We bring you the second edition of our easy-to-use insurance handbook to help you navigate through any insurance policy.
Understanding just exactly what your insurance provider is saying in a contract can sometimes be a bit of a headache. With so many terms and clauses thrown at you on a daily basis, applying for insurance can seem like a chore with it’s ‘dread purchase’ status.But once you understand both the meaning of certain insurance terms and the reason for their implementation, getting exactly what you want out of your insurance can be easy.
Here Are 20 Insurance Definitions To Make Your Insurance Search Easier
Excess - The amount you are responsible for paying when the cost of loss or damage is more than the amount your policy covers.
Excess Premium - An extra amount you pay each month that allows you to pay no excess or a lower excess.
Extended Car Warranty - An insurance product that covers you against the costs of unforeseen mechanical breakdown with your car.
FAIS - Financial Advisory and Intermediary Services (FAIS). An independent body that resolve disputes between financial services providers and their clients in a fair, informal, economical and efficient way.
Financial Advisor - A representative of an authorised FSP, who is authorised to provide advice and/or intermediary services and has been appointed in such capacity by the investor.
Financial Planning - Savings and investment plans that insure your long term financial security.
FSP - Financial Servive Provider such as a bank, authorised by the Financial Services Board to provide financial services to clients in the form of advice and/or intermediary services.
Fixed Asset - An asset that can't be moved, such as a building.
Fixed Monthly Premium - A fixed amount set by your insurer that you pay monthly for insurance cover.
Funeral Insurance-Insurance that covers you against the costs associated with your own funeral, or the funeral of a family member.
Future Benefit Values - The value of a benefit in a set period in the future, i.e. a year from now.
Hospital Cash-Back Plan - A payment plan that is designed to pay a daily amount for each day you are in hospital to cover certain unexpected costs during your stay.
Hospital Insurance- This insurance covers your costs, or a percentage of it, should you be admitted to hospital. This depends entirely on benefits included in your policy.
Household Contents Insurance - Insurance that covers your household goods against loss, damage or theft.
Insurance Broker - A third party agent that finds insurance quotes and insurance policies on behalf of others.
Investment Risk - The risk that you may not get back as much as you expected from your investment policy, or that you lose capital.
Lapse -The ending of a policy because certain conditions have not been met. For example, if premiums have not been paid.
Legal Insurance- Insurance that covers the cost of any civil, labour or criminal cases in which you are involved.
Liabilities - The amounts of money or other responsibilities that a person or organisation owes.
Liable -What you are responsible financially or otherwise.