Insurance Basics

It is basically the extent of benefits that an insurance company would give you in case of an event or condition stated in your insurance policy. For example, up to a PHP 100,000 coverage is given to you should you be diagnosed with and hospitalized due to severe dengue. The coverage depends on the nature of the event and the amount of your premium.

A claim is a formal request you make to an insurance company in case of an unfortunate event. For example: if you get into an accident that is covered by your insurance policy, you can file a claim which we will then validate. Once approved, we’ll pay you or your beneficiaries accordingly.

Any document that confirms a change, if any, made to an insurance policy. For example: if you increase your policy coverage, an endorsement will be issued. For an endorsement to be valid, the form number must be reflected in your insurance policy’s details page.

The day when your insurance coverage becomes active as stated in your policy contract. It is typically when you have completed the application process and paid the initial premium.

An event, cause, or conditionthat an insurance company does not able to cover under your policy and would not pay for. It is a reason that a claim could be denied.

It is the government body that supervises and regulates insurance companies. A company must be licensed by the Insurance Commission before it is able to sell insurance policies.

A contract between you and an insurance company. It contains both parties’ responsibilities, the extent of your benefits, and payment details. It is basically the terms and conditions of your insurance.

The person who is covered by the policy.

A date each year that is the same month and day as your effective date.

The person who applies for the policy. This is the person with the rights to the policy.

The 12-month period between your policy anniversaries.

A sum of money we pay you after a claim has been accepted as valid.

A condition or illness that you are already aware of or have previously received treatment for prior to purchasing your insurance policy.

The amount of money you need to pay to be covered under an insurance policy.

The last day your premium should be paid. Paying beyond this date may incur late fees or penalties.

The date after the end of term of a policy.

The guaranteed amount which you or your beneficiaries will be paid if a covered event (e.g., disability, death) happens to you.

Also called a Rider. It is an additional coverage or benefit attached to your basic insurance. It usually comes with an additional premium and can be adjusted based on your needs.

The guaranteed amount which you or your beneficiaries will be paid if a covered event (e.g., disability, death) happens to you.

The date when your insurance coverage ends.

This is the duration from the effective date of your policy that must pass before you can make any valid claim. The waiting period also applies when you make changes to your benefit coverage, which starts from the effective date of change.