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 Accidental Death Benefit Provides a benefit in the case of accidental death in addition to base amount of coverage. Agent The insurance company (Canada Protection Plan) representative and adviser who sells insurance policies to consumers. Anniversary Year Any 1-year period from the anniversary of when a policy was issued. Annual Premium A yearly policy fee payable by a policyholder. Annuity A contract that provides income payments at regular intervals, usually for a specified period or for the lifetime of the annuitant. Annuity Period The time between each payment under an annuity, usually 1 month or 1 year. Applicant The individual or party applying for an insurance policy. Automatic Waiver of Premium A benefit that automatically covers the cost of premium payments, usually in case of death or injury. Beneficiary The person designated to receive proceeds of an insurance policy. Benefit A payment or option available under the terms of an insurance policy. Benefit Value The amount of money payable on a benefit. Cash Surrender Value A benefit that allows a policyholder to cancel the policy and receive an amount of money. Cash Value Money that accumulates under some insurance plans that can be borrowed, withdrawn, or used as loan collateral. Child Insurance Rider Optional additional life insurance coverage on the life of child or children. Claim A request for payment of benefits under the terms of an insurance policy. Coverage The extent of benefits provided by an insurance policy. Death Benefit The amount paid on death of an insured. Deductible A monetary amount deducted from a benefit paid to a policyholder. Disability The inability to work due to injury or sickness. Dividend Money made available to policyholders based on an insurance company's earnings and monetary surplus. Grace Period The period (usually 1 month) following the premium due date, during which an overdue premium for a life insurance policy may be paid without penalty. The policy remains in effect throughout the grace period. Group Insurance Insurance issued to a group of people under a master contract. It is usually issued to an employer for the benefit of employees. Individual Insurance Insurance available to individuals rather than groups. Insurance Act In Canada, a general statute that contains most of the insurance law of a common law province, and regulates the conduct of insurers and insurance agents within the province. Insured The person whose life or health is covered by a specific policy. Insurer The insurance company that comprehension promises to pay a benefit if a specified loss occurs. Interest Rate The rate charged or paid for the use of money proportional to the length of time the money was held. Issue When an insurance policy (contract) is approved and becomes effective. |
Issue Age The Age of an insured as at the policy issue date, using "age nearest" next birthday formula. Issue Date The date that an insurance policy is approved. Joint Policy Life One insurance policy that covers two lives. A Joint-First option pays a benefit when the first life ends. A Joint-Last option pays a benefit when the second life ends. Lapse The termination of a policy when needed premiums are not paid and the policy has no cash value. Life Insurance Insurance that provides protection against an economic loss caused by death of the person insured. Life Insured The person whose life is protected by an individual policy. Maturity The time when a policy or annuity reaches it's natural end. Non-participating Policy A type of insurance policy or annuity for which the policyholder does not receive dividends. Paid-Up Additions A type of insurance policy or annuity in which the owner receives dividends that typically increase the benefit amount. Participating Policy A policy offers the potential of sharing in the success of an insurance company through the receipt of dividends. Policy A written document that serves as evidence of insurance coverage and contains information about the benefits, coverage, and owner, as well as its associated directives and obligations. Policy Date The date that the insurance company assumes responsibilities for the benefits of a policy. Policy Loan With some insurance policies, if the policy has a cash value, the policyholder can borrow money from the policy. Policy Year Any 1-year period from the anniversary of when a policy was issued. Pre-Authorized Cheque (PAC) Approved withdrawals from a policyholder's bank account, usually monthly. Pre-existing Health Condition An injury, a sickness, or a condition that existed before the date that an insurance policy takes effect. Premium The annual cost of an insurance policy payable by the policyholder. Any policy fee amount is not included in the premium amount. Premium Mode The frequency of premium payments for an insurance policy, usually annually, semi-annually, or monthly. Reinstatement With most policies, the policyholder has the right to reinstate a lapsed policy within a specified period (usually 2 years) by providing satisfactory evidence of insurability and paying all outstanding premiums, plus interest. Renewal Agreement Some policies contain a provision that the insurance company agrees to renew the policy for an agreed number of times or to a specific age of the policyholder. Rider An optional coverage benefit added to an insurance policy. Surrender To cancel an insurance policy or optional benefits of that policy. Surrender Charge The expenses charged when a policyholder surrenders a policy for its cash value. Term The time period during that a policy is in force, or the time it takes for a policy to reach maturity. Underwriter A person that uses evidence to evaluate the insurance risks of applicants and policyholders. Waiting Period The time that must pass before a benefit becomes payable. Waiver of Premium A benefit that pays premiums on behalf of the insured. Whole Life Insurance that provides coverage until the end of the insured's life. |
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