A to Z
30 protection insurance terms
D
Decreasing term insurance Decreasing term insurance pays a lump sum that reduces over time, usually broadly in line with a repayment mortgage balance. Deferred period (waiting period) The deferred period is the waiting time between becoming unable to work and an income protection policy starting to pay out.
F
FCA (Financial Conduct Authority) The FCA is the UK regulator that authorises and supervises firms which advise on or arrange insurance and other financial products. Full medical underwriting Full medical underwriting means you answer detailed health questions up front so the insurer confirms exactly what is covered from the start.
G
GP report (GPR) A GP report is medical information an insurer requests from your doctor, with your consent, to help assess a specific part of your health history. Guaranteed premiums Guaranteed premiums stay fixed for the whole length of the policy, so the insurer cannot increase the price as you get older.
I
Incapacity Incapacity is the test an income protection policy uses to decide whether your illness or injury prevents you from working and qualifies for a claim. Income protection Income protection pays a regular, usually tax-free income if illness or injury stops you working, until you recover, retire, or the policy ends. Indexation Indexation is an option that increases your cover, and usually your premium, each year to help protect its value against inflation.
M
Medical underwriting Medical underwriting is the part of the application where an insurer assesses your health and medical history to decide terms for cover. Moratorium underwriting Moratorium underwriting sets up cover without detailed health questions up front, but excludes recent pre-existing conditions for a set period.
P
Policy in trust Putting a policy in trust places it in a legal arrangement so any payout can go directly to chosen beneficiaries rather than into your estate. Postponement Postponement is when an insurer delays its decision on an application, often until you have been stable or symptom-free for a period. Premium A premium is the regular payment, usually monthly, that you make to an insurer to keep a protection policy in force. Premium loading A premium loading is an increase to the standard premium that an insurer applies to reflect a higher assessed level of risk.
T
Tele-interview A tele-interview is a telephone interview in which a trained interviewer works through an insurer's medical questions with you. Term life insurance Term life insurance pays out only if you die within a fixed number of years chosen at the start of the policy. Terminal illness benefit Terminal illness benefit allows a life insurance policy to pay out early if you are diagnosed as terminally ill within the policy term.
W
Waiver of premium Waiver of premium is an option that keeps your cover going by paying your premiums for you if illness or injury stops you working. Whole of life insurance Whole of life insurance is designed to pay out whenever you die rather than only during a fixed term, provided premiums are maintained.
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GoInsureMe is a trading style of Pure Protection Ltd, authorised and regulated by the Financial Conduct Authority. These definitions are general information, not personal advice.