Life Insurance terms in the uk. Page 2

Policy

The printed document issued to the policy holder by the company stating the terms of the

Policy Year

A one-year period starting on the day and the month the policy was issued. The first policy year starts on the date of issue, and ends on the day before the policy's first anniversary date.

Premium

The payment a policy holder is required to make to an insurance company to purchase insurance coverage and to keep the policy in force.

Rated Policy

A policy issued with an additional premium to cover the extra risk involved if an insured has impaired health, a hazardous occupation or hobby.

Reinstatement

The restoring of a lapsed or surrendered policy to full force and effect.

Renewable Increasable Convertible Term Insurance

This contract combines the options of increasing the sum assured, converting the policy and renewing the contract.

Reviewable Term

Level term assurance with an option to renew the contract at the end of the term, without the need for further medical evidence.

Rider

A provision added to a policy that provides additional benefits.

Settlement Option

The manner in which the insured or beneficiary may choose ( secured loans ) to have the policy proceeds paid.

Suicide Clause

A policy provision which reduces or eliminates the amount to be paid if the insured dies from suicide.

Surrender

To voluntarily terminate or cancel a policy for its cash value.

Term Life Insurance

This type of policy runs for a specified time period.

Underwriting

The process of evaluating applicants for insurance and classifying them fairly, so the appropriate premium rate may be charged

Waiver of Premium

A provision added to a policy that will waive the premium ( personal loans ) payments required by an insured during the total disability of the insured.