Insurance Jargon Buster

We know that sometimes information can be difficult to grasp if technical jargon is used. The following list of key terms has been put together to help you to better understand insurance.

Claim

A claim is submitted by the insured in accordance with an insurance policy following an occurance of one or more instances covered within the policy.

Contents

Contents refers to household goods, valuables and personal belongings within the home, which are your property or which you are legally responsible for.

Decreasing Term Assurance

Mortgage Decreasing Term Assurance pays out a lump sum on your death if you die during the policy term. This type of policy is usually taken out to help protect a repayment mortgage. The level of cover reduces over the term of the policy, roughly in line with the way a repayment mortgage decreases.

Endorsements

Endorsements change the terms or conditions of your policy, or may give you different cover. Any endorsements which apply to your policy will be shown in your schedule,

Excess

An excess is the amount payable by you at the first part of every claim, and will be shown on your schedule and/or policy.

Exclusions

Exclusions refers to situations or items of property not covered by the insurance policy. They will be set out in full in the policy

Level Term Assurance

Level Term Assurance may also be referred to as life insurance, life cover or term assurance. It pays out a lump sum on your death if you die during the policy term. At the start of the policy you set the level of the lump sum based on your needs.

Liability

Liability refers to a person being financially or legally responsible for something

Policy

An insurance policy is a contract between the policy holder and the insurer. The policy outlines the circumstances under which the insured is covered or not covered.

Premium

A premium is the amount of money charged for insurance coverage, and can be paid on either a monthly or annual basis, depending on the insurer.

Waiver of Premium

Waiver of Premium can be added to your life insurance policy at an additional cost. It pays your premiums when you are too ill to undertake your normal occupation for 26 weeks or more due to incapacity caused by illness or injury.

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