Insurance Glossary

Approved Person: A person considered by the FSA as fit and proper for performing a controlled function in any particular firm.

Benefit Amount: The amount that would be paid out by the policy tax free.

Claim: The seeking of payment or compensation by the policy holder under the policy contract.

Cover: The protection given to the policy holder by the insurance company.

Critical illness cover: A policy that would pay you a lump sum amount if you are diagnosed as critically ill.

Decreasing Term Insurance: Life insurance that covers only for a fixed period of time or age. The sum insured decreases every year and has no remaining value at the end of the term.

Dental Insurance: A health cash plan that specifically covers dental care expenses.

Dependants: People who are financially dependent on you like spouse (including de facto), children or any other person.

Excess: The amount that the policy holder agrees to pay before the insurance company pays the remaining bill.

Exclusions: Things or events that will not be covered under your insurance policy.

Health Cash Plans: An insurance plan that pays limited cash sums for everyday healthcare bills.

Income protection (permanent health insurance): An insurance policy that makes monthly payments if you are unable to work due to an injury, illness. The payment is made until you are able to work again or reach retirement.

Investment backed life insurance: An insurance policy that acts as a protection and investment. For e.g. Whole-of-life, with-profit, income and growth bonds, endowment and Maximum Investment plans.

Joint life: A life-cover policy that covers the family in the event of death of either parent or both.