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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