GLOSSARY OF TERMS
|
| Life Cover |
You protect those who rely on you against
your death. |
| Critical Illness Cover |
You can be covered if you are diagnosed with
a critical illness like certain heart conditions or cancers. |
| Permanent Health Insurance |
You can protect against losing your income
through disability, sickness or accident, |
| Sum Assured |
The amount that will be paid out in the event
of a claim being accepted. |
| Level basis |
Fixed premiums (and sum assured) for a fixed
period of years and a full payout on a claim at any point. Usually suitable
for family protection and 'interest only' mortgages. |
| Increasing Basis |
Cover goes up every year along with the premiums.
This helps keep the cover in line with inflation. |
| Decreasing Basis |
A cheap option in which the payout reduces
over the length of the cover period. This occurs in line with a repayment
mortgage. |
| Renewable Basis |
This is a short-term policy. This makes it
cheaper initially, but more expensive long term. Importantly, it can
be renewed without medical evidence. |
| Waiver Of Premium |
If you were disabled or ill and unable to
work for longer than (generally) six months, then the insurance policy
is free. In other words, the insurance company will pay the premiums
for you until you are able to return to work.
After a waiting or deferment period (usually 3 or 6 months) if you are
still absent from work through sickness or disability, the insurer would
consider paying the premium until you return to work or plan maturity. |
