Frequently Used Terms

A contract under which an insurance company promises to make a series of periodic payments to an individual, in exchange for a premium or a series of premiums (see definition of Premium below).

This refers to medical services covered by your health plan. This word is also used to describe your health plan in general. It can also mean payment received under a plan. 

The amount, before adjustments for factors such as policy loans, that the owner of a cash value life insurance policy is entitled to receive upon surrendering the policy (see definition of Surrender below).

The savings element of a cash value life insurance policy, which represents the policyowner’s ownership interest in the policy.

A flat dollar amount of, such as $300, that an insured must pay before the insurance company will begin making any benefit payments under a medical insurance policy.

The amount of the policy benefit listed on the first page of a life insurance policy.

The effect on an insurance policy if a renewal premium has not been paid by the end of the grace period.

This provides a cash lump sum in the event of death of the life assured individual.

An insurance contract under which the insurance company promises to pay a benefit upon the death of a named person.

A loan a policyowner receives from an insurance company using the cash value of a life insurance policy as security.

A specified amount of money an insurance company charges in exchange for its agreement to pay a policy benefit when a specific loss occurs.

An amendment to an insurance policy that becomes a part of the insurance contract and that either expands or limits the benefits payable under the contract.

An investment feature within the Sagicor Life Inc Universal Life policies that allows for contribution, lump sum payments and withdrawals of cash.

The voluntary abandonment of a life-insurance policy by the owner for any of its cash surrender value.

Insurance that provides a policy benefit if the insured dies during a specified period of time.

The process of identifying and classifying the degree of risk represented by an individual who is being considered for insurance.

A supplemental life insurance policy benefit under which the insurance company promises to give up i.e. to waive, its right to collect premiums that become due while the insured is totally disabled.