Glossary- Life Insurance, Health Insurance, Retirement

Date of commencement

The date on which cover begins, following acceptance of the risk by the insurer.

Dating Back

For non investment linked policies, the commencement date of the policy can be backdated within the same financial year. This enables the life assured to take advantage of the lower premium applicable to a younger age as the premiums is calculated with reference to the date of commencement. The insurance cover will however begin only from the date of acceptance. The extra premium on account of dating back has to be paid upfront.

Death Benefit Payable

The amount payable, as stated in a life insurance policy, to the designated beneficiary(ies) upon the death of the insured. The amount paid is the face value, plus any riders that are applicable, less any outstanding loans.

Declaration

This is the statement or section of the form where the person is required to declare that the statements or answers are given fully and truthfully and that if it were not so, there would be legal consequences.

Deffered Annuity

An annuity contract under which periodic benefits are scheduled to begin at some designated future date after the date on which the annuity was purchased.

Depreciation

A decline in the investment's value.

Doctrine of Utmost Good Faith

Insurance contract is issued on the basis that the applicant truthfully and fully discloses everything he or she knows about his or her health. This arises from the recognition that the insurance company is in a disadvantageous position, as the insurer does not know anything about the applicant. Similarly, the insurance company should deal with the applicant with honesty and integrity.