Beneficiary
A person who benefits from the proceeds of a life insurance policy.

Claim
Is made by the person who suffers from a critical or terminal illness or on behalf of the person who dies.

Cover
Another word for policy.

Exclusions
A stipulation that the policy will not cover for i.e. an activity, event or illness.

Life Insured
The person on whose life the policy is taken out.

Policy Holder
Is a person (or people) who has entered into a life insurance contract with a provider

Premium
The monthly/annual amount you pay to the provider for cover.

Rating / Loading
If the provider decides that you are higher risk, premiums may be increased to reflect this.

Reversionary Bonus
A bonus added to the sum assured (or basic sum assured) of a with-profits life insurance policy taken out of a provider's surplus profits, usually on an annual basis.

Sum Assured
The amount of cover you with the policy to provide in the event of a claim.

Term
The period of time you want the policy to provide protection.

Terminal Bonus
An additional bonus paid to reflect the overall performance of a with-profits life insurance policy at maturity or prior to the death of the life assured. See ‘reversionary bonus'.

Trust
An arrangement which allows one or more people (the trustess) to safeguard and administer the payout of a life insurance claim and pass it on to the beneficiaries.

Underwriting
The policy provider checks each application to decide if the risk of providing cover is in line with the premium the policyholder will pay.