Let’s de-jargon insurance
If you're anything like our clients, you would agree the world of insurance is full of jargon and acronyms that leave you wondering what you're actually getting for your cover. So we thought it was a good idea to de-jargon the jargon.
We could probably go on for quite some time on this and the list of jargon could get pretty long, in fact, we tried to keep it to 10 but have ended up with 18 words you might hear and wonder about:
LIFE INSURANCE: Probably the most commonly recognised insurance term. Life insurance pays a lump sum of money if you pass away or become terminally ill.
TRAUMA INSURANCE: Also known as Critical Illness funds the costs associated with getting you better and back to work should you encounter a serious illness such as a stroke or heart attack.
TOTAL and PERMANENT DISABLEMENT COVER (TPD): Pays you a lump sum of money if you have an accident or illness that is so severe that you can never return to work.
INCOME PROTECTION (IP): If you suddenly find yourself unable to work, having income protection cover means you will get a regular benefit payment which can help you with your expenses while you’re not earning your usual income.
INSURED: The person or people covered by the insurance policy.
BENEFICIARY: The beneficiary is the person or entity entitled to receive the claim amount and other benefits upon the death of the benefactor or on the maturity of the 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.
INSURER: This is the insurance company that issues a policy to you to help protect against certain risks.
EXCLUSION: A part of a policy that excludes cover for certain events or conditions. This will be clearly stated. E.g a heart condition you had before taking out the policy
PRE EXISTING CONDITION: Pre-existing conditions are medical conditions that you have before your insurance policy starts. In some cases, the insurer may exclude them, and in others, they may include them.
COVER: The amount of protection the policy provides, usually a dollar amount.
CLAIM: A claim is a request you make for compensation from your insurer if you suffer a loss that is covered by your insurance policy.
BENEFIT: This is what you receive from your insurer when your claim is agreed and processed. It’s often called a settlement or payout.
POLICY WORDING: A document outlining the terms and conditions of insurance agreement for a specific insurance policy.
PREMIUMS: The regular payments made to an insurer in order to keep the policy going.
RENEWAL: The insurer and policy owner agrees to continue insurance from one risk period to the next.
DUTY OF DISCLOSURE: When you apply for an insurance policy or renew or extend your existing policy, you have to tell the insurer everything about you and your situation that is relevant or could reasonably be expected to be relevant to the insurer’s decision to insure you.
LOADING: An additional premium amount added to your policy to cover a condition that would normally not be covered under the insurers’ policy terms.