Life insurance glossary
Plain-language definitions of life insurance terms used in Zambia, from sum assured and surrender value to PIA and IFRS 17.
- Annuity
- An annuity is a life insurance product that pays a regular income, usually for life or for a fixed period, in exchange for a lump sum or series of premiums.
- Beneficiary
- A beneficiary is the person or entity named in a life insurance policy to receive the benefit when the insured event, usually death, occurs.
- Claims ratio
- The claims ratio is the proportion of premium income an insurer pays out in claims over a period, usually expressed as a percentage.
- Endowment policy
- An endowment policy is a life insurance product that combines protection with savings, paying a lump sum either on death or at the end of a fixed term.
- IFRS 17
- IFRS 17 Insurance Contracts is the international accounting standard for how insurers measure and report insurance contracts in their financial statements.
- Insurance premium
- An insurance premium is the amount a policyholder pays to an insurer, usually monthly or annually, to keep a life insurance policy in force.
- Mobile Money
- Mobile Money is a phone-based payment service that lets users store, send and receive money from a mobile wallet linked to their SIM card.
- Paid-up value
- Paid-up value is the reduced sum assured a life policy continues to provide when the policyholder stops paying premiums but keeps the policy in force.
- PIA (Pensions and Insurance Authority)
- The Pensions and Insurance Authority (PIA) is the Zambian regulator that licenses and supervises insurers, intermediaries and pension schemes.
- Policy administration
- Policy administration is the management of a life insurance policy through its whole life, from issue to endorsement, renewal, claim, surrender or maturity.
- Policy endorsement
- A policy endorsement is a formal amendment to an existing insurance policy that changes its terms, cover, parties or details without replacing it.
- Policy lapse
- A policy lapse is the termination of a life insurance policy's cover because premiums have not been paid within the grace period allowed.
- Policyholder
- A policyholder is the person or organisation that owns a life insurance policy, pays the premiums and has the right to change or cancel it.
- Premium collection
- Premium collection is the process of billing policyholders, receiving their premium payments and matching each payment to the correct policy.
- Reinsurance
- Reinsurance is insurance bought by an insurer from another insurer, called a reinsurer, to share part of the risk on the policies it has written.
- Sum assured
- The sum assured is the guaranteed amount a life insurer agrees to pay when the insured event happens, such as death or the maturity of the policy.
- Surrender value
- Surrender value is the amount an insurer pays a policyholder who cancels a life policy with a savings element before it matures or a claim is made.
- Underwriting
- Underwriting is the process an insurer uses to assess the risk of a life insurance application and decide whether to accept it and at what premium.
See Ontech LifeI ERP for your company
Book a demo with Ontech Solutions in Lusaka and see policy administration, claims, Mobile Money collection and PIA reporting working together in one platform.