LIC Assistant key terms

The amount a policyholder pays, usually yearly, half-yearly, quarterly or monthly, to keep an insurance policy in force. It funds the risk cover and, in many LIC plans, also builds savings.

The basic amount stated in the policy schedule that the insurer guarantees to pay on maturity or on the insured's death, before bonuses and any extra rider benefits are added.

The number of years for which the insurance contract remains active, counted from the date of commencement to the maturity date. It determines premium levels and when benefits become payable.

A window, typically 15 to 30 days from receipt of the policy document, during which the policyholder may cancel a new policy and receive a refund of premium less charges.

The extra time allowed after a premium due date, usually 15 days for monthly and 30 days for other modes, within which the premium can still be paid without losing cover.

The state of a policy that stops being in force because premiums were not paid even within the grace period. Benefits may be reduced or lost unless the policy is revived.

Restoring a lapsed policy by paying overdue premiums with interest and, where required, giving a fresh declaration of health that the insurer accepts.

The amount a policyholder receives if a policy with surrender value is terminated voluntarily before maturity. It is usually available only after premiums for a specified minimum number of years have been paid.

A reduced sum assured granted when premium payment stops after a minimum period. The policy stays in force for the original term but pays a proportionally smaller benefit at maturity or death.

A share of surplus that a participating life insurer declares periodically and adds to the sum assured, increasing the amount payable on maturity or death.

A life insurance policy that shares in the insurer's surplus through bonuses or dividends, in contrast to non-participating plans where benefits are fixed at the outset.

The total amount paid to the policyholder when a policy runs its full term, generally the sum assured plus accrued bonuses and any guaranteed additions under the plan.

A life insurance plan that pays the sum assured plus bonuses either on the insured's death during the term or on survival to maturity, combining protection with savings.

Pure protection insurance that pays the sum assured only if the insured dies within the policy term. It has no maturity payout, so premiums are comparatively low.

A plan that pays a percentage of the sum assured at fixed intervals during the term and the balance with bonuses at maturity, while keeping risk cover for the full term.

A contract in which the insurer pays a regular income, monthly, quarterly, half-yearly or yearly, in return for a lump sum or instalments, often for the annuitant's lifetime.

An annuity where the income payments start only after a chosen waiting period, allowing the fund to accumulate before the payout phase begins.

An optional add-on benefit attached to a base policy for an extra premium, such as accident cover or critical illness cover, which cannot normally be bought alone.

A rider that pays a lump sum, usually a fixed percentage of the sum assured, if the insured is diagnosed with a listed serious illness such as cancer or a heart attack.

A rider providing an additional sum on accidental death or permanent disability, often calculated as a multiple of the base sum assured and charged as a small extra premium.

The policyholder's right to name a person who will receive the policy money in the event of the holder's death, ensuring the claim is settled without a succession dispute.

The individual named in the policy to receive the death benefit. The nominee is only a receiver of the money and does not automatically become the owner of the policy.

Transfer of the rights and benefits of a life insurance policy to another person or entity, either absolutely or conditionally, by a written endorsement registered with the insurer.

A formal request by the policyholder, nominee or assignee for payment of policy benefits on maturity, survival, death or a rider event, supported by prescribed documents.

The official document issued by the civil registration authority recording the fact and date of a person's death, required as basic proof in a death claim.

The formal contract issued to the policyholder containing the schedule, plan details, terms and conditions, and endorsements, and serving as the primary record of the insurance agreement.

The identity and address verification process an insurer must complete before issuing a policy, using documents such as proof of identity and proof of address.

The formal complaint-handling process an insurer must provide, including a designated officer, acknowledgement timelines and escalation to the insurance ombudsman if the customer is dissatisfied.

A comparison of two quantities of the same kind expressed as a quotient. In aptitude problems, ratios are simplified like fractions and often converted into proportions to find unknown values.

A fraction expressed out of one hundred. Converting between fractions, decimals and percentages is a core skill for profit, loss, interest and data-interpretation questions.

Interest calculated only on the original principal for the whole period, using the formula principal multiplied by rate multiplied by time divided by one hundred.

Interest calculated on the principal plus previously earned interest, so the amount grows each period. The formula uses principal multiplied by one plus the rate raised to the number of periods.

The sum of a set of values divided by the number of values. Average questions frequently involve changes when a value is added or removed from a group.

A reasoning question presenting two or more statements treated as true, from which the candidate must decide which conclusions logically follow, often using Venn diagrams.

A puzzle where people or objects must be placed in a line or around a table according to given clues about relative positions, requiring a consistent final arrangement.

A reasoning topic in which family relationships are described through chains of relatives, and the candidate must identify how two named persons are related.

An English question type in which a passage has blanks and the candidate chooses the word or phrase that best fits each blank in grammar and meaning.

A word that has the same or nearly the same meaning as another word. Synonym questions test vocabulary depth and the ability to choose the closest meaning in context.

A word with a meaning opposite to another word. Antonym questions require identifying the option that most directly contrasts with the given word.