Insurance glossary

Terminology can be confusing. That's why we've created this handy insurance glossary which explains common insurance terms in plain English.

Term Meaning
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 second 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 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
Policy summary Document detailing your policy benefits
Policy schedule The document that states the benefits of your 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 assesses the risk of providing insurance to the person applying

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