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Confused about over 50s life insurance? Use our jargon buster

Posted in: Finance Last updated: 04 Jul 2014

When you’re searching for a life insurance policy, you’re likely to come across a lot of technical words that may leave you feeling rather baffled. We know life insurance isn’t the easiest product to understand, so we’ve simplified some of the terms (specifically for whole of life insurance) to help you find the answers you need.

Accidental Death Benefit

This is the amount the insurer will pay if you die as a result of an accident within a certain time frame – this will be stated in the policy’s terms and conditions.

Arrears

If someone does not make a payment on time, this is known as being in “arrears”.

Assurance

This basically means that the insurance policy is payable on an event, which is certain to happen but the timing is unknown.

Beneficiaries

These are the people who are eligible to get the money when the policyholder dies and the sum assured has been paid out.

Guaranteed

This means that as long as premiums for the insurance policy are paid, a payout will be certain.

Moratorium

This is the waiting period before the insurance provider will pay out. So for example, if the policy has a two year moratorium period, this means the insurance provider will not pay out any money if the policyholder dies within the first two years of the policy.

Over 50s life insurance

Over 50s life insurance is a term used for whole of life insurance plans which generally meet the needs of over 50s. Whole of life insurance products pay out whenever the person covered dies. This means that as long as the premiums are paid, a payout will be certain.

Policyholder

This is the name for the person who takes out the insurance policy.

Policy documents

These are the documents sent to the policyholder once their policy has started. This will include the policy terms & conditions along with the details of the cover and premium rates.

Premium

This is the amount of money the policyholder will have to pay in order to receive the insurance cover.

Sum Assured

This is the lump sum benefit that the insurance policy will pay out if the person covered dies.

Surrender Value

This is the amount payable for cancelling the policy, should the policyholder decide to cancel before the end of the policy term.

Note: Whilst we take care to ensure Hub content is accurate at the time of publication, individual circumstances can differ so please don’t rely on it when making financial decisions. OneFamily do not provide advice so it may be worth speaking to an independent financial adviser about your own circumstances.