Compensa Life » Useful info » Glossary

Dictionary

We hereby offer explanations of the most common life insurance terms for your convenience.
For exact concepts see General Insurance Terms and Conditions and Specific Insurance Terms and Conditions.

Accident
shall mean the accident which occurs against the will of the Insured as a result of any abrupt, inadvertent, unexpected external forces and causes the death of the Insured including but not limited to sinking, heatstroke, sunstroke, chilblain, exposure to the gas or other toxic substances which accidentally penetrate the body except for food poisoning.
Accumulated Value
shall mean a monetary value of a specific Contract, which is calculated according to the Contract terms and conditions and the respective actuarial rules.
Additional Interest
shall mean the part of investment return established by the Insurer each year which depends on the amount of investment income received by the Insurer and is reduced by the costs of investments as well as other necessary costs and finally is allocated among valid insurance contracts in proportion to the Accumulated Amount of the respective insurance contract.
Annuity
shall mean the sequence of periodic Insurance Benefits payable to the Beneficiary until the death of the Insured or until the date of expiration specified in the Contract.
Beneficiary
shall mean a natural person or legal entity, stated in the Contract or appointed by the Policyholder or, in cases stated in the Contract, by the Insured, which acquires the right to the Insurance Indemnity or part thereof upon occurrence of the Insurable Event under procedure and terms stated in the Contract. Special terms and conditions or requirements for the Beneficiary may be stated in the separate Special Terms and Conditions.
Guaranteed Interest
shall mean the interest established by the Insurer and specified in the Insurance Certificate (Policy) which must be paid by the Insurer for the Accumulated Amount.
Insurable Event
shall mean an event stated in the specific Special Terms and Conditions and/or the Insurance Policy, upon which occurrence the Insurer pays the Insurance Indemnity under procedure and within terms stated in the Contract, however, in any case, only the event, which has occurred after the effective moment of the Contract and during the validity term of the Insurance Coverage and which is not the Uninsurable Event according to the Contract can be recognized as the Insurable Event. The Insurable Event must be substantiated with proper evidence and documents of a form and content acceptable to the Insurer.
Insurance Coverage
shall mean the obligation of the Insurer to pay the Insurance Indemnity to the Beneficiary under the terms and conditions and procedure stated in the Contract upon occurrence of the Insurable Event. Specific Insurance Coverage shall come into force on the first day 0.00 hour of the Insurance Period, but no earlier than on the next day from payment of the first or total Insurance Premium, and shall be valid until the last day 24.00 hour of the Insurance Period or termination or expiry of the Contract on other basis. Special terms and conditions or requirements for the Insurance Coverage may be stated in the Special Terms and Conditions.
Insurance Indemnity
shall mean the amount of money payable by the Insurer under the Contract upon occurrence of the Insurable Event, the specific amount of which shall be calculated and paid according to the General Insurance Terms and Conditions and the procedure and terms stated by the specific Special Terms and Conditions.
Insurance Period
shall mean a period of time defined and stated in the Contract by a specific term, during which the Insurance Coverage is valid. Special terms and conditions or requirements for the Insurance Period may be stated in the Special Terms and Conditions.
Insurance Policy
shall mean a document, confirming the Contract conclusion and its conditions and issued under procedure and terms stated by the Insurer during conclusion of the Contract and/or amendment of its conditions. Upon issuance of new or subsequent insurance policy, all prior insurance policies of the same Contract shall become invalid.
Insurance Premium
shall mean the amount of money payable by the Policyholder to the Insurer under the Contract, the amount and payment term of which are determined in the Insurance Policy. The Insurer shall be entitled to determine minimum Insurance Premiums.
Insured
shall mean a natural person, stated in the Contract, which Insured Risk shall be insured and to whom the Insurer shall pay the Insurance Indemnity in case of an Insurable Event occurring in such person’s life.
Insurer
shall mean Compensa Life Vienna Insurance Group SE, represented by Compensa Life Vienna Insurance Group SE Lithuanian Branch or its legal successor and/or acquirer of its rights and/or obligations (if applicable).
Investment Direction
shall mean an investment fund managed by a management company or securities portfolio formed and managed by the Insurer. The Investment Direction consists of the financial instruments specified in the strategy of the respective Investment Direction.
Investment Plan
shall mean the percentage allocation of the paid-in Insurance Premiums among the Investment Directions offered by the Insurer and chosen by the Policyholder which must be specified by the Policyholder in writing or through the E-life system.
Investment Structure of the Accumulated Amount
shall mean allocation of the Accumulated Amount into different Investment Directions valid at some particular moment.
Investment Unit
shall mean the conditional part of the Investment Direction's value whose price varies depending on the different prices of securities belonging to the particular Investment Direction.
Policyholder
shall mean a natural person or legal entity, which concludes a contract with the Insurer for his or other person’s benefit.
Sum Insured
shall mean the maximum amount of money stated in the Insurance Policy, with which the property interests are insured and which the Insurer undertakes to pay upon occurrence of the Insurable Event. Specific procedure of calculation and payment of the Sum Insured shall be determined in the Special Terms and Conditions.
Surrender Value
shall mean a portion of the Accumulated Value, payable in case of the Contract termination or partial withdrawal of money or in other cases stated in the Special Terms and Conditions or the applicable law. The Surrender Value shall be calculated according to the Contract conditions and the respective actuarial rules.