus (NCB) No-claim bonus rewards a claim-free year with either an increased sum insured or a premium discount at renewal - and it's specifically protected when you port your policy to a new insurer. Insurance
• Nominee vs. Beneficiary A nominee is who the insurer pays out to administratively after the policyholder's death; the beneficiary is who's legally entitled to keep that money - usually the same person, but not automatically guaranteed to be if a will or succession law says otherwise. Insurance
• Portability of Health Insurance Portability lets you switch health insurers at renewal while carrying forward your waiting-period credit, no-claim bonus, and pre-existing disease cover - avoiding a fresh start with a new insurer's full waiting periods. Insurance
• Pre-Existing Disease Clause A pre-existing disease is a condition you already had, or had symptoms of, before buying a policy - covered only after a specific waiting period, and only if honestly disclosed at purchase. Insurance
• Premium Premium is the amount you pay - typically annually - to keep an insurance policy active; missing a payment beyond the grace period can lapse the policy entirely, losing accumulated benefits. Insurance
• Rider A rider is an optional add-on to a base insurance policy, providing specific extra coverage (critical illness, accidental death) for an additional premium. Insurance
• Sum Assured Sum assured is the guaranteed amount a life insurance policy pays out on a covered event (typically death) - fixed at policy purchase, distinct from sum insured, which is the health insurance equivalent for the annual claim ceiling. Insurance
• Surrender Value Surrender value is the amount you receive if you exit a traditional (savings-linked) life insurance policy before its term ends - typically only a fraction of premiums paid, especially in the earlier policy years. Insurance
• Top-Up Health Cover A top-up health policy provides additional coverage once expenses cross a specified deductible threshold - a cost-efficient way to boost your total health cover without paying for a much larger base policy. Insurance
• ULIP (Unit Linked Insurance Plan) A ULIP combines life insurance with a market-linked investment component in one product - part of your premium buys life cover, part gets invested in funds you choose, with returns that depend on market performance. Insurance
• Waiting Period A waiting period is a set duration after buying a health policy before certain conditions or treatments become eligible for a claim - commonly longer for pre-existing conditions than for the policy's general coverage. Insurance