A Glossary of Protection Terms

The encashment or surrender value of a plan, the amount of which depends on the terms and conditions of the plan, tax treatment and investment performance. Pure protection plans do not have an investment element and therefore have no cash-in value.

A claim is a notification to the insurer that an insured event has occurred. We have a specialist Claims Team which will help you through the claims process.

A critical illness is a medical condition of disease seriously sufficient to affect quality of life. Examples include malignant cancer or heart attack.

This is what is assessed for claims when there is a potential case of total permanent disability. Actions considered in determining loss of ability to do daily activities include washing, getting dressed and undressed, feeding yourself, maintaining personal hygiene, getting between rooms and getting in and out of bed.

For more information, please read the Terms and Conditions for the Personal Insurance Options and/or Mortgage Protection Options.

This is an option of cover with Mortgage Protection. Depending on how you are repaying your mortgage you can choose to have your cover on a decreasing term basis.

If you choose decreasing term, the amount of cover will reduce in the same manner as a repayment mortgage, cover reducing by small amounts at first and by greater amounts towards the end of the insurance term. Decreasing Term has lower premiums than Level Term.

This means the period during which an insured person must be ill or disabled before a provider will pay any benefit.

Excluded causes are those situations under which a claim would not be paid such as death caused by alcohol or drug abuse.

For more information, please read the Terms and Conditions for the Personal Insurance Options and/or Mortgage Protection Options.

This is where the Planholder pays for their insurance cover at a fixed rate over a certain length of time as agreed in their Protection Plan.

This means a person’s inability (either physically or mentally) to be able to look after themselves and their affairs.

This is the agreed time period a Planholder is covered by their Insurance Plan.

An insurance plan that provides cover to yourself and your spouse or partner. A protection plan usually pays on the first of the couple to suffer an insured event. If death the remaining spouse or partner is paid the full amount.

This is the period over which the terms of the Protection Plan have been agreed to cover.

A Level Term insurance pays out a level sum on death within a fixed period of time. This is the death benefit option offered under our Personal Insurance and an option under the Mortgage Protection. Depending on how you are repaying your mortgage, you can choose to have your cover on a level term basis.

If you choose level cover, the amount of your benefit will remain the same throughout the term of your Plan. You should normally consider this option if you have an interest only mortgage.

A Protection Plan designed to cover the outstanding amount of a mortgage or other loan on a level term or decreasing term basis.

Our Mortgage Protection Options can be opened on a single or joint life basis and has level and decreasing terms. Options we have include Life Benefit, Critical Illness and Combined Life and Critical Illness Benefit.

A Protection Plan designed to cover you, your family and/or your income.

Our Personal Insurance Options include Life Benefit, Critical Illness, Income Protection and Combined Life and Critical Illness Benefit.

A premature death is classed as a death that occurs below the average age for life expectancy.

This is the amount of money a Planholder pays for their insurance Plan they have in place to keep them covered.

This is the amount specified to pay in the event of a claim at the start of the plan during the period of the insurance. The sum assured remains constant for a Level Term plan and decreases over time for a Decreasing Term plan.

Although associated with general insurances such as motor or home, for Protection insurances this has the same meaning as sum assured.

A diagnosis of a disease or illness which will lead to someone’s death within a short period of time.

For more information, please read the Terms and Conditions for the Personal Insurance Options and/or Mortgage Protection Options.

This means loss of physical ability through an illness or injury.

For more information, please read the Terms and Conditions for the Personal Insurance Options and/or Mortgage Protection Options.

Underwriting is the assessment of risk carried out for the cover being applied for.

A Waiver of Premiums pays your premiums if you are unable to work due to incapacity, so you can continue to cover yourself whilst you recover.

If you are not in a high risk occupation, you can choose to have Waiver of Premium cover when you apply for your Plan. We will then pay your premiums after six months of incapacity and continue to pay them until the first of these events: you recovering and are no longer being incapacitated, your 65th birthday, your cover ends or your death.