Glossary Of Insurance Terms
Annual insurance policy
An annual insurance policy will provide cover for a period of twelve months. In the case of car insurance, if you intend to continue driving, your annual policy will need to be renewed on or by the end date of the current policy to ensure continuous cover.
Annual travel insurance
Also known as multi-trip insurance, this covers you for all your holidays for twelve months from the policy commencement date.
Benefits
This is the amount that an insurance provider may pay you under the terms of your policy after a claim is successfully filed and investigated.
Chronic condition
Any disease, illness, or injury that has one or more of the following characteristics:
- it requires ongoing or long-term monitoring through consultations, examinations, check-ups, and / or tests
- it needs ongoing or long-term control or relief of symptoms
- it requires rehabilitation or specialist training to cope with it
- it continues indefinitely
- it has no known cure
- it comes back or is likely to come back.
Claim
A claim is a formal application to your insurance company for payment for an incident under the terms of your policy.
Excess
The excess of the amount you have to pay if you make a claim. For example, if your travel insurance policy has £75 excess on medical expenses, you will have to pay the first £75 of your medical bills, before the insurer pays the rest. Aspects of any insurance policy may include an excess, so find out (a) if there is one and (b) how much it is.
Exclusion
An event or circumstance, set out in the policy’s terms and conditions, in which the insurance provider does not have to pay a claim.
Policy
Your policy is the legal document stating the rights and obligations of you and your insurer and the terms and conditions of your insurance.
Policyholder
The person who is has taken out the insurance policy.
Premium
This is the amount you pay for insurance, whether in one lump sum or in installments. Insurance companies often prefer individuals to pay their premium in one payment, but in a very competitive marketplace, monthly premiums are becoming more popular.
Pre-existing medical condition
Any disease, illness or injury for which a policyholder received care, treatment or medical advice for before taking out insurance cover.
Single-trip travel insurance Travel insurance that covers one holiday, limited to the dates of travel.