Glossary of terms
On this page you will find definitions for some words commonly used in the insurance industry.
Advisor – these are people who have made it their job to know about insurance products and underwriting companies. They give free advice to interested people and receive commission payments from underwriting companies when the sell an insurance policy.
Assessor – assessors work for insurance companies, it’s their job to work through the claims process with clients.
Broker – please refer to the definition of “advisor” above.
Claim – when you want to access any of the benefits provided by your insurance policy you make a claim. Generally speaking the following steps are necessary to make a claim: contact your insurance company and request a claim form, gather all required documentation and evidence, forward the completed documentation to your insurance company.
CPI (consumer price index) - a statistical estimate of the level (cost) of prices of goods and services bought for consumption purposes by households. The CPI is linked to inflation in that if inflation is 3% the CPI increase is 3%.
Cover – this word is sometimes used to refer to an insurance policy. Your cover is your insurance policy and the associated benefits it provides.
Direct Debit – this is a convenient way to pay your premium. You can give authority for your bank to make your premium payment straight from your bank to your insurance company.
Health screen nurse – this is an independent registered nurse who works for an insurance company. Health screen nurses visit people in their homes to conduct health screen checks. Depending on what type, and how much insurance you have applied for it may be necessary to complete these checks before your insurance can be put in place.
Paramedic nurse – a paramedic nurse is the same as a health screen nurse. Please refer to the definition for health screen nurse.
Policy – this a legal agreement between you and your insurance company. Among other things it defines benefits, rights and obligations.
Policy fee – this is a fee charged by some insurance companies to administer your policy.
Premium – this is the payment you make to your insurance company to keep your insurance policy active. You can make weekly, fortnightly, monthly, quarterly or yearly premium payments.
Stand down period – with some (not all) insurance companies and some types of insurance cover (not all) there is an agreed period of time before you can make a claim.
Underwriting company – this is the company that your insurance policy is with. These companies design insurance products (policies) to meet consumer demands. Their products are sold through brokers/advisors. You pay your premiums to the company that underwrites your policy and that same company makes the pay out to you when a claim is approved.
Waiver of premium (WOP) – where WOP is not a built-in benefit, it can be added on to some products as an optional extra. It removes the burden of paying premiums when you are unable to work due to total disability, saving you money when you need it most. Even though you may be disabled, you will still need to keep your life insurance and other covers going.
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