Insurance Jargon » explained in a more everyday language.

Helping you understand the ``Jargon`` so you can be best informed.Knowledge is power.

INTRODUCTION

Insurance Jargon or just new words that you don’t hear in everyday language.

We understand that there are a lot of words mentioned on the website & in general when discussing the many different types of insurance policies & saving products which are available to us all nowadays. This section is to help you understand many of those words you weren’t quite sure of what they meant. We hope that we have covered them all but as always if there is some word that your not sure of exactly what it means, please feel free to contact us & we will be happy to explain in a more everyday language. Contact us today by email or by phone.

LIFE INSURANCE

Assigning Your Policy.

A bank or mortgage lender will often require you to sign over your policy to them for the life of the mortgage. This will involve you presenting the lender with your policy document and signing a Notice of Assignment which the bank will give to you. They will also send a copy to the insurer to note on their files.

Trust

A trust is a way of ensuring your life insurance policy sum assured goes to the people you want it to when you die. If the policy isn’t owned under trust it automatically becomes part of your estate.

Term Assurance

This is an insurance policy with a set term and does not decrease over the life of the policy. The sum assured stays level and it can be used for personal cover, interest-only mortgages and the more common decreasing mortgage. If this type of policy is selected for mortgage cover any balance will be paid to your estate. This type of policy is slightly more expensive than a decreasing life policy.

Sum Assured

This is also known as the policy benefit/cover and is the amount of money you could receive if you have a successful insurance claim.
With a life insurance or serious illness policy, you choose the sum assured.

Proposal Form

This is the application form that the life company will require you to complete to apply for the cover.

Single Life Policy

This type of insurance policy covers one person.

Standard Terms

When a company approves your policy and advises there is no change to the original premium quoted a case is accepted at standard terms which can also be known as ordinary rates.

PMA

This is a medical report sent by the life company to your doctor; you don’t need to attend the doctor as it is completed from your file and sent straight back to the life company.

Nurse Medical

The life company may ask a nurse to call you at a time and place that is convenient to do a quick medical. This is very standard and usually takes about 20 minutes to complete.

Non-Medical Limits

Depending on your age and the cover you are applying for the life company may not request any medical information if your proposal form has no medical issues noted on it.

Loading On A Premium

This may happen if a life company feels the client applying for cover has a medical history which creates a higher risk for them in taking on the cover.

Joint Life Policy

This type of policy covers two people. A joint cover will pay benefits on the first death of either insured person.

Health Questionnaire

From time to time an insurer will require more detail on a medical condition you currently have or have had in the past. This questionnaire will ask a number of questions around the condition, so the insurer can confirm any risk involved with giving cover.

Dual Life Policy

This type of insurance policy covers two people, though independently. It is effectively like having two single policies where cover will pay benefits on the death of both insured.

Decreasing Policy

The sum assured on this policy decreases each year for the life of the policy

INCOME PROTECTION

Income Protection

Protecting your income so you can continue to pay the everyday bills that continue to come in even when you are not able to work. So we have compiled a number of words ” jargon” below & explained them to help you understand them better.

Deferred Period

The waiting period is also called, the deferred period or the excess period.
Before your income protection policy starts to pay out, you have to be unable to work for a certain period of time known as the deferred period.

Benefit

The amount of money paid to a policyholder once a claim has been successful.

Exclusion

As part of your policy, there is a clause within your income protection policy which excludes a specific medical condition or particular activities or pastimes which result in causing you to be unable to work.

Occupation

Your job or profession

Income

The amount of money you get when you are performing your everyday work/occupation.

Income Protection – Age related policy.

A policy that your age has a bearing on the cost of the policy.

Medical Conditions

An illness/sickness or disease that a person may suffer from.

Occupation Class

The insurer will decide what class your occupation should be in which is based on the risk of injury when doing your job.
(desk job – low risk/construction worker – high risk.)

Income Protection Policy

A contract detailing the specific circumstances in which the insurer will pay the insured.

Income Protection Plan

An insurance policy which pays the insured person the agreed amount as per their policy details when they are unable to carry out their work/job/ occupation due to injury or sickness.

Income Protection Premium

The agreed amount of money paid in each month as per the insured person income protection policy.

Crital Illness Cover

We hope you will never have a critical illness during your lifetime but the odds against that happening are not great especially as we get older. We have compiled the meaning of a number of words you might have heard or recently come across on our site regarding Critical Illness cover or also known as Serious Illness Cover. Many of the other words that you may not see included below can be found in the Life Insurance Section on this page.

Critical Illness Cover / Serious Illness Cover

Insurance which can provide cover for 70 serious illnesses including the three most common: cancer, heart attack and stroke.

NEXT STEP

We are here every step of the way.

Having read all the “jargon” that your brain is able for & still feel you would like to sit down with a professional financial adviser to go through things, please feel free to contact us to arrange a date & time that suits. We are happy to assist you with making an application & happy to talk you through the process in more detail so you know you are making the correct decision that suits your own personal circumstances.
Contact Us today & we will take it from there.