Unit+1.4+Important+terms+used+in+insurance

=Important terms used in insurance=

Cover note
Summary document issued by an insurer as interim cover for the period before a formal insurance policy is issued.

Insured
The insured refers to the policyholder or the party who takes out an insurance policy.

Insurer
The insurer refers to the insurance company.

Premium
It is the actual amount of money charged by insurance companies for active coverage of the insured, generally collected in monthly or semi yearly payments.

Policy
An insurance policy is a contract between the insured and the insurer where the insured has to pay a certain amount of premium to the insurer. If the insured suffers any losses, the interest will compensate him or her.

Beneficiary
Beneficiary refers to the person who is designated to receive death benefit from a life insurance policy.