Jargon Buster

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We want to make Life Insurance simple, so you have all the information up front to make the best decision about your policy.  If you’d like us to add any terms to our jargon buster then we’d welcome your thoughts by emailing enquiries@beaglestreet.com.

If an application requires more time for us to make a decision, meaning you may not be accepted for your life cover straight away, then Accidental Death Benefit (ADB) can help. ADB provides short term cover while you wait for a decision. This pays £100,000 or the value in your life cover application, whichever is lower, if you die due to an accident.

An actuary is tasked with calculating the risks involved in Life Insurance and providing advice to insurers on how to assess risk.

Additional critical illness runs alongside your Life Insurance policy. It allows you to receive a lump sum of cash upon diagnosis of one of our listed critical illnesses which include all the main critical illnesses including: cancer, stroke and HIV. In an event where you need to claim on your critical illness cover then your life policy will continue. Your monthly premiums will then reduce as your critical illness cover ceases. Take a look at our critical illness cover page for more details.

The Association of British Insurers (ABI) is a trade organisation representing UK British insurance companies. They are heavily involved in debates surrounding policy and set product recommendations for products in the insurance industry.

This refers to someone who will benefit from your Life Insurance policy by being eligible to receive some (or all) of the financial pay-out. By writing your Life Insurance policy in Trust or creating a Will you can have more control over who your beneficiaries are.

If your child becomes critically ill with one of the illnesses we cover, you could claim a pay-out of £25,000 or 25% of your critical illness cover, whichever is lower. This value will be automatically calculated when you add this cover to your policy. This will help financially support you and your loss of income should you have to take time off from work.

Combined life and critical illness cover will link both benefits into one policy. Under one policy you can only make one claim, so if a claim is made upon diagnosis for one of our critical illnesses then no claim can be made upon death in the future. After a claim is paid the policy will then cease. See here for more details.

This refers to the value of your policy, and what the pay-out would be upon a claim. The cover amount for a mortgage term policy will decrease over time, so it’s worth checking your cover amount in your account.

Critical illness cover (CIC) will pay-out upon diagnosis of one of the critical illnesses we cover. You will usually only get critical illness cover alongside a Life Insurance policy.

This is a tax free lump sum payment that some employers provide, if you die whilst in their employment. The pay-out is a multiple of your salary, usually 4 times your salary. Check to see if death in service makes up part of your benefits package.

Decreasing term insurance allows you to set the cover amount, but this cover amount will decrease as the policy ages, assuming a mortgage rate of 6%. This means that if your mortgage interest rate is 6% or lower than the policy can clear your outstanding debt, but if your interest rate is higher than 6% you may want to consider another option.

This is also commonly referred to as mortgage term life insurance.

This defines how open you are with us in your application. When we say we require full disclosure, we mean we need you to give an honest answer to the questions. If full disclosure is not provided it could lead to your policy being invalid.

The estate refers to your assets owned at the time of death, including property, personal possessions, financial benefit and Life Insurance. If you write your Life Insurance policy in Trust then it doesn’t form part of the estate.

All our policies and policyholders are protected by the Financial Services Compensation Scheme (FSCS). The FSCS is there so if an insurer cannot meet their obligations under your policy, you may be entitled to compensation. Visit www.fscs.org.uk/ to learn more.

This refers to Life Insurance aimed at businesses looking to cover their employees death in service benefit.

By writing your Life Insurance in Trust you are creating a legal document that states who will be responsible for distributing your pay-out to your beneficiaries. These people are named Trustees.

There are many benefits of writing your policy in Trust, including a faster pay-out and possibly avoiding the pay-out being included as part of your estate which may be subject to inheritance tax. We offer a free service to place your policy in Trust.

A Trustee is someone who is responsible for distributing a Life Insurance pay-out to the beneficiaries. They are chosen by the policyholder when the policy was written in Trust.

This is the process where the insurer collects information about your health, lifestyle and occupation, which helps determine an accurate price.

This is where the policy premiums are fixed within the set policy term. No matter what happens, your premiums will never change. All the policies we offer here at Beagle Street are guaranteed premiums.

If you are unable to work due to sickness or injury then you may struggle financially. Income protection acts to pay a proportion of your salary for a set period of time, depending on your policy term.

Increasing term insurance is almost the exact opposite to mortgage term life insurance. With this type of policy the cover amount increases as the policy ages, which compensates for inflation typically, for this reason an increasing term policy will be more expensive.

Joint Life Insurance will cover two lives under one policy. This means there will only ever be one pay-out, upon the death of the first policyholder. After this claim has been made the policy will cease and no pay-out can be claimed on the death of the second policyholder.

If you are looking to cover multiple lives then you have two options; take out a joint Life Insurance policy or two single policies.

With level term Life Insurance your cover amount will be fixed for the duration of your policy term. This means that any pay-out will be of the same value no matter whether it was claimed at the start or near the end of your policy term.

Life assurance guarantees a pay-out when you die. The key difference between life assurance and insurance is the duration of the policy term. Life insurance will pay-out upon death within a set policy term whereas life assurance will pay-out when the policyholder dies. For this guaranteed pay-out it is often more expensive. See our guide for details.

This is also commonly referred to as whole of life cover.

Life Insurance will provide a lump sum pay-out upon a successful claim, whereby the policyholder dies or is diagnosed with a terminal illness (no claim can be made in the final 12 months of your policy for terminal illness) within the set policy term.

Mortgage term Life Insurance is a type of policy whereby the amount you are covered for will decrease over time, although the price you pay for premiums is fixed. This is why a mortgage term Life Insurance policy is cheaper than level term. A mortgage term policy is typically used to cover against a mortgage, whereby your level of debt will decrease over time.

The cover amount with our mortgage term Life Insurance policies decreases assuming a mortgage rate of 6%, so if your interest rate is 6% or lower than your cover amount can clear the outstanding debt, but if you are paying more than 6% interest then you could be better off looking around.

When there is a death, that death needs to be registered within 5 days. You will be sent some documents that you will need to plan the funeral. We search official records to see if there are any Beagle Street policies that have not been claimed.

This is a very specific type of Life Insurance for over 50s, which typically acts as life assurance. This means that the pay-out can be claimed when the policyholder dies, not if they die in the policy term like Life Insurance. See our assurance vs insurance guide here.

The person who owns the policy and is named in the policy documents.

This is the length of time the policy will be valid for. This is chosen by the policyholder within their application. Our maximum policy term is 40 years, depending on your age.

This is the monthly cost of your policy.

Terminal illness cover provides an early pay-out from your Life Insurance if you are diagnosed with less than 12 months to live. Once this claim has been made, the policy will cease and a claim cannot be made upon the death of the policyholder. We include this cover free with every policy.

This is an add-on product sometimes offered alongside Life Insurance. Where you are unable to pay your premiums for a pre-specified reason, it allows you to still be covered until you return to work or for a pre-set period of time – often the remainder of the policy term.

Whole of life aims to cover you for the whole of your life. This means premiums need to be paid until you die, though it can be limited to a specific age (check with your insurer). It is typically more expensive than Life Insurance due to this guaranteed pay-out. Whole of life is commonly referred to as life assurance.

A Will is a legal document that sets out who will receive your assets when you die (read more). We offer a free Will writing service when you take out a new policy with Beagle Street. Phone 0800 058 2929 (Monday – Friday 8am-9pm, Saturday 9am-5pm, Sunday 10am-3:30pm) and arrange for a Will pack to be sent to you. This offer is valid for 6 calendar months from the purchase date of the Life Insurance policy.