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Special conditions

The life office may have felt obliged to apply special condition to the life policy either because of the risk involved or some special area of cover. For instance if cover was excluded for motor cycle racing.

These special conditions will normally be added by endorsement.

Benefits

This deals with the payment of benefits and what the benefit is.  Describes exactly what benefit is payable and when and how the amount is calculated. Large sums of money can be involved and there must be no ambiguity.

Relatively straight forward for a straight term insurance where the sum insured is only payable on death. However IPI policies are more complicated where the definition of disability is vital and for critical illness policies where there needs to be a list of illnesses.

Additional benefits

If any additional benefits are provided then these will be endorsed on to the policy. Examples could include,

Endorsements

These are conditions added to the basic printed document. They help to change the policy to meet underwriting requirements. These endorsements allow the life office to maintain a standard document wording and to manage changes in that document by way of endorsement.

Policy ownership

The policy will show who the owner of the policy is. That may be the life insured themselves or the policy could be on ‘the life of another’.   Once the policy has been issued the ownership can be changed in a number of ways, such as,

Policy record

The life office has to create its own record of the policy contract. This originally would have been done by keeping a register of policies issued or a card record system, nowadays it is done on computer.

The following details are likely to form part of the record system, The record system will also have to record changes in the insurance contract.
These could include, next - Premium Collection