Policy Servicing Glossary
Confused by some terms in your policies? Understand them with this glossary.
| Term | Definition |
|---|---|
| Assignment | Transfer of ownership and rights of the policy to a natural person or corporation. Assignments will overide 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:
|
| Cash 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 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 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partially from an insurance policy which will result in a reduction in the account value to the extent of the amount withdrawn and withdrawal charges (if any) |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 policy holder, if the policy hasn’t been previously invoked to cover contingencies like death. |
| Maturity Benefit | The time when an insurance company will pay a sum of maturity value to policy holder, if the policy has not been previously invoked to cover contingencies like death. |