Accident Death – A payment in case of death caused by an accident only.
Premium – The cost of the policy. You can choose to pay monthly, quarterly, half-yearly or yearly.
Automatic Indexation of Benefits – Depending on the policy definition, the benefit will increase accordingly with CPI or a nominated percentage
Beneficiary – The nominated person who will receive your benefit.
Benefit Period – The length of time you will receive disability, income, illness or mortgage benefits once the waiting period is up.
Cover – Another name for insurance in Australia, can also be used in place of the word coverage.
Critical Illness Insurance – Another name for trauma insurance.
Death Cover – Another name for term life insurance.
Disablement Insurance – Another name for TPD insurance.
Dreaded Disease Insurance – Another name for trauma insurance.
Offset Clauses – These clauses will allow your insurance provider to reduce the amount of payment due in cases other than death where you have some other source of monies coming in.
Non Cancellable Policy – This type of policy can’t be cancelled due to changes in your medical or financial situation
Premium – What your life insurance cover will cost you. Can be paid monthly, quarterly, half- yearly or yearly.
Renewal – Your policy automatically renews every year on the date it originally came into force. Premium and benefits changes may appear on renewal due to age increase and indexation of benefit.
Waiting Period – The amount of time you will have to wait upon becoming disabled or sick to start receiving benefits.