A professional who provides contracts of insurance to the policyholder for the insurer.
Insurers usually enforce a minimum and maximum age limit on their policies.
The process of getting insurance. This usually involves completing paperwork and answering questions regarding your occupation, lifestyle and medical history.
The person or organisation that will receive the financial payout in the instance of a successful claim.
A Rider Benefit with Critical Illness Policies designed to provide a level of Critical Illness Cover for the insured children. The Conditions covered usually are equivalent to the parent’s cover, through vary from provider to provider.
A application by the beneficiary of a insurance policy, for a payout under the terms of the insurance policy.
What your insurance policy will and won’t protect if you need to make a claim.
The cover amount is the amount your policy will pay out in the instance of a successful claim. The amount of cover should be based on your needs and circumstances along with affordability of the policy premium.
A Critical Illness policy pays the insured a lump sum in the event of being diagnosed with an Specified illness or condition. Critical illness policies do not cover every illness or condition so you should check your policy documents what is included upon application.
A qualifying period in which the policy holder must wait (usually in months) and continue to make monthly premium payments before they are eligible to make a claim.
A dependant is someone who relies on someone else for financial support.
An insurance policy which usually runs alongside a repayment mortgage. The insured life is covered for the same amount as the outstanding mortgage so as each premium is paid it reduces in line with the mortgage balance.
Benefits provided by the insured’s employer such as a pension scheme, death in service or private health care.
A variation of Life Insurance where on death, rather than paying a single lump sum, it pays a monthly income from the point of a successful claim until the end of the policy term.
A regulatory body who ensure good conduct from companies in the financial industry.
If needed, this is additional time agreed by the insurance company to pay the premium and avoid your coverage expiring. This amount of time will vary between insurers but can be found in the policy contract.
With guaranteed premium the monthly premium will remain the same throughout the policy term, even if there are changes to your Health and circumstances in the future.
Extreme sports or hobbies such as sky diving, mountain climbing and off-roading. If you take part in these regularly some companies will either exclude these from the policy, will charge high premiums to include them or just won’t cover you at all.
An Income Protection policy pays a monthly income to the insured in the event they’re unable to work due to illness or accidental injury and there is a loss of earnings.
In line with inflation, this policy is designed to increase the cover amount each year to ensure the value of the payout is relative to the rising cost of living.
A policy that covers two people and pays out when the first person dies.
A document which outline the main characteristics of a financial product, detailing the key features and limitations, cancelation rights, etc. For specific detail on how the recommended financial products meet the clients Needs and objectives please refer to the Demands & Needs Letter.
A document which provides you with key information on the recommended policy. Usually containing information such as, the sum insured, policy term, and monthly premium. These will often be produced as part of a quote so are subject to medical underwriting.
The degree of protection provided by an insurance company within the plan.
LTA (level term assurance) is a policy that provides a set sum (the amount of money the beneficiaries will receive) if they make a successful claim.
AKA ‘Term Life Insurance’. In exchange for a premium from the policy holder, an insurer will pay a sum of money to a beneficiary upon the death of an insured person during the period in which the premium is being paid/has been paid for.
The individual who the life insurance policy is based on.
A medical condition causing long lasting effects and preventing a person from working.
The benefit that a life insurance company pays out in one amount when the insured person passes away.
Where the policy holder fails to provide important information as part of their application which could affect the insurer’s decision to provide cover or how much to charge for it. Non-disclosure at application can result in claims being declined and the policy not paying out.
A life insurance policy specifically designed to cover those who are 50 or older and new policies can be taken out between 50 an 80. Unlike a regular life insurance policy, the term covers you until you die and doesn’t require you to answer any medical questions.
A sum of money received by the beneficiary when the life insured passes away during the policy period.
The agreed factors of your protection policy which are then documented in a contract between the policy holder and the insurance company.
The payment(s) paid to the insurance company in exchange for your insurance policy. The cost of the premium is always agreed in advance via the application.
An indication of the price of the premium that is provided by the insurer before you agree to enter the contract. This is calculated by taking elements like the type of insurance, amount of cover and length of policy into consideration.
The Terms and cost of Reviewable policies are generally reviewed every 5 years (depending on policy), at that point the provider will review the client medical situation and circumstances, this can result in increased premiums or reduced benefit.
An add-on or additional benefit to an insurance policy to increase or provide additional benefits not normally included under the policy. Sometimes automatically included some rider benefits are an additional cost.
A process for insurers to assess how likely you are to claim on the policy they’re providing. This is usually determined by factors such as age, health, occupation and lifestyle.
This is the structure in which the death benefit is paid out. It isn’t always provided as a lump sum, the policy holder can also arrange for it to be paid annually or in instalments.
The agreed amount the insurer will pay out in the event of a successful claim during the policy term.
The length of time a life insurance policy runs for.
A Rider benefit for Life Insurance policy which can allow a accelerated payment of the death benefit where the life assured has been diagnosed with a Terminal Illness and has a life expectancy of less than 12 months.
A Rider Benefit for Critical Illness Policies, where the policy can pay out in the event the insured is permanently incapacitated and unable to work.
A trained professional who decides whether to accept a life insurance application or not and if so, deciding factors such as the amount of cover the insured person can get and how much they should pay for it.
This is a process every applicant goes through to determine whether they’re insurable, at what amount and at what cost. It’s designed to provide the fairest price for a person’s risk profile.
Validation is the process carried out by the insurance company to verify that the claim submitted on your life insurance/critical illness/income protection policy is true and fits the terms and conditions agreed within the contract.
A Rider benefit designed to ensure that that the policy premiums are maintained by the provider, if the insured is unable to work owing to accident, illness or disability. There will be a deferral period where the insured will need to maintain the monthly premiums before a claim can be made.
An insurance policy that covers the policyholder for the whole of their lifetime and pays out upon death.
Formally known as a Will and Testament, this is a legal document detailing how you would like your property to be managed and distributed after your death.
