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Glossary

Death Benefit

Pays out if you die or meet the definition of a terminal illness

Death or early critical illness benefit

Pays out if you die, meet the definition of a terminal illness or suffer a critical illness or disability listed on the plan that meets the definition

Critical Illness Benefit

Pays out if you suffer a critical illness or disability listed on the plan that meets the definition and survive for 14 days

Disability Income Benefit – Also known as income protection

Replaces some of your earnings if you can’t work or do a number of work or life tasks because of sickness, accident or disability, either temporarily or permanently

Health Cash Benefit (Term personal plans only)

Pays out if you have to go to hospital or covers the cost for a number of treatments

Unemployment benefit – also known as waiver of premium

Takes care of your premiums if you lose your job or if you are unable to work or do a number of work or life tasks because of sickness, accident or disability, either temporarily or permanently

Level benefit

The amount insured or selected level of benefit would remain the same throughout the term of the contract

Increasing Benefit

The amount insured or selected level of benefit will increase on an annual basis in order to keep up with any rise in the cost of living or inflation. We use the increase in the Retail Price Index as a measure and the benefit will increase by this each anniversary or by a maximum of 10%, whichever is lower

Decreasing Benefit

The amount of cover you require will reduce over the years. This option will allow the cover to reduce annually in line with your mortgage or loan

Fixed Term

Provides over until the end of the selected term. It does not have any investment element and so when it finishes it will have no value.

Renewable Term

Provides Cover for the term you select (either 5 or 10 years) and is suitable if you do not need a long term commitment in your financial planning. Your policy may be renewed at the end of the selected period without any further medical or financial assessment, but the premiums or definitions on the new plan may differ from the original plan. There is no investment element with this version either. Each benefit you choose will have its own premium. The premiums can be calculated using guaranteed or reviewable rates.

Guaranteed rates

This is available for all benefits except Unemployment benefits or Health cash benefits. This means that the premiums for each benefit are fixed for the whole term of the benefit and will not change unless you request an amendment.

Reviewable Rates

This is available for all benefits. The premiums are reviewed at regular intervals.

Whilst fixed or guaranteed premiums sometimes work out to be slightly more expensive than reviewable premiums initially, they do allow you to budget and plan into the future.

Your plan has no cash in value during or at the end of each benefit term. If you stop paying premiums, you won’t get anything back, your plan will stop and you will no longer be covered for your benefits.

Lump Sum Payment

This pays out the amount insured in one payment

Regular Income

This allows the benefits to be paid as a regular income rather than a lump sum. It can be on a level or increasing basis

Instalments

This is spreading the payment of the amount insured over 3-5 years in equal payments