{"id":4594,"date":"2023-07-18T06:04:47","date_gmt":"2023-07-18T06:04:47","guid":{"rendered":"https:\/\/www.fisdom.com\/glossary\/valued-policy\/"},"modified":"2023-07-18T06:04:47","modified_gmt":"2023-07-18T06:04:47","slug":"valued-policy","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/valued-policy\/","title":{"rendered":"Valued Policy"},"content":{"rendered":"<p>A valued policy is an insurance policy where the insurer agrees to pay a predetermined sum of money to the insured or on their behalf in the event of a specified loss.<\/p>\n<h2>Understanding valued policy<\/h2>\n<p>Fixed payout &#8211; The amount of money specified in a valued policy is predetermined and not related to the extent of the loss suffered.<\/p>\n<p>Loss occurrence &#8211; The payout under a valued policy is triggered by the occurrence of a specific event or loss, such as the insured&#8217;s death in the case of life insurance.<\/p>\n<p>Independent of loss value &#8211; Unlike other insurance policies, the compensation in a valued policy is not based on the actual value of the loss. It remains constant regardless of the financial impact of the loss.<\/p>\n<p>Life insurance example &#8211; Valued policies are often associated with life insurance, where a predetermined sum is paid to the beneficiaries upon the insured person&#8217;s death.<\/p>\n<p>Certainty and peace of mind &#8211; Valued policies provide reassurance to the insured by offering a guaranteed payout, ensuring financial support regardless of the circumstances surrounding the loss.<\/p>\n<p>Focus on predetermined sum &#8211; Valued policies prioritize the specified amount, providing a straightforward and predictable outcome, rather than assessing the actual financial implications of the loss.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>A valued policy is an insurance policy where the insurer agrees to pay a predetermined sum of money to the insured or on their behalf in the event of a specified loss. Understanding valued policy Fixed payout &#8211; The amount of money specified in a valued policy is predetermined and not related to the extent [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-4594","post","type-post","status-publish","format-standard","hentry","category-taxes"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4594"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4594\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}