Insurance is a contract signed by an entity (individual or company) and a company (Insurance company) with the latter agreeing to provide financial protection or reimbursement in case of specified losses as stated in the contract (policy). In simple terms, the essence of insurance is to be able to protect you and everything you love in case of unforeseen circumstances.
The Nigerian populace is slowly understanding the importance of insurance and this has led to the gradual acceptance of insurance. The change can be attributed to the effects of the pandemic. At Tangerine life we are dedicated to ensuring that insurance is available to everyone, regardless of your socio-economic status.
We know that in your quest to get insurance you might come across some word or terms that you might not understand. Not to worry, we have come up with 10 insurance lingua you need to get accustomed to.
Premium
This is the amount of money a person or a business pays to get an insurance policy. In simple terms, a premium is what an insurance company charges to keep you covered. Premium can be paid monthly, yearly or it can be a one-off payment, depending on the policy. premiums are paid for insurance policies that cover healthcare, home, life insurance and more.
Claim
An insurance claim is a formal request by a policyholder asking for payment based on the terms agreed between him and the insurance company. When the validity of a claim is confirmed, the insurance firm pays the policy holder the agreed sum.
Claims History
The claims history refers to the list of losses suffered by the insured and have rightfully been covered by the insurance company. A claims history is a record kept by the insurance company.
Broker
An insurance broker is a professional that plays the role of an intermediary between an individual or a business and an insurance firm. A broker usually represents the consumer of an insurance policy in order to find one that best suits the consumer.
Cover
Cover is the protection that is provided by an insurance firm in case of unforeseen circumstances. Examples of covers includes the Life Insurance cover provided by Tangerine life that ensures that your loved ones are securely provided for with a guaranteed payout worth up to ₦5,000,000 to take care of life's essentials when you can't.
Insured
An individual or business whom the insurer (insurance company) agrees to provide cover against certain losses, as agreed on the terms of the insurance contract. The insured has the right to make a claim in the case of any loss.
Insurer
An insurance firm that agrees to take on the risk of the insured and pays a compensation in case of any loss as agreed in the contract.
Insurance Policy
This is the contract signed by the insured and the insurer. The policy agreed on determines the claim the insured can make and the payment to be made by the insurer in case of a loss.
Third Party
A person or entity who is not an actual party to an insurance policy contract but can benefit from an insurance policy for injury or damages against an insured under a contract of insurance.
Valuation
Value of an item to be insured, usually determined by an appraisal. Before an item is insured, its value is usually determined and the value determines how much premium the insured is to pay to get covered.
When you get insured, you are going to come across some if not all of these terms and you will already know what they mean and how they benefit you. The importance of protecting yourself and everything you love cannot be overemphasized. For example, having health insurance protects you from having to spend unplanned sums of money on medical expenses and at Tangerine, we provide health insurance for individuals and organisations through tht.tangerine.africa.
