Glossary

Below you will find some of the most used terms describing your policy with us.

Friendly Society - A friendly society is a non-profit organisation that is ran entirely for the benefit of its members. (Policy Holders)

Income protection - An insurance policy that covers loss of earnings due to accident or sickness.

Deferment Period - the deferred period is the time between a valid claim and the commencement of benefit payments. This is chosen when you first commence your policy, and is usually based around your sick pay arrangements with your employer.

Premium - The amount you pay each month (or annually) for your insurance policy

Loadings - An increase made on your premium, which reflects the risk factor of a given condition that a policyholder may have

Exclusion - Exclusion gives a condition for which an insurance policy does not cover.

Qualifying Period - The time you must wait before you can claim after your policy commences.

Definition of Incapacity - the way by which an insurance company measures your ability to work

Escalation - this is when your annual benefit goes up in line with the retail price index

Retail Price Index - The Retail Prices Index (RPI) is the most familiar general-purpose domestic measure of inflation in the United Kingdom.

Inflation - is a rise in the general level of prices of goods and services over a period of time

Non-Disclosure - failure to inform of a condition at application stage that would have affected the terms of your contract. If an incident of non-disclosure occurs this usually ends up in a non-payment of a claim and the terms of a contract being altered.

Notification period - The time in which you have to inform us that you wish to make a claim. Varies depending on which deferment period you have applied to your policy

Hazardous Pursuits - Dangerous Hobbies

Occupational Class - classification of occupations according to the degree of risk inherent in that occupation.

Proportionate Benefit - to encourage the return to work of a policyholder recovering their health, many life offices offer to pay a reduced benefit if the policyholder takes a part time or lower-paid job after recovering their health.

Rehabilitation Benefit - a part payment paid if you return to the occupation which you were doing prior to your incapacity but on a part time or other reduced capacity basis

Terminal Illness Benefit - If you have been diagnosed with a terminal illness, which may cause death within 18 months of the initial diagnosis you can claim a lump sum payment  equivalent to 6 months benefit Payments

Medical Expenses Benefit - a lump sum payment to be used towards the cost of a specified medical operation or treatment that in the opinion of your doctor will lead to a faster recovery

Units - the way we measure how much benefit you have. E.g. on our classic plus plan you would have £1 worth of cover a week per unit