Terminology

Accident, Sickness and Unemployment (ASU) - also known as Mortgage Payment Protection Insurance (MPPI)
Provides tax-free replacement income, in the event of ill-health or unemployment, to cover the monthly mortgage and other regular payments, usually for up to one year.

Critical Illness Cover (CIC)
Pays out on diagnosis of a listed condition (depending on the insurer) during the policy term.

Decreasing Term Assurance (DTA)
Decreasing life cover decreases at a flat, fixed rate each year as opposed to matching a mortgage (mortgage protection insurance), which typically reduces more slowly in the early years.

Family Income Benefit (FIB)
Rather than paying out a lump sum, this type of cover will provide a tax free annual income until the end of the term specified at outset.

Guaranteed Premiums
Guaranteed rates remain the same throughout the term of the policy.

Income Protection (IP)
Provides a tax-free replacement income in the event of sickness and/or disability until you either return to work, retire, the policy term expires, or death.

Indexation
This is normally a choice option to a term policy. It means that the policy can be linked to inflation where premiums and benefits increase annually.

Level Term Assurance (LTA)
Life cover that pays out a fixed lump sum if the policy holder/s dies within the specified period of the policy.

Reviewable Premiums
Reviewable rates can be reassessed at the insurer's discretion. Some insurance companies may review annually, while others will review after five years.

Terminal Illness Benefit (TIB)
Don’t confuse this with critical illness cover, this benefit allows those who are diagnosed with less than 12 months to live to claim early on a life insurance policy. The benefit is often included with life cover free of charge.

Total and Permanent Disability (TPD)
Most critical illness policies will offer this cover, which covers any illnesses and medical conditions not listed, where there is no long term prospect of recovery.

Trust
A trust allows you to arrange for the proceeds of your life insurance to be paid to your dependants in a non-complicated manner (such as waiting for legal proceedings on an estate).

Waiver of Premium
This optional extra will cover the cost of premiums during periods of ill health and/or unemployment.