Speak to a specialist
Sometimes it's easier to speak to a human. If you’d rather have a chat with one of our trained protection specialists, you can call us on 0330 330 9465. Our offices are open Monday to Friday, 9am to 5pm.
What does it all mean?
Best Insurance policy documentation and this website contain certain words and phrases which have special meanings. It can be simpler to understand your policy with help of this brief jargon buster.
Accident, Sickness and Unemployment Insurance
This payment protection insurance policy covers you for a tax-free monthly income generally for up to 12 months (please refer to your policy schedule for exact number of months) incase you are unable to work due to Sickness, Accident or Unemployment or Redundancy. The term ASU is also used to describe this type of insurance.
This is the summary of information provided by you while applying to buy our policies. All our policies – payment protection, income protection, ASU, unemployment etc are issued on the basis of information provided and declared by you. Please be accurate and careful in the information you furnish while buying the policies as the information furnished by you is used by us to assess the risk. Inaccurate information or disclosure not made while applying for a policy may result in your claim not being paid if a non-disclosure is found at the time of making a claim.
Employed on a contract for a specific term or undertaking. The minimum length of contract & number of times the contract has been renewed will vary depending on the insurer. Please refer to this section in the policy wordings to determine what will be applicable for you.
The obligation(s) for which you have to make a regular payment, which you have elected to cover under this policy.This can include your mortgage or other loan secured on your home or the rent payable for your home.
Means a medical specialist, other than you, your partner or any of your relatives who is a member of a College and recognised by that College to be a consultant.
The date a change to your policy has taken place.
It is the date on which the payment will be taken from you towards the monthly payment of the policy. The insurer will use the account designated by you in the payments page on the application. Like all insurance policies, non-payment of the monthly premium can result in automatic cancellation of your policy. If you happen to change your account or the bank you deal with, please let us know promptly and we will make necessary changes in our systems.
A person qualified and registered as a medical practitioner who is not you or your family and who is recognised by the General Medical Council.
Your work must either be full time on a permanent basis, or on a fixed term basis, or on a sub-contractor basis. You should be working for at least 16 hours a week and your sole source of income comes from that contract. Your employer should deduct PAYE tax and National Insurance (N.I.) contributions from your gross income.
You must have been in continuous permanent employment at the policy start date for a minimum of 6 months. Please check your policy wordings for full details.
The date on which the first of the events shown under the heading “Termination” occurs
These are specific conditions that are described in the policy wordings when a claim will not be paid out. It can be for pre-existing conditions, accident and sickness that happens when outside the UK or certain hazardous activities and pursuits.
This means you are entirely without work solely due to the need to care for a partner or relative and you are registered with your local Social Services Department as a carer and entitled to carer’s allowance
Employed on a contract that has no restrictions or limitations as to when it may end or on an annually renewable contract under which you have been with the same employer for at least two years and the contract has been renewed at least once.
Employed on a contract basis by the same employer for more than 6 months and the contract has been renewed at least twice.
An average monthly remuneration you receive before deduction of all taxes. The average is taken over the six months prior to the point of time under consideration.
Regardless of whether you are employed, self-employed or a contractor, income protection insurance pays out the Benefit amount free of tax if you are unable to work due to Accident, Sickness or Unemployment (Involuntary Redundancy). Please check the waiting period or excess days as benefit will not be paid during those periods. The benefit amount will be paid only after the excess periods.
Depending on the insurer and product, you can generally cover up to a maximum of £2,000 or 50% of your gross monthly income, whichever is the lesser.
The period after you buy a new policy or following a cover increase date where a claim cannot be made. ‘Initial Exclusion Periods’ are mainly used for Income Protection Insurance and Mortgage Payment Protection policies. This is applicable to Unemployment Cover or Redundancy Insurance only.
(If you have transferred income protection cover from an alternative insurer that has provided full unemployment cover for this commitment over at least the last 6 months, for which you have not made a claim in the last 6 months and you can provide proof of this prior cover then, subject to a limit of the same benefit amount, this initial exclusion period will be waived.) The ‘Initial Exclusion Period’ or ‘Qualification Period’ will be specified on your certificate of insurance.
A period of twelve months for which the claims are paid out of the Income Protection, Payment Protection, ASU policies etc.
The total monthly amount you have elected to insure under this policy, subject to a maximum of the lesser of:
- one and a half times the amount of your commitment such as mortgage re-payments, secured loan re-payments or monthly rents or
- the maximum total benefit as shown in the schedule or
- 50% of your gross income before any deductions
The document which details the terms and conditions of your cover. It should be read in conjunction with your schedule.
The document accompanying your policy which confirms the benefit period, policy start date, policy review date, waiting period and monthly benefit which you have applied for and which we have accepted.
The date on which your cover begins as shown in your schedule
The period during which you are covered under this policy. This term commences at 00.01 hours on the start date and continues until 23.59 hours on the end date.
This is the amount of benefit you have chosen to buy with the insurance policy. This amount is paid out in the event of a valid claim. It is paid up to a maximum period of 12 months
This is a loan taken out through a recognised bank or building society for the purchase of the residential property that you occupy. The mortgage usually specifies payment periods and interest rates along with the loan amount.
This policy pays out if you are unable to work due to Accident, Sickness or Unemployment (Involuntary Redundancy). Please check the waiting period or excess days as benefit will not be paid during those periods. The benefit amount will be paid only after the excess periods. Regardless of whether you are employed, self-employed or a contractor, mortgage protection insurance pays out the benefit amount free of tax up to a maximum of £1,500 or 50% of your gross monthly income, whichever is the lesser. You can cover your monthly mortgage repayments plus up to an extra 50%, up to a maximum of £ 1,500 per month.
This refers to not declaring required information on the application form while buying an insurance policy. You have to answer all questions truthfully and disclose any relevant information that is requested. If information is omitted, partially disclosed or not disclosed, it could lead to the policy not paying out in the event of a claim.
Any changes to the details furnished by you in the application should be notified to us immediately. For example if you change employer, occupation, mortgage payments (in case of mortgage protection), and changes in your income etc. These are not a complete list and if you need more information, please feel free to call us before you buy these policies.
Means the cover provided to you under the terms and conditions of this insurance contract.
These include the policy wordings, schedule of insurance and any endorsements. You should receive your policy wordings with in 10 days of buying your policy.
This describes the policy and is sent along with your schedule of insurance. The standard policy wordings template can also be downloaded from the policy wordings section of the website.
Means any sickness, condition or injury whether diagnosed or not about which you knew or should reasonably have known at the policy start date or had seen or arranged to see a doctor during the 12 months prior to the policy start date
Means the amount you must pay for the policy cover. This can differ between insurance policy type such as Income Protection, Payment Protection to Unemployment only or Redundancy Protection only insurance.
Normally the final amount you receive from your employer if you are made redundant. Redundancy pay outs do not affect your ability to claim on our Payment Protection Insurance or Income Protection Insurance policy.
This term specifies that the premium for your insurance can be reviewed. If your premium is reviewed by the insurer, you will get at least 30 days notice in writing. More information on premiums and reviews can be seen in the policy wordings.
You will receive this as part of the policy documents along with the policy wordings and endorsements(if any). They are terms and conditions specific to you and should be read in conjuction with the policy wordings and endorsements.
This means you carry on a business in the United Kingdom alone or with others and pay Class 2 National Insurance contributions and are classed as Schedule D for income tax purposes. You can control the affairs of a Business you work for because you or a relative or a member of your household individually or jointly has a controlling interest in that busines
Conditions on which the policy ( Income Protection, Mortgage Protection, ASU, Unemployment Cover, Redundancy Protection etc) is offered by the insurers.
The information you provide on the application form is used by the insurers to assess the risk and helps them in making the decision as to whether a policy can be issued or not. Please ensure that you provide accurate answers to the underwriting questions as any wrong answer can result in your claim being disallowed.
This means you are out of work directly due to circumstances beyond your control and you must be:
- Receiving income support, job seekers allowance or
- You do not qualify for these benefits because you have been entitled to make reduced National Insurance contributions in the past
- Actively seeking work
- Registered as available for work at a Job Centre Plus or the Department of Health and Social Security in Northern Ireland
- Entirely without Work
- Not in receipt of wages in lieu of notice.
- If you stop work to become a full-time carer, you must be registered as a full-time carer and entitled to carer’s allowance and not in receipt of any payment in lieu of notice.
Time period you have to wait before a claim is paid.
Paid work of at least 16 hours a week. This includes self-employed work and statutory maternity and parental leave but not temporary work.
The Insured Person whose details are set out in the schedule.
Please note that all definitions are intended for general guidance only. As each insurer may have a different definition, you should double check the policy wording before you complete your application.