Policy. Ang official contract between the policyholder and the insurer. Narito ang terms ng inyong agreement regarding coverage, payments, conditions, limits, and more.
Policyholder. Ang registered owner ng policy. Depending on the kind of insurance, the policyholder may or may not be the insured.
For example: Kumuha ka ng education insurance for your son. Ikaw ang policyholder, while your son is the insured.
Insured. Ang pinoprotektahan ng insurance. Depending on the kind of insurance, it can be you, your family, or your assets.
Insurer. Ang insurance company na magbibigay ng coverage sa insured.
Beneficiary. This often applies to life insurance. Sila ang magiging recipient ng insurance benefit in case of the insured’s passing.
For example: May life insurance si Juan with Php 1M death benefit in case of death. Beneficiary niya ang asawang si Maria. If Juan dies while covered by the policy, then Maria receives the Php 1M benefit.
Dependent. This often applies to health insurance. These are people nominated by the policyholder para makatanggap ng same protection under the policy.
Policy limit. Ang pre-agreed maximum amount na ibibigay ng insurer in case of accident or loss.
For example: You have health insurance with a Php 100,000 policy limit for dengue. Ito ang max amount na ire-reimburse ng insurer in case you get dengue.
Premium. Ang total cost ng insurance that must be paid para ma-enforce ang policy. Usually, this is split into monthly payments. Ang premium ay determined ng insurer based sa amount of risk na nae-encounter ng insured.
For example: You have life insurance worth Php 100,000 na payable in the next 5 years (or 60 months). This means you need to pay Php 1,666.66 as monthly premium.
Oftentimes, kapag kinulang ang monthly budget, insurance is the first thing people stop paying for. However, pwedeng ma-cancel completely ang policy mo if you miss just one payment. This is why you should get insurance with the most affordable premium. For instance, GInsure offers dengue and COVID-19 insurance for as low as P39/month. It’s the lowest insurance premium you’ll ever get.
Deductible. In case of accident or damage, ito ang initial amount na kailangang bayaran out-of-pocket ng policyholder. Once maabot ang maximum deductible, saka mae-enforce ang insurance coverage.
For example: May Php 5,000 deductible ka on your car insurance. Na-damage ang iyong kotse and you need Php 20,000 for repairs. Because of your deductible, the insurer will only cover Php 15,000.
Hindi lahat ng insurance ay may deductible. This is often common sa property, car, o health insurance para pigilan ang insured na maging reckless. With a deductible, mas iingatan mo ang iyong asset. It’s because partly responsible ka sa pagbabayad in case of damages. Kapag mas mataas ang deductible, mas mababa ang iyong monthly premiums.
Period of coverage. The length of time na covered ang insured ng policy. This can range from one year to the insured’s entire lifetime.
Riders. Additional conditions na pwedeng idagdag o ibawas sa initial policy to suit the insured’s needs.
Claim. Ang request ng policyholder to be compensated for expenses na covered ng insurance.