Jargon Buster
ABI : Association of British Insurers – represents the Ukinsurance industry and protects on consumer interest. Outlines basic definition guidelines for critical illness insurance.
Beneficiary : This title is given to the person who will receive the payout if the person whose life is insured dies during the term of the policy.
BMI (Body Mass Index) : An applicants BMI is a calculation that can be used to measure a peron’s weight. A persons BMI can be used to work out whether the person is in good health. To calculae your BMI: Divide the weight by the height squared.
Cover : The protection provided by your insurance policy.
Critical Illness Cover : Critical illness cover pays out a lump sum if you’re diagnosed with one of the specified critical illnesses, during the specified term.
Decreasing Term Insurance : This page out a lump sum on death and is normally taken out with a repayment mortgage as it reduces in line with the debt over the policy term.
Guaranteed Premiums : The premiums you pay remain the same throughout the whole policy.
Key features document (KFD) : This document containsimportant information about your insurance policy. Including the conditions covered and their definitions.
Level Term Insurance : The sum assured remains the same throughout the whole policy.
Policy Documents : This document will iclude details about your premiums other details of your cover.
Premium : The amount you will pay either monthly or annually in return for your protection.
Retail Price Index : A measure of how much the cost of living has increased or decreased over a term.
Reviewable critical illness premiums : Where the premiums are reviewed throughout the policy, normally every 5 years, after a review your premiums may be subject to change.
Severity : Payments made on severity pay out between 10-100% of the sum assured depending on the stage of the illness.
Term : The number of or period of time te policy will run for.
Terminal illness cover : This is provided at no extra cost with the majority of insurance policies and pays out of the policy holder has less than 12 months to live. The cover won’t apply during the last 18 months of the policy. Customers should note that this is not the same as critical illness cover.
Waiver of premium : Can be added on at an extra cost, if you become unable to pay your premiums due to illness than the provider will pay them for you.
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