Life insurance & Mortgage Protection Glossary

You will encounter plenty of jargon and technical terms when looking for a MortgageProtection. Get ahead with A to Z glossary to Life InsuranceandMortgageProtection. Click on the letter below to search for the word you're looking for.

Illness Insurance
Illness Insurance, also known as Critical Illness Insurance is a policy that pays out a lump sum on the diagnosis of critical illnesses indicated in the terms of the plan.

Income Protection Cover
Income Protection Cover is a type of Insurance which protects the individual, if unable to work due to long-term sickness accident and injury, with a tax-free monthly income

Income Protection Insurance
also known as Permanent Health Insurance or Income Insurance, Income Protection Insurance is designed to pay a proportion of salary in the event of the policyholder being unable to work due to an insured event (after an agreed waiting period has expired) until the policyholder returns to work or reaches their previously agreed retirement age.

Increasing Benefit
Increasing benefit is a form of protection against inflation. If you include increasing benefit option on quotation, the benefits on the plan would increase each year in line with inflation or an agreed factor to give this protection.

Increasing Term Assurance (ITA)
The cover increases every year without the need for a medical. Not as popular as Level Term, but it should be as people may require additional cover in line with increases in their income and inflation.

Increasing Term insurance
Increasing Term insurance is an Insurance that increases every year (no medical required). Useful because individuals may require additional Insurance in line with increases in inflation, income or personal circumstance.

Indemnity Insurance
Most domestic Insurance policies are now written on a "new for old" basis, where no deduction is taken for wear and tear. Indemnity is the approach of putting the individual back into the position they were immediately before the incident occurred, and so deductions would be made for wear and tear and general depreciation. This clause may be invoked in a household Insurance policy if the Property is underinsured.

Index Linking
Index linking is a process linking household policies to inflation for automatic annual adjustments.

Insurance Bond
A unit-linked product that can invest in, for example, equities, Property, fixed interest securities and cash. When you invest, your money is used to purchase 'units' in an Insurance Bond. Many Endowment Insurance policies, Whole Life Insurance Policies and investment bonds are invested in Life Funds as this type of Insurance combines protection with saving. Your policy returns are directly linked to the value of the fund's underlying investments, which means there is generally no guarantee to the value of your policy when it matures. Some Life Funds can be With Profits.

Insurance Claims
If events occur for which there are cover under a valid Insurance policy, then Insurance claims can be made.

Insurance Cover
Insurance Cover is a term used to describe the policies that an individual may hold and the events that can be claimed for and a payment made - e.g. flooding, storm, fire, etc

Insurance Death
Life Insurance policies.

Insurance Fraud
Insurance contracts are based on the principle of "Utmost Good Faith" - the person applying for Insurance knows everything, the underwriter knows nothing. Deliberately withholding information or making a false claim would both constitute Insurance fraud, and could result in the policy being cancelled without refund and even criminal prosecution.

Insurance Guarantee Premium
Most commonly seen in relation to Mortgages, this is an amount paid to purchase an Insurance that will pay out should the Property be taken into possession and the amount outstanding on the Mortgage is greater than the value of the Property.

Insurance Online
Insurance Online is a method of searching for Insurance Quotes or other information via the internet.

Insurance Policy
The Insurance policy details the cover that is being provided in return for the premium charged.

Insurance Premiums
Insurance Premiums is the amounts that are charged (either as a regular payment or a one-off amount) to provide the Insurance Cover, also known as Premium Insurance.

Insurance Quote
Insurance Quote is a quotation for Insurance policy given by Insurance Company, Insurance Group or Insurance Brokers.

Insurance Quotes
Insurance Quotes also known as Insurance Quote are quotations for Insurance policy given by Insurance Companies or Broker Insurance.