Protection Glossary
Welcome to the YOUR MOVE protection insurance glossary. Here you will find definitions of the terms that are used on this website and what they all mean.
Beneficiary
The individual(s) designated to receive the benefits from a policy.
Critical Illness Cover
Pays out a lump sum if you are diagnosed with a specified critical illness.
Typical illnesses include:
- Alzheimer’s Disease (before age 60)
- Benign Brain Tumour
- Blindness
- Cancer
- Coma
- HIV - caught in the UK from a blood transfusion, physical assault or at work
- Heart Attack
- Kidney Failure
- Loss of sight
- Major Organ Transplant
- Motor Neurone Disease
- Multiple Sclerosis
- Parkinson’s Disease
- Stroke
- Third Degree Burns
- Total Permanent Disability
Death in service
Life insurance an employer provides that may be linked to a pension scheme. As cover ceases should you change jobs this is not normally suitable for mortgage protection.
Decreasing term assurance
This provides a lump sum in the event of death during the policy term. The amount of cover (sum assured) decreases over the term of the plan. This type of cover is usually used as the basis of a Mortgage Life Insurance plan to protect the declining balance of loan.
More about Mortgage Life InsuranceDeferred period
A period of time that has to pass before benefit from a policy is claimed. Typically Income Protection policies will have a choice of deferred periods to suit any benefit you may be eligible for from your employer.
Income protection
Provides tax-free income in the event of you not being able to work due to ill health. Payments are usually paid monthly until you either return to work, the policy term expires, you retire or death occurs.
More about Protecting Your IncomeLevel term assurance
A policy that pays a fixed lump sum upon death during the policy term.
More about Level Term AssuranceMortgage life insurance
A decreasing term life insurance plan that’s designed to help protect a repayment mortgage by paying a lump sum in the event of death during the policy term. These are usually flexible plans with options available to pay insurance premiums and mortgage payments in the event of you becoming incapacitated by illness or injury.
More about Mortgage Life InsurancePremium protection
Covers the cost of policy premiums during periods of unemployment due to illness or injury. Also known as waiver of premium.
Premium
Payments to the insurance company to purchase cover.
Guaranteed premium
Premiums will stay the same throughout the term of a policy.
Reviewable premium
Premiums are very likely to change over the term of the policy, an insurer may choose to review premiums at set intervals such as every five years.
Sum assured
The amount of money you are insured for from outset of a policy.
Terminal illness benefit
The sum assured from a life assurance plan becomes payable if you are diagnosed with a terminal illness where life expectancy is considered to be less than 12 months.
Trust
By placing the benefits of a policy “in trust” you can ensure that the correct person receives the proceeds. Assets owned in a trust do not form part of an estate of a deceased person.
Underwriter
A person who assesses and classifies the degree of risk that a proposed insurance represents.
Waiver of premium
Covers the cost of policy premiums during periods of unemployment due to illness or injury. Also known as Premium Protection
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