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Glossary of Life Insurance Terms

Level Term - Most basic type of life insurance . Over the life of the policy , the premium paid is fixed and a fixed lump sum is paid out should the policy holder dies within the policy period.

Convertible Term - It's a type of level term insurance with the option of converting the policy into a whole life policy or an endowment policy at an unspecified date in the future.

Decreasing Term - Also known as mortgage life insurance , it's a lump sum policy that repays the outstanding mortgage. The payout dereases at a fixed rate.

Renewable Term - It allows the policy holder to extend the cover for a period of time after the original end of the policy.

Increasing Benefit - Protects the policy holder against inflation . It allows for additional cover as your income increases .

Family Income Benefits - Pays out an annuity (regular payment per certain period) in the event of death or diagnosis of a specified critical illness during the cover period for your dependents

Mortgage Protection -Reducing lump sum policy to repay the capital & interest mortgage repayment in the event of death or critical illness.

Critical Illness - Pays out the sum insured on diagnosis of the person contracting one of the specified critical illness that includes heart disease , stroke and cancer. Not offered as a standard part of life insurance policy.

Whole Life Assurance - Insurance that pays out a guaranteed sum upon death with the acculumuation of added bonuses and growth in funds invested .

Guaranteed Premiums - Premiums remain fixed throughout the life of the policy , if it's linked to indexation option, then it will rise with inflation.

Reviewable Premiums - Reviewed every 6 months . It can increase or decreased depending upon claims and other factors.

Life Insurance in Trust - In the event of death, beneficiaries are entitled to a payout that would not be subjected to tax.

Waiver of Protection - Form of Protection that if policy holder is unable to hold his job due to illness or injury, he/she will receive benefits stated within the policy .