Explaining life insurance terms in plain English
| Accident |
An event causing injury to an insured person and was not intended by them to happen |
| Actuary |
Someone with professional training in mathematical and technical aspects of insurance, especially calculating premiums |
| Broker / Adviser |
Someone who specialises in insurance. They may have arrangements with more than one insurer so they can place their client's business where it best suits the client |
| Claim |
A request for payment according to the policy terms made by the policy owner to the insurer |
| Cover |
The amount of protection an insurance policy provides |
| Exclusion |
A provision in a policy that excludes cover for certain events or conditions. E.g. dangerous pastimes or pre-existing conditions for life insurance |
| Insured |
Someone covered by an insurance policy |
| Memorandum of transfer |
The document that records a change of ownership on a policy |
| Nominated / joint 2nd owner |
A person who you've chosen to receive benefits payable from your policy |
| Policy document / policy wording |
A document outlining terms and conditions of insurance agreement for a specific insurance policy |
| Policy Summary |
Document detailing your policy benefits |
| Policy Schedule |
The document that states the benefits of your policy |
| Policy owner |
The person who owns the policy; this can be the person who is insured, or someone else. The policy owner is able to request changes to their policy |
| Premiums |
The regular payments made to an insurer in order to keep the policy going |
| Renewal |
The insurer and policy owner agree to continue insurance from one risk period to the next |
| Sum insured/cover level/benefit |
The amount the insurer agrees to pay out under the policy's terms |
| Term |
The period of time your policy is intended to run: until your death, for a specified number of years, or until a specified age |
| Underwriter |
Someone who assess the risk of providing insurance to the person applying. |