What Is an Insurance Cycle?

The term of insurance is also called "insurance period", the term of protection provided by the insurance policy. That is, the time from the beginning of insurance liability to its termination. Different insurance contracts have different durations. The insurance period is not only the period of responsibility for the parties to perform rights and obligations, but also an important basis for the insurer to calculate insurance premiums. There are generally three calculation methods for insurance duration: Calculated by time. The insurance period of fire insurance and life insurance is calculated by time, that is, the insurance liability starts from 00:00 on the day agreed by the two parties and ends at 24:00 at the end of the agreement; calculated by voyage. The insurance period of the transportation insurance is calculated according to the transportation voyage, that is, from the time the cargo is delivered to the destination; calculated according to the project. The construction period of construction engineering insurance and installation engineering insurance is calculated according to the engineering period, that is, from the beginning to the completion of the project. ^[1]

Term Insurance

The term of insurance is also called "

There are usually two calculation methods for the duration of an insurance contract:

1. Calculate by year and month. If the property insurance is generally one year, you can renew the contract after the expiration. Life insurance has a longer term, including 5 years, 10 years, 20 years, 30 years, and so on.

2. Take the beginning and end of an event as the insurance period. For example, cargo insurance and transportation insurance may take one voyage as the insurance period, while construction and installation works may take the construction date to the scheduled acceptance date as the insurance period.