LIFE ASSURANCE -  Accidental Death and Dismemberment Benefit A provision added to a life assurance policy that covers the financial needs of the insured, and his family, in the event of accidental death or if the insured severs a limb above the wrist or ankle joint or loses his or her eyesight.

Agent Sales representative of a life assurance company.

Beneficiary The individual who will receive the proceeds of a life assurance policy. The primary beneficiary is the person who will be first entitled to the proceeds. Secondary beneficiaries get the proceeds if the primary beneficiary is dead and tertiary beneficiaries are entitled to proceeds if there are no primary or secondary beneficiaries alive when the insured dies.

Cash Surrender Value The cash amount available when a life assurance policy is voluntary terminated by death or maturity before it becomes due.

Cash Value The money value accumulated in a life assurance policy.

Commission A percentage of the policy paid to an agent by the life assurance company.

Contingent Beneficiary One or more people who will receive the proceeds when the policy matures and the original beneficiary is not alive.

Disability When an individual is unable to perform all, or part, of their job because of an accident or illness. A disability benefit is a provision that is usually added to a life assurance policy.

Double indemnity A provision in a life assurance policy that allows for the payment of a sum twice the amount of the original benefit if the insured dies in an accident.

Endowment policy A life assurance and savings policy that pays out an amount at the end of a specified term or when the person insured dies.

Exclusions Specified risks listed in a policy for which benefits will not be paid.

Grace Period A specified period of time (usually about a month) after a premium is due during which the policy remains in force.

Group Insurance Life and disability policies arranged by employers for their workers and dependents. The insured employees are covered by a single policy taken out by the employer. Life assurance groups determine how many claims they expect from the group and on a collective premium.

Independent Financial Adviser (IFA) A personal finance adviser who should be committed to offer the best advice for a client on investments and financial products. Legislation is being drawn up to ensure these advisers become legally accountable for the advice they give.

Insurer The party that provides insurance coverage.

Lapsed Life Assurance Policy When a policyholder stops paying premiums before a policy has taken on a value, the policy lapses and no money will be refunded. A policy acquires a value once all the costs of issuing the policy have been met. This can take up to two years of paying premiums, depending on the terms of the policy.

Level Premium Insurance A policy with unchanging premiums for the entire duration of the policy. In the first years of the policy the premium amount is higher than needed for the coverage required, but in the later years the sum reduces.

Life assurance A life assurance policy pays out money to the family of a policyholder after his or her death.

Lump sum A single cash payment to the policyholder.

Medical A doctor's report on the medical condition of a potential policyholder.

Mortality The average life expectancy of a given gender, population or age group.

Paid-up Insurance A life assurance policy with all the premiums paid up.

Premium Recurrent monthly payments into an insurance policy.

Proceeds Net amount of money payable by the life assurance group when an insured person dies or the policy matures.

Reinstatement Securing the continuation of a lapsed policy by paying up all unpaid premiums and producing satisfactory evidence of insurability.

Renewable Term Insurance Renewable term insurance provides the right to renew the policy at the end of the term for another term or terms. The rates increase every time there is a renewal as the insured ages.

Rider Any clause added to a policy. A rider includes the expansion of a policy's conditions or the exclusion of a condition. A rider is also called an endorsement.

Self-insurance An individual strategy to provide for the risk of future losses by compiling funds through investments, as opposed to purchasing life assurance policies and other insurance protection.

Single Premium Life Cover A life assurance policy with an initial premium, which, together with interest earnings, is sufficient to pay the cost of the whole policy.

Term Length of time covered by a policy.

Term Insurance A type of policy that only offers coverage for a limited term (usually 10, 15 or 20 years). If the insured does not die in this time, the policy ends and no payment is made. A term insurance policy is usually cheaper than other types of life assurance policies.

Underwriter A company that receives premiums from policyholders and is responsible for the implementation of a policy contract.

Universal Life A life assurance policy with flexible premiums. Policyholders may change the death benefits from time to time and alter the premium payments.

Variable Life Assurance A life assurance policy with no fixed benefits. The amount paid out depends on the value of the policy's assets at the time the benefit is due.

Waiver of Premium A provision that exempts the insured from paying premiums over a specific period in case of disability after an accident or because of an illness.

Whole Life Insurance Not limited to a specific time frame and will pay out whenever the insured dies.