Glossary
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 endorsement explained
Life insurance policies often need to change after they are issued. A policyholder may want to increase the sum assured, change the premium frequency, correct a spelling in a name, update an address or replace a beneficiary. Each of these changes is recorded as an endorsement.
An endorsement forms part of the policy contract. Depending on the change, it may alter the premium, for example an increase in cover usually increases the premium from the endorsement date, or it may be purely administrative with no financial effect.
Why it matters in life insurance
Because life policies can run for decades, the number of endorsements on a policy can be large, and insurers need a clear history of what changed and when. Ontech LifeI ERP records each endorsement against the policy with its effective date, the user who processed it and any premium adjustment.