Definition
Endorsement
An endorsement is a written modification to an insurance policy that adds, removes or alters its terms after issuance.
Endorsements record mid-term changes such as adding a family member to a health floater, changing the nominee, correcting personal details, increasing the sum insured, or noting a bank's assignment. Each endorsement becomes part of the policy contract.
Some endorsements (like adding cover) may carry an additional premium, while others (like a name-spelling correction) are free. Keeping endorsements documented ensures the policy stays accurate and that there is no dispute about agreed changes at claim time.
Related terms
- Assignment of PolicyAssignment is the legal transfer of the rights, title and interest in a life insurance policy from the policyholder to another person or entity.
- NominationNomination is the act of naming a person to receive the policy proceeds on the policyholder's death, without transferring ownership of the policy.
- Add-On CoverAn add-on (or rider) cover is an optional enhancement bought with a base policy to widen protection for an extra premium.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.