| Cover note |
a cover note is issued by an insurance
company to give temporary evidence of an effectual insurance policy before the
policy and certificate have been prepared. |
| Critical illness insurance |
this type of insurance pays out if the
policyholder is diagnosed with a critical illness specified in his or her policy.
Critical illness insurance can often be included as an optional extra with mortgage
protection life insurance. Read more about critical illness cover here. |
| Decreasing term assurance |
this term refers to a type of insurance
in which the sum insured gradually reduces throughout the term of the policy until
it decreases to zero at the end of the term. Mortgage
protection life insurance is of this type. |
| Deferred period |
also referred to as the excess
or deferment period, this term refers to the amount
of time that you are required to wait from the time of claim until you are eligible
to receive payments. The longer it is, the lower your premiums will generally
be. |
| Exclusion period |
this is a period at the beginning of
your policy term in which you are not eligible to make a claim. |
| Guaranteed premiums |
this type of premiums are more expensive
at first, but are guaranteed not to change throughout your policy term. |
| Insured |
a policyholder, or person covered by
a particular insurance policy. |
| Insurer |
the company or firm providing the insurance
product. |
| Insurance premium tax |
this is a tax imposed by the government
on most UK insurance products. Life insurance products are usually exempt from
this tax. IPT will automatically be included in your premiums or any quotation
you might receive. |
| Intermediary |
an individual or firm that offers advice
and arranges policies for consumers. An intermediary may either be tied,
representing certain companies with which they do business, or independent,
free to provide products from any company on the market. |
| Loading |
this is a term used to refer to the
way in which insurance companies will charge certain clients higher premiums than
others. A smoker, for example, may be susceptible to loading as they represent
a higher risk. |
| Mortgage protection life insurance |
this is a type of life insurance which
will pay off the outstanding amount on your mortgage in the event of your death
or, in some cases, critical illness. To learn more about mortgage protection life
insurance click here. |
| Mortgage protection insurance |
this type of insurance will protect
your mortgage payments if you are unable to earn due to illness, accident, disability
or unemployment. To learn more about the basics of mortgage protection insurance
click here. |
| Policy |
the document detailing the contract
between the insurer and the insured, describing full specifications. |
| Policyholder |
the person or company to which an insurance
provider issues the policy. |
| Premium |
the amount payable by the policyholder
to cover the costs of insurance. |
| Proposal form |
an application form filled out by a
person wishing to be covered by insurance. |
| Proposer |
an individual or company who applies
to take out an insurance policy. |
| Reviewable premiums |
this type of premiums is usually initially
cheaper but is subject to price changes throughout the term of the policy. |
| Sum insured |
this figure represents the maximum amount
that an insurance company will pay out at any given time. It is relevant to mortgage
protection life insurance plans, where the sum insured reduces as the mortgage
is gradually paid off. |
