Glossaries: Insurance

Accident, sickness and unemployment insurance
See 'mortgage protection insurance' and 'payment protection insurance'.

Cover
The protection given by insurance.

Critical illness cover
Insurance that pays you a lump sum if you are diagnosed with a specified critical illness covered by your policy.

Excess
The amount you agree to pay before your insurer pays the rest of the bill (for example, the first £100 of a claim).

Exclusions
Things that your insurance will not cover.

Income protection (or permanent health insurance)
Insurance that pays you a monthly income if you are unable to work due to illness or injury.

Cover lasts until you are able to return to work or until you retire, whichever happens sooner.

Investment-backed life insurance
Life insurance which has two roles: to protect you, and to act as an investment.

Joint life
Typically used as life cover to protect a family in the event of either or both parents dying.

Mortgage protection insurance
Accident, sickness and unemployment insurance (or payment protection insurance) used to cover your mortgage payments.

Payment protection insurance (or accident, sickness and unemployment cover)
Pays out a regular amount for a limited time - a year, say - if you can't work for health reasons or redundancy.

Policies are typically used to covers repayments of a loan, although some cover bills as well.

Policy
The details of what your insurance covers, what it doesn't and what it costs.

Premium
The amount your insurer requires you to pay for insurance.

Private medical insurance
Insurance that pays for you to receive private medical treatment.

Schedule
The specific details of what is covered and what is excluded by a policy.

Term insurance (or term assurance)
Life insurance giving protection for a specific amount of time (the 'term').

For independent financial advice, please call Burgess & Lee on 01202 312288 or email us


	Burgess & Lee Ltd, 4 Stratfield Saye, 20-22 Wellington Road, Bournemouth. BH8 8JN Tel: 01202 312288