Glossary of Terms

Cancer – Any malignant growth or tumour, characterised by abnormal and uncontrolled cell division, which may spread locally or to distant parts of the body.

Children - The child of the policyholder or spouse in a policy. For upper age limit please refer to individual providers.

Day-patient – A patient who is admitted to hospital of a day-patient unit because they need a period of clinically supervised recovery but does not have to stay overnight.

Diagnostic Tests – Investigations such as x-rays, or blood tests to find or to help find the cause of your conditions.

Excess – The amount you pay on your policy towards the cost of your treatment before the insurer can pay out.

In-patient – Treatment which, for medical reasons means the Member has to stay in hospital overnight or longer.

Moratorium – Moratorium is one method of underwriting used by insurers to determine what will and won’t be covered, in terms of your pre-existing medical conditions. It means that any conditions that existed in a specific period of time before your policy begins, will automatically be excluded for a set period of time. The time frames and rules may differ from insurer to insurer. Using this method of underwriting means your medical history may only be necessary when you need to make a claim, which can help save time and effort when you apply.

Out-patient – A patient who attends hospital, consulting room or out-patient clinic is not admitted as a day-patient or an in-patient.

Specialist – A medical practitioner with particular training in an area of medicine with full registration under the medical acts.

Underwriting – This is the process used when you apply for a policy, to enable the insurer to determine important aspects of your cover. Different insurers often use different methods of underwriting and you may be asked questions relating to your medical history as part of this process. Underwriting means the insurer can confirm what will and won’t be covered in terms of your pre-existing conditions and can also impact on the cost of your cover.

Life Insurance – Life Insurance pays out a lump sum on your death, or when diagnosed with a terminal illness within the term of your policy.

Critical Illness – Critical Illness pays out a lump sum on diagnosis of a specified critical illness, death or contraction of a terminal illness during the term of your policy.

Level Term Assurance – The sum that will potentially be paid out, will remain the same throughout the term of your policy.

Decreasing Term Assurance – The sum that will potentially be paid out, will decrease over the term of the policy in line with your mortgage debt. So, as you pay off what you owe, the amount which the insurer would pay out if you die also decreases.

Term – How long the policy will run for, specified by the client.

Trusts – If you put a policy into trust it means you can specify who benefits from the money on your death; can speed up the payout (as you do not need the money to form part of your estate and go through probate), and avoids Inheritance Tax if over the limit.