Insurance Abbreviations

The term safe comes from the Latin secūrus and admits different uses and meanings. It is what is certain and indubitable, or which does not present or constitute any risk or danger. The word “safe” is used synonymously with security or certainty.

In this sense, for example, one can speak of safe sex, that is, sexual relations where the health of those involved is not put at risk (when using condoms to avoid sexually transmitted diseases, etc.).

On the other hand , insurance is a contract whereby a person pays a premium to receive compensation in the event of an accident or theft, for example. There is also life insurance, where the insurer pays a certain amount to the family of the deceased.

In insurance contracts, there are reciprocal obligations and rights for the insurer and the insured. The policyholder’s intention is to obtain economic protection for his or her property or persons who may suffer damage, while the insurer’s business is to collect the premium.

The insurance contract implies the existence of an insurable interest (a lawful relationship is established between an economic value and a good; it is possible to insure material goods, such as a house or a car, and intangible ones, such as an economic loss or loss of profit ), an insurable risk (the possible, uncertain and future event that could harm the insurable interest), a premium (the cost of insurance) and the insurer’s obligation to indemnify (when collecting the premium, the insurer is obliged to assume the risk and to pay compensation in the event of an accident).

Life insurance

Life insurance seeks to guarantee the protection of the people the insured is responsible for. In the event of his death, his beneficiaries or heirs are entitled to compensation.

This compensation is called insured capital and can be paid in a single payment or in the form of financial income . As a general rule, the beneficiaries are the insured’s family members, although they may also be his partners or creditors.

Life insurance can be classified according to its duration (temporary or for life/life), its type of premium (flat premium, where the payment is constant, and the risk premium , which increases according to the age of the insured) or the number of policyholders covered by the policy (individual, group or multi-head insurance).

Insurers claim that, thanks to the system’s combination of foresight and solidarity, the insured obtains immediate coverage for substantial amounts, even when individual contributions are reduced.

In some countries, such as the United States, life insurance is not only a source of income replacement, it also allows the payment of the mortgage balance or other debts at the time of the insured person’s death; pay inheritance taxes; pay funeral expenses; provide funds for the education of descendants; and even make charitable donations.
On the other hand , there are policies that can be benefited by the insured in life, for example by complementing retirement (when someone who pays their life insurance for many years and reaches old age without having to worry about the economic well-being of their family ).

List of Acronyms Related to Insurance