Death in Service Benefit - A policy taken out by an employer to pay a benefit to the estate of an employee if they were to die during their employment. The payout is usually calculated as a multiple of the persons salary.
Decreasing Term .
A term insurance policy in which the sum insured payable reduces steadily every year, decreasing to nothing at the end of the term. This type of policy is usually taken out to cover a debt.
Deductible - The specified amount a loss must exceed before a claim is payable. Amounts above the deductible up to the policy limit are payable. Deductibles are usually called a policy excess. A typical excess on a motor insurance policy would be �50.00. on a building insurance policy it could be �50.00 for the majority of perils, rising to �1000.00 for subsidence.
Deferred Annuity.
This is an annuity which starts after a specified number of years or at a specified age (usually on retirement), usually continuing through the policyholder's life time.
Defined Benefit Scheme
A pension scheme where benefits are usually a fixed proportion of final salary and calculated using number of years in 'pension able service'. This type of policy is also known as a Final Salary Scheme.
Direct - Direct Insurance is sold without the intervention of an Insurance Intermediary such as a broker. A large proportion of insurance is sold on a direct basis nowadays, claiming to offer cheaper premiums by cutting out the middleman
Disability Benefit - Certain life insurance policies will pay out if the policyholder becomes permanently disabled.
Employers� Liability - Employers Liability is a compulsory type of insurance designed to protect employees. All employers are obliged to take out this form of insurance and the definition of an employee is very wide.
Endorsement - An Insurance policy endorsement alters the scope of cover under an insurance policy. It is usually used to restrict cover but can also be used to increase cover if required. Always study policy endorsements most carefully.
Endowment Policy - A life insurance policy which will pay a sum of money after an agreed period of time. This type of policy used to be a popular method of repaying a mortgage. The policy will also pay out if death occurs before the end of the agreed policy term.
Ex Gratia Payment -Ex- Gratia payments are some times made by insurance companies following a loss when the event was not covered by the policy or perhaps some of the terms and conditions were not complied with. This type of payment is made solely at the insurers discretion.
Excess - The first portion of an insurance loss that the policyholder has to pay out of his own pocket. Frequently in the case of motor claims, excess payments can be recovered from the Third Party if it can be proved that they were at fault for an incident.
Excess of Loss Policy - This type of policy normally relates to Liability covers where a higher indemnity limit is required. If your Public Liability Insurance has a maximum indemnity limit of �5,000,000 and you require a higher limit but your existing insurer cannot provide it, it is usually possible to by the extra layer from another insurance provider.
Exclusion - All Insurance polices have exclusions and these will be listed in the policy document. Most policies will have a standard set of exclusions and you may find that because of your individual circumstances, extra exclusions are applied to your own policy.
Extended Warranty - An Insurance policy that allows the manufacturer�s warranty on a product to be extended for an additional period of time.
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