Terms Normally Used In Life Insurance Ireland
Every contract document of life insurance Ireland has the word risk in one of the pages. Risk is actually the main reason why people desire to be insured. Other words that will be found in such a document are surrender value, policy conditions and premium.
Premium is the fee paid for being insured. Some companies are reputable for levying affordable premiums while some are known for levying exorbitant premiums. The premium to be paid does not only depend on company policy. It also depends on the condition of the person who desires to be insured. Most companies make it one of the stipulations that premiums must be paid punctually. If not paid punctually, a penalty may be levied.
The premium due each and every month will be arrived at using mathematical formulas. There are different formulas that are usually used. The variables of each formula will represent different conditions of the insured person. An actuary is the professional who knows how to interpret different variables and use them with formulas. Risk will actually be a main variable. A main variable is the variable which plays a huge role in determining the outcome of a calculation.
Possibility of occurrence of a risk situation is the main motivation behind being insured. In most life insurance contracts, the major risk situation is the death of insured person. Such a death can be caused by natural factors or by pure negligence. If one does not take care of his health, one can easily die as a result of negligence. Taking care of one's health involves seeking treatment for diseases that afflict one and being vaccinated so as not to get some diseases.
It has to be determined by the insurer whether one is health conscious or whether one is not health conscious. A health conscious individual strives to work towards preventing the eruption of hereditary disease conditions. Hereditary disease conditions will lie dormant if certain health measures are put in practice. If one is very negligent, such conditions will be very active. Diabetes is one hereditary disease condition. Diabetes will lie dormant if one avoids sugary foods. A diabetic person is supposed to stick to a diabetic diet.
Some disease conditions automatically disqualify one from being covered. These are conditions that are terminal in nature. A terminal disease condition presents an insurer with many different variables which are hard to evaluate. This is the basic reason most insurers shy away from insuring people with terminal illnesses. Some insurers however take the bold move to cover people with terminal illnesses. Such insurers are found in Ireland.
Surrender value is also a popular term in this domain. As the name implies, this is the total amount of money given to an insured person at the expiration date of the contract. The amount given will depend on the contributions that have been made over the years.
An array of terms features in the contract document of life insurance Ireland. The term risk if one of the terms that features. Risk means different things to different people.