Filter the glossary

A

• Acute conditionA condition that starts suddenly and is expected to respond to treatment and resolve.

B

• Benefit periodThe maximum length of time an income protection policy pays per claim.

C

• Cancer claim authorisationThe insurer’s written approval for a defined cancer service, provider and claim stage.
• Cancer coverThe policy benefits and conditions used to assess eligible private cancer care.
• Children’s critical illness coverAutomatic cover for the policyholder’s children, usually included on adult policies at a capped amount.
• Chronic conditionA long-term condition needing ongoing management rather than a course of treatment that ends.
• Combined life and critical illness coverOne policy covering death and defined serious illness, usually paying out once on the first event.
• Continued personal medical exclusionsSwitching insurer while carrying your existing exclusions across, rather than being underwritten afresh.
• Critical illness coverInsurance that pays a tax-free lump sum if you are diagnosed with a condition meeting the policy definition.
• Cross-option agreementAn agreement giving surviving owners an option to buy and a departing owner’s estate an option to sell.

D

• Death in serviceA lump sum paid to an employee’s family if they die while employed, funded by the employer.
• Decreasing term insuranceTerm cover whose pay-out falls over time, usually tracking a repayment mortgage.
• Deferred periodThe waiting time between stopping work and the first income protection payment.

E

• ExcessThe amount you pay towards a claim before the insurer pays anything.

F

• Financial Conduct AuthorityThe UK regulator responsible for the conduct of insurers and insurance brokers.
• Financial Ombudsman ServiceThe free, independent service that settles complaints between consumers and financial firms.
• Financial Services Compensation SchemeThe statutory safety net that can pay out if an authorised firm fails.
• Free cover limitThe level of group scheme benefit an insurer will cover without individual medical underwriting.
• Full medical underwritingUnderwriting where you declare your medical history and the insurer decides cover up front.

G

• GP reportA medical report an insurer requests from your doctor to support an application or a claim.
• Guaranteed acceptance (over-50s plan)Life cover for over-50s with no medical questions, capped pay-outs and a qualifying period.
• Guided optionA lower premium in return for the insurer choosing your consultant or hospital from its network.

H

• Hospital listThe set of hospitals your policy will pay for you to be treated at.

I

• Incapacity definitionThe policy clause that sets the test of being unable to work that a claim must pass.
• Inpatient treatmentTreatment where you are admitted to a hospital bed and stay at least one night.
• Insurance brokerA regulated firm that arranges cover for you, usually paid commission by the insurer.
• Insurance product information documentA short standardised summary of what a policy covers and excludes.

K

• Key personAn individual whose death or serious illness would measurably damage a company’s profits.

L

• LoadingAn increase to a premium applied because the insurer assesses the risk as higher than standard.

M

• Moratorium underwritingUnderwriting that automatically excludes recent medical history for a set period, usually five years.

N

• NHS patient choiceThe right to choose which provider delivers your first outpatient appointment at referral.
• No-claims discountA reduction in premium that reflects how little you have claimed.

O

• Outpatient coverCover for consultations, tests and scans where you are not admitted to hospital.
• Own occupationThe strongest incapacity definition: the policy pays if you cannot do your specific job.

P

• Partial payment (additional-condition payment)A smaller pay-out for a less severe condition that does not end the main cover.
• Policy definition (critical illness)The exact medical wording a diagnosis must meet before a critical illness claim is paid.
• Policy wordingThe full contract document that decides what is and is not covered.
• Policy written in trustA legal arrangement where pay-out money is held by trustees for named beneficiaries.
• PostponementAn insurer declining to assess an application yet, and inviting it again after a set period.
• Pre-authorisationGetting the insurer’s agreement to treatment before it happens.
• Pre-existing conditionA condition you had, or had symptoms or treatment for, before your policy started.
• PremiumWhat you pay the insurer, monthly or annually, to keep the policy in force.

R

• ReferralA GP’s letter naming a specialist, which most policies require before they will pay.
• Referral to treatment (RTT)The NHS measure of the time from a referral to the start of consultant-led treatment.
• Relevant life planA single-life death-in-service policy a company arranges on one employee or director, held in trust.

S

• Self-payPaying for private treatment directly, without using insurance.
• ShortfallThe part of a private medical bill your policy does not pay, leaving you to settle it.
• Sum assuredThe fixed amount a life insurance policy agrees to pay out on a valid claim.
• Survival periodThe short period after diagnosis you must survive before a critical illness claim is paid.

T

• Term assuranceLife insurance that pays out only if you die within a fixed period (the term).

W

• Waiting periodA set time at the start of a policy before certain benefits can be claimed.
• Waiver of premiumA feature that stops your premiums while a claim is being paid, so cover continues free.
• Whole of life insuranceLife insurance with no end date, which pays out whenever you die.