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Policy: |
The printed document that states the terms and conditions of the insurance contract. |
| Premium: | The money a policyholder pays to the insurance company to activate an insurance policy and keep it in force. |
| Benefits: | The amount of money that the insurance company pays to the policyholder or to his/her beneficiary. |
| Beneficiary: | The person who receives the insurance money when an insured event occurs. |
| Claim: | A request for payment for a loss that is covered by the policy. |
| Exclusions: | Specific conditions or circumstances listed in the policy that are not covered and for which the policy will not pay any benefits |
| Eligibility: | The criteria that determine who can purchase an insurance policy (e.g. age limits on who can buy an insurance policy; often one must at least 18years old). |
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Deductible: |
The amount of money that a policyholder agrees to pay, per claim or per accident, toward the total amount of an insured loss. Insurers use this mechanism to share risk with policyholders and reduce false claims. |
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Waiting Period: |
The time a policyholder must wait before his or her coverage becomes effective. For example, life insurance policies typically have a delay between the time when policyholders begin paying premiums and when the coverage is active, reducing the risk that someone who is about to die will purchase a policy. |
(Gregg Sneddon , Health24, March 2011)
For more definitions, see the excellent jargon-buster page provided by the Association for Savings and Investments in SA (Asisa)
