What is coverage option in SAP FS-PM - Policy Management?

SAP Term: coverage option

• Component: FS-PM

• Component Name: Policy Management

• Description: Object level below coverage. This object level is required in life insurance to differentiate between the different shares of the coverage, for the purposes of reporting and taxation. This term is used in the contract model; it corresponds with the elementary product calculation model in the product module.

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• Key Concepts: 
  Coverage option is a feature of the FS-PM Policy Management component of SAP. It allows users to define the scope of their insurance policies, such as the type of coverage, the amount of coverage, and the duration of coverage. Coverage options can be used to customize policies to meet specific customer needs. 
  
  How to use it: 
  To use coverage options, users must first define the policy parameters in the FS-PM Policy Management component. This includes defining the type of coverage, the amount of coverage, and the duration of coverage. Once these parameters are set, users can then create coverage options that are tailored to meet specific customer needs. 
  
  Tips & Tricks: 
  When creating coverage options, it is important to consider the customer’s needs and budget. It is also important to ensure that the coverage options are compliant with applicable laws and regulations. 
  
  Related Information: 
  For more information on using coverage options in FS-PM Policy Management, please refer to SAP’s documentation on the topic. Additionally, there are a number of online resources available that provide tips and tricks for using this feature.