We all know how easy it is to get bogged down by technical terms when you are considering getting life insurance, or any kind of financial product for that matter. Here at Shepherds Friendly, we’ve put together a helpful, easy to use “Jargon Buster”. We hope you will use this to help make a fully informed decision for yourself when it comes to choosing Over 50s life insurance.
A ‘Financial Adviser’ is a person who has the required professional qualifications to advise people on their financial planning needs, this can include: Pensions, Investments, Insurance, Mortgages, Wills & Trusts, and Tax.
To operate in most of the areas listed above, they would need to be a regulated financial adviser, and this means being registered with the government appointed body which oversees financial services – the FCA (Financial Conduct Authority).
Advisers working with pensions and investments also must be on the Financial Services Register, which is a public record of all the firms and individuals in the financial services industry that the FCA regulate.
A ‘Fixed Premium’ is a regular premium payment amount that is guaranteed to remain the same throughout the life of a policy.
‘Guaranteed Acceptance’ is used to describe a life insurance plan where no medical information or history is requested and the applicant is therefore guaranteed to be accepted for the plan. An example of this type of plan is an Over 50s Plan.
A ‘Legacy’ is a sum of money left to an individual’s next of kin upon their death.
Level Term Life Insurance
A ‘Level Term Life Insurance’ policy has a payout (the sum assured) that remains the same throughout the policy term, no matter when a claim is made.
The person on whose death the benefits under the policy become payable.
A ‘Lump Sum’ is term used to describe a single sum of money paid in the event of a claim on an insurance policy.
Over 50s Life Insurance
An ‘Over 50s Life Insurance’ plan is a ‘whole of life’ regular premium insurance policy that can only be taken by persons aged 50 or over. It is typically used to provide money for funeral costs and so this type of plan often has the option to have the policy proceeds paid directly to a specified funeral provider.
‘Premiums’ are the regular contributions paid by a policyholder to maintain their insurance policy.
A “policyholder” is a person who is the actual “owner” of the policy and can be someone other than the “Life Assured”.
The ‘Sum Assured’ is the agreed amount paid by an insurer to the policyholder when a claim is made.
Whole of life insurance plan
A ‘Whole of Life Insurance Plan’ is a policy that provides life insurance to an individual for the whole of their lives and is therefore guaranteed to pay out whenever death occurs.