Paid-up additions
When we issue dividends, you may wish to use these to get additional coverage instead of paying an additional premium. This is a good way for you to increase your protection without increasing your premiums. This is sometimes called paid-up additional insurance.
Participating policy
A participating policy is an insurance contract where you 'participate' in the profits of the insurance investment, which means that you may receive dividends. These profits are not guaranteed.
Permanent partial disability vs Permanent total disabilit
The term 'disabilities' can be classified as temporary or permanent, and as partial or total, depending on circumstances.
Temporary disabilities means that you are either unable to work full-time (this is called 'temporary partial disability') or unable to work at all for a period of time (this is referred to as 'temporary total disability'). In either of these situations, you are expecting to make a full recovery and return to work as normal at a later stage.
In the case of a permanent disability, you would never be able to work in the same capacity as before you were ill and/or injured. A permanent disability would prevent you from being able to work full-time for the rest of your life (this is called 'permanent partial disability'), whereas a permanent total disability means that the you will never work again.
It is important for you to understand which of these 4 types of disabilities are covered by your policy, so be sure to read and understand the terms and conditions.
Policy loan
A life insurance policy loan is just a loan from the 'cash value' of your policy. It is important that you keep up the payments on your loan so that we do not need to reduce the final pay-out.
Policy owner
A policy owner is the person in whose name the insurance policy is held and has full rights to the policy. Another term for this is 'policyholder'. So, if you buy an insurance policy under your own name, you’re the policy owner
Policy year
This refers to every 12-month period, starting from the day the policy becomes effective.
Policyholder
A policyholder (also known as 'policy owner') is the person in whose name the insurance policy is held. So, if you buy an insurance policy under your own name, you’re the policyholder.
Pre-existing condition
This is a health condition (either physical or mental) that is diagnosed before your policy becomes effective. It is important that you declare these conditions, so that we can confirm whether we can cover them. If you do not declare these conditions upfront, your policy may become invalid.
Premium
The amount required to be paid for your insurance policy.
Premium holiday
The option where you may choose to stop paying premiums for a period of time given that the account value of the policy is sufficient to cover the policy charges. In such event, the benefits payable under the insurance policy shall continue to apply.
Premium paying term
The term of the insurance policy (eg. years) that a policy owner will need to pay premiums.
Premium rate
The amount charged for your insurance policy which is typically calculated based on your age, gender and smoking status. The premium rate of a policy is non-guaranteed, unless stated otherwise.
Projected account value
The projected value that you may receive if you surrender the insurance policy and is net of policy charges.