Asymmetrica Glossary
Glossary
Plain-English definitions of the Indian personal-finance and life-insurance terms used across our calculators and guides. Each term has its own page with a longer explanation and worked example.
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- Paid-Up Value A reduced sum assured kept in force without further premiums, after you stop paying mid-term.
- Policy Loan A loan from the insurer using your policy's Surrender Value as collateral, typically at 9–10% interest.
- Policy Term The total duration the policy runs — from issuance until maturity or scheduled end.
- Premium The recurring amount you pay the insurer in exchange for the policy's cover and benefits.
- Premium-Paying Term (PPT) The number of years you actually pay premiums — may be shorter than the policy term in limited-pay plans.
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- Section 10(10D) Income-tax exemption for life insurance proceeds — death benefits always, maturity if the 10× SA rule is met.
- Section 80C An income-tax deduction of up to ₹1.5 lakh per year for specified investments and expenses, including life insurance premiums.
- Simple Reversionary Bonus An annual bonus declared on the Sum Assured of a participating policy — credited yearly, paid on death or maturity.
- Special Surrender Value (SSV) An insurer-set surrender amount that typically exceeds GSV after the early years and tracks the policy's actual reserve.
- Sum Assured The fixed amount the insurer guarantees to pay on death or maturity, before bonuses or additions.
- Surrender Value The amount the insurer pays you if you exit the policy early, before maturity.
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