Income Protection Glossary

All the common terms concerned with Income Protection

• Any occupation
• Benefit
• Claim
• Cover
• Deferment period
• Group Income Protection
• Hazardous pursuits
• Incapacity
• Income Protection
• Indexation
• Insurer
• Life assured
• Occupation class
• Own Occupation
• Permanent Health Insurance
• Policyholder
• Premium
• Provider
• Sum assured
• Term
• Underwriting
• Waiting period

Any occupation

A policy set up on this basis will pay out if incapacity prevents the policyholder from carrying out any occupation which would be considered reasonable given their education and training. Top of Page.

Benefit

The amount that will be paid out by a policy. Also called cover or sum assured. Top of Page.

Claim

A request for payment of the benefit when incapacity prevents an individual from working. Top of Page.

Cover

See benefit. Top of Page.

Deferment period

The time between the start of incapacity and commencement of payment of the benefit. Also called the waiting period. Top of Page.

Group Income Protection

An insurance scheme taken out by employers to cover a proportion of salary in the event that an employee is unable to work due to illness or injury. For employers wanting a quote please click here. Top of Page.

Hazardous pursuits

A hobby or pastime which may mean the insurer taking on additional risk, e.g. mountaineering, scuba diving, motor racing etc. Top of Page.

Incapacity

Inability to work due to illness, injury or disability. Top of Page.

Income Protection

The technical name for a policy which provides insurance against earnings lost due to incapacity Top of Page.

Indexation

Automatic increases to the benefit and premium each year, either at a set percentage or linked to inflation. Top of Page.

Insurer

The insurance company providing the policy. Top of Page.

Life assured

See policyholder. Top of Page.

Occupation class

The category into which an insurer places an occupation dependent on the risks involved with that occupation. Top of Page.

Own Occupation

A policy set up on this basis will pay out in the event that incapacity prevents the policyholder from carrying out their normal occupation. Top of Page.

Permanent Health Insurance

See Income Protection. Top of Page.

Policyholder

An individual taking out insurance. Top of Page.

Premium

The amount a policyholder pays for the insurance, either monthly or annually. Top of Page.

Provider

See Insurer. Top of Page.

Sum assured

See Benefit. Top of Page.

Term

The age until which an individual has cover, or in the event of a claim the age until which the benefit will continue to be paid (unless there is an earlier return to work or the policyholder dies). Top of Page.

Underwriting

Assessment of the risk by the insurer. Top of Page.

Waiting period

See deferment period. Top of Page.

Get a Quote