Policy Servicing Glossary
Learn the terms in policy servicing
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Term |
Definition |
Assignment |
Transfer of ownership and rights of the policy to a natural person or corporation. Assignments will override nominations/trust. |
Auto-Trustee/Statutory Trustee |
An individual nominated by a non-Muslim policyholder as a beneficiary becomes an automatic trustee if he/she is the:
|
Surrender of Reversionary Bonus |
Surrendering of accumulated Reversionary Bonus of an insurance policy. |
Endorsement |
The process to change or update a policy's coverage and details that might affect the coverage and premium of the policy. |
Fund Switching |
Change of investment portfolio from moving some or all units of an existing fund to a new one or more funds, subject to switching charges (if any). |
Lapse |
Termination of a policy due to unpaid premiums within the required period. |
Nominee |
The person nominated by the policyholder to be the beneficiary and to receive the proceeds of an insurance policy upon the death of the insured. |
Policy Loan |
A loan made by an insurance company to a policyholder on the security of the cash value of the policy. |
Premium Redirection |
Change of future premium investments towards a different fund or set of funds. |
Re-Assignment |
Transfer of ownership and rights of the policy from existing Assignee back to the policyholder. |
Revival |
A process of reactivating lapsed/out-of-coverage policies by remitting full or partial repayment of outstanding premiums subject to the type of revival. |
Surrender |
Termination or cancellation of an insurance policy for its cash value before maturity date or due to death of the insured, subject to a sum of surrender charges (if any). |
Top-Up |
One-time payments; an additional amount of premium that is put into the policy. |
Trustee |
An individual appointed by a non-Muslim policyholder to manage the policy monies with the beneficiary's interests in mind. |
Withdrawal |
Cancellation of units partially from an insurance policy which will result in a reduction in the account value to the extent of the amount withdrawn and withdrawal charges (if any). |
Paid Up |
Reduction of sum assured with conversion of cash value into payment for future premium. |
Survival Benefit |
An amount payable at the end of specified durations which is fixed and predetermined. |
Maturity Value |
The time when an insurance company will pay a sum of maturity value to the policyholder, if the policy has not been previously invoked to cover contingencies like death. |
Maturity Benefit |
The sum of maturity value paid to the policyholder when the policy matures. |