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Insurance
PREV DEFINITION
A professional who provides specialized guidance and advice for investment in various insurance schemes is an insurance advisor or insurance consultant.
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Joint and Survivor Annuity (Joint Annuity) Plans
Joint and survivor annuity plans are insurance plans which are made for two annuitants wherein regular payments are provided till the death of both the beneficiaries.
Definition: Investment risk can be defined as the probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
Description: Stating simply, it is a measure of the level of uncertainty of achieving the returns as per the expectations of the investor. It is the extent of unexpected results to be realized.
Risk is an important component in assessment of the prospects of an investment. Most investors while making an investment consider less risk as favorable. The lesser the investment risk, more lucrative is the investment. However, the thumb rule is the higher the risk, the better the return.
Also See: Return, Annuity, Insurable Interest, Insurability
PREV DEFINITION
A professional who provides specialized guidance and advice for investment in various insurance schemes is an insurance advisor or insurance consultant.
NEXT DEFINITION
Joint and Survivor Annuity (Joint Annuity) Plans
Joint and survivor annuity plans are insurance plans which are made for two annuitants wherein regular payments are provided till the death of both the beneficiaries.
Related Definitions
- 3rd Party InsuranceAbsolute Assignment
: Motor third-party insurance or third-party liability cover, which is sometimes also referred to as the 'act only' cover, is a statutory requirement under the Motor Vehicles Act.It is referred to as a 'third-party' cover since the beneficiary of the policy is someone other than the two parties involved in the contract (the car owner and the insurance company). The policy does not provide any
Accidental Death Benefit And DismembermentAn absolute assignment is the act of complete transfer of the ownership (all rights, benefits and liabilities) of the policy completely to other party without any terms and condition.Description: Absolute assignment shifts the ownership of the insurance policy.For instance, a policy owner X wants to gift his life insurance policy to another person named Y. Hence X is doing absolute assignment.
Actual Cash ValueAccidental death benefit and dismemberment is an additional benefit paid to the policyholder in the event of his death due to an accident. Dismemberment benefit is paid if the insured dies or loses his limbs or sight in the accident.Description: In an event of death, the insured person gets the additional amount mentioned under these benefits in the insurance policy. These are the supplementary
A valuation of the damaged property, i.e. its monetary worth at market value immediately preceding the occurrence of the loss, is called actual cash value of the property. It gives the estimate of the cost of replacement or repair of the damaged asset.Description: To ascertain the exact extent of loss, the insurance company undertakes an evaluation of the property before and after the loss occur
- Actuarial ScienceActuaries
Actuarial Science is a discipline that deals with assessing the risks in insurance and finance field using various mathematical and statistical method.Description: The professionals who carry out these tasks of ascertaining, analyzing and providing solutions of future uncertainties having financial risks are the actuaries. Mathematics of probability and statistics are the major tools they use to
Adverse SelectionA person with expertise in the fields of economics, statistics and mathematics, who helps in risk assessment and estimation of premiums etc for an insurance business, is called an actuary.Description: Insurance business requires advanced statistical and analytical skills for evaluation of risks and returns associated with each proposal. Insurance companies employ these experts from the field of
AgentAdverse selection is a phenomenon wherein the insurer is confronted with the probability of loss due to risk not factored in at the time of sale. This occurs in the event of an asymmetrical flow of information between the insurer and the insured.Description: Adverse selection occurs when the insured deliberately hides certain pertinent information from the insurer. The information may be of crit
An agent is a person who represents an insurance firm and sells insurance policies on its behalf.Description: Generally, there are two types of such agents who reach the prospective parties that may be interested in buying insurance. These are independent agents and captive or exclusive agents.Independent agents may represent many insurance firms and receive commission for their services a
- Annualized PremiumAnnualized Premium Equivalent
The total amount of premium paid annually is called the annualized premium.Description: Any insurance policy comes up with many premium payment options. Premium can be paid monthly, quarterly, semi annually and annually.For instance, if the monthly premium is Rs 2000, then the annualised premium will be 2000*12 = Rs 24000Also See: Insurance, Concealment, Bancassurance
Annualized premium equivalent (APE) is a common measure of ascertaining the business sales in the life insurance industry. It is the sum of the regular annualized premium from the new business plus 10% of the first single premium in a given period.Description: APE is computed as:APE = Annualized regular premium + 10 % of single premium (Including top-up premium). Where annualized regular pre
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As an expert in finance and investment, I have an in-depth understanding of various concepts and terms related to the economic landscape. My expertise is backed by extensive knowledge and experience in the field, allowing me to provide valuable insights into topics ranging from insurance to mutual funds, mathematics to real estate, and much more.
Now, let's delve into the key concepts used in the provided article:
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Investment Risk:
- Definition: Investment risk refers to the probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
- Description: It is a measure of the level of uncertainty of achieving the returns as per the expectations of the investor. The extent of unexpected results to be realized is a crucial factor in assessing investment risk.
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Categories:
- The article covers various categories such as Economy, Insurance, Equity, Transportation, Sports, Space Technology, Entertainment, Astronomy, Analytics, Commodity, Education, Finance, Human Resource, Mutual Fund, Mathematics, Real Estate, Marketing, Security, Shipping, Retail, HR, Software Development, and Testing.
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Insurance Advisor:
- Definition: An insurance advisor is a professional who provides specialized guidance and advice for investment in various insurance schemes.
- Related Concept: Joint and Survivor Annuity (Joint Annuity) Plans, which are insurance plans designed for two annuitants with regular payments provided till the death of both beneficiaries.
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Actuarial Science:
- Definition: Actuarial Science is a discipline that deals with assessing risks in insurance and finance using mathematical and statistical methods.
- Related Concept: Actuaries, who are experts in economics, statistics, and mathematics, play a crucial role in risk assessment and premium estimation for insurance businesses.
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Adverse Selection:
- Definition: Adverse selection occurs when the insurer faces the probability of loss due to risk not factored in at the time of sale.
- Description: This phenomenon occurs when the insured deliberately hides certain pertinent information from the insurer, leading to a potential imbalance in risk assessment.
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Annualized Premium Equivalent:
- Definition: Annualized premium equivalent (APE) is a measure of business sales in the life insurance industry, calculated as the sum of the regular annualized premium from new business plus 10% of the first single premium.
- Description: APE provides insights into the performance and sales metrics of life insurance businesses over a specific period.
These concepts represent a fraction of the vast knowledge encompassed in the finance and investment domain. If you have specific questions or need further clarification on any of these topics, feel free to ask.
