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Glossary terms

A

Accelerated benefit

A benefit that pays out a portion of the sum assured based on certain criteria being met. The pay-out of the accelerated benefit will reduce the total cover amount on the policy by the amount paid out.

Accidental death

A sudden and unforeseen event occurring at an identifiable place and time, which has a visible, violent or external cause, and results in the death of the life assured.

Accidental death benefit (ADB) cover

This benefit is an insurance pay-out that occurs should the life assured die as a result of an accident.

Accidental disability

A sudden and unforeseen event occurring at an identifiable place and time, which has a visible, violent or external cause, and results in the disability of the life assured.

Aggregation of cover

The sum of life insurance benefits owned by the policyholder, across all insurers, used to determine the maximum allowed. The insurance industry uses aggregation to prevent clients from purchasing more life insurance than allowed.

Annual benefit increase

This is the percentage by which your benefits increase on your policy anniversary every year. The first increase will be at month 13 and all increases will end in the year a policyholder turns 65.

Annual contribution increase

This is the percentage by which your premium increases on your policy anniversary every year. The first increase will be at month 13 and all increases, except increases that are dependent on the policyholder's current age, will end in the year a policyholder turns 65. Increases that depend on the policyholder's current age will continue after age 65.

B

Beneficiary

On the death of the life assured, this is the person or institution nominated by the life assured as the person in respect of whom the insurer should pay the policy benefits.

Benefit escalation

Expense Protector includes an optional benefit escalation which provides the policyholder with the option to increase the benefit pay-out by 5% on the anniversary of the policy, as well as when a claim is made.

C

Cancellation date

The date on which cover under the contract ends and the benefit ceases.

Claimant(s)

This refers to a person submitting a claim on an insurance policy.

Commencement date

The date on which cover under the contract starts.

Contract term

The length of time the life assured will enjoy cover under the contract.

Cooling-off period

The policyholder may reconsider and/or cancel his/her contract during this period, without incurring any penalties, provided he/she has not made any claims.

D

DebiCheck

DebiCheck helps you control how certain debit orders are taken off of your bank account. You confirm this once, at the start of the contract. This is done to inform your bank that you give permission for the money to be taken from your account.

Deferment period

The period of time that has to elapse, after occurrence of an event that leads to a disability insurance claim, before the life assured is entitled to receive a benefit.

Dependant/s

A person who relies on another, especially a family member, for financial support.

Disability cover

Disability cover is the benefit that pays out in the event of the disablement of the life assured. Disability benefits vary with different insurers and products; for instance, some products cover the life assured for specific events and others for occupation-related disability events.

Direct life insurer

This means that you are able to buy your funeral or life insurance directly from our website or through our call centre and not through a broker. Direct insurers also offer quick and convenient service.

Dread disease cover

Dread disease cover is the benefit that pays out if the life assured is diagnosed with a life-changing disease or life-threatening event as specified by the contract.

E

Estate

The property, possessions and assets that belonged to or are due to the life assured on the death of the life assured form the deceased estate and where there are assets that need to be administered.

Event-based disability

This product pays a percentage of the sum assured for disability according to the criteria described in the tables within your policybook. These criteria include loss of or loss of use of limbs, blindness, deafness and/or loss of speech.

Exclusion

Exclusions are the scenarios in terms of which the policy will not perform and no claims will be paid. Refer to your policybook and policy schedule for general and/or specific exclusions that may apply to your policy and cover benefits.

An example of an exclusion is that all 1Life Insurance policies have a general exclusion for claims arising from the life assured being involved in any illegal activity. This includes theft, fraud and illegal activities such as selling unlicensed drugs.

Expense Protector

1Life Expense Protector pays out if the life assured does not receive their regular income due to incapacitation as a result of either illness or injury. Expense Protector can be purchased on its own, or as part of a life insurance policy.

Extended family member

An extended family member does not fall within the definition of an immediate family member such as your spouse, child, parent or sibling. Aunts, uncles, grandparents, grandchildren, siblings-in-law, half-siblings, cousins and step-parents/step-children are extended family members.

F

Financial needs analysis

A financial needs analysis gives you detailed advice on how much insurance you need as well as what you should be saving and investing every month to reach your financial goals.

Financial Services Provider (FSP)

An authorised Financial Services Provider that can sell financial products to you subject to regulation under the Financial Advisory and Intermediary Services Act, 2002 (FAIS).

Fixed sum assured

On the anniversary of your policy, and annually thereafter, your premium will increase by a compulsory 5%. Your sum assured will remain fixed.

Flat premium

Both your premium and sum assured remains flat annually.

G

Generational wealth

Generational wealth is family assets like money or property that are passed from one generation to the next.

Guardian’s Fund

The Guardian’s Fund is run by the Master of the High Court and administers funds on behalf of minors, people incapable of taking care of themselves, unborn heirs etc. In the absence of a trust fund, life insurance claims that should be paid to minors will be paid into the Guardian’s Fund.

Guaranteed assurability benefit

With 1Life Pure Life Cover, on every third policy anniversary, the amount of life cover may be increased by 25% of the original insured amount, up to a maximum of 2 times (double) the amount originally insured or up to the 1Life Insurance maximum insurable amount at the time – whichever is the lower. This is without the need for any further medical underwriting, other than providing a new negative HIV test for the life assured. Ts&Cs apply.

H

Hazardous pursuits

Activities (normally of a physical nature) that increase the risk of death or disability for the life assured. These activities include, but are not limited to, rock climbing, scuba diving, paragliding, hang-gliding, fighting (except for self-defence) and speed contests. The insurer may apply special conditions to the policy or exclude a benefit if the policyholder discloses taking up a new activity.

I

Inflation aligned increases

On the anniversary of your policy, and annually thereafter, your sum assured will increase in line with the last 6 months’ inflation rate and the premium will increase in line with the last 6 months’ inflation rate plus 3%.

In force

This means that the policy benefits have not expired or been cancelled, premiums are being paid and are up to date.

Inflation

Inflation is the rate at which prices increase over time, resulting in a fall in the purchasing value of money.

Insurable interest

A person has an insurable interest in the life of the life assured if the death, disability or illness of the life assured would result in financial loss for that person. This means that there needs to be a recognised relationship between the policyholder/owner/principal member and the life assured at the time of the commencement of the policy. Life insurers consider everyone to have an insurable interest in their own lives as well as the lives of their spouse and dependants. Where no insurable interest exists, the applicable benefits will be void from the commencement date.

Insurer

A Licensed Life Insurer and Financial Services Provider that underwrites the life and funeral insurance policy.

Interest rate

The interest rate is the amount a lender charges a borrower and is a percentage of the amount loaned.

J

No entries available

K

No entries available

L

Lapsed policy

The policy for which all benefits to the policyholder cease and is terminated due to non-payment of the premium amount on the due date or even after the grace period is called a lapsed policy.

Life assured

The person who would experience the insured events described in the policybook.

Life cover

The life insurance benefit that pays out in the event of the death of the life assured.

M

Material information

Information provided by the life assured to enable the insurer to accurately assess the risk and to determine if the policy can be accepted or not.

Maximum sum assured

A maximum sum assured is the amount limit per life assured covered on their policies where the maximum claim amount payable for all policies is a certain amount.

Minor beneficiary

A beneficiary on an insurance policy who is under the age of 18 years.

N

Natural death

Death that occurs from natural causes such as disease or old age, rather than from an act of violence or injury as defined under accidental death.

O

Occupation-based disability

This product pays out a lump sum if you, the life assured, becomes disabled and:

  • Is totally and permanently unable to perform the normal tasks required by your normal occupation and
  • Cannot do any other work that you would be able to do, given your education, knowledge, training or experience.

The maximum benefit amount as stated in your policy schedule, will remain the same until 5 years before you turn 65 or reach your selected retirement age, whichever is earlier. From there on, your insurer will reduce the sum assured once a year until it reaches zero.

Ombudsman For Long-Term Insurance

An independent office responsible for resolving disputes between complainants and insurers arising from insurance policies.

P

Policy anniversary

The date one year from the commencement/cover start date, and every year thereafter for the life of the policy.

Policybook

The policybook contains important policy terms and conditions, including information on restrictions, waiting periods and exclusions, and should be carefully read by all policyholders. The policybook is to be read alongside the policy schedule in terms of your contract.

Policy schedule

Policy schedule refers to the policy agreement i.e. the document containing details such as information on the life insured and/or the insured persons, policy period, cover and benefits, limits to which benefits are subject to, waiting periods, beneficiaries and other relevant terms and conditions. The policy schedule should be read alongside the policybook in terms of your contract.

Policyholder/owner

The person or institution who owns the policy. Usually this is the life assured, however, you may own a policy that names someone else as the life assured. In order to be an owner of a policy, clear insurable interest needs to be established. The policyholder/owner needs to ensure that the premiums are received even though there may be a different person paying these premiums.

Pre-existing condition

A pre-existing condition is a medical condition that started before a person's policy or benefit commenced.

Premium guarantee period

The length of time for which the insurer guarantees premiums not to change, other than through compulsory annual premium escalations.

Premium payment term

The length of time for which premiums are payable for cover.

Principal member

The person who owns the funeral policy; although there may be a different person paying premiums on the policy, the principal member is ultimately responsible for the payment of premiums on the policy.

Premium waiver (Life)

If the life assured becomes disabled and is paid a lump sum disability or dread disease benefit, the premiums for pure life cover and disability/dread disease cover (if applicable) will not be charged for a period of 5 (five) years, as stated in the policy schedule. Policy premium collection will re-commence and is payable again when the premium waiver period has expired.

Premium waiver (Funeral)

If the principal member passes away and their funeral claim is paid, the premiums in respect of the additional members covered on the policy will not be charged for a period of 2 (two) years. At the end of the premium waiver period, the first spouse covered on the policy can exercise a continuation option to continue with the policy and premiums will be payable again.

Q

No entries available

R

Reinstatement

Should your contract no longer be in force; your insurer may reinstate your contract at your request. Your insurer reserves the right to review and underwrite the policy terms and conditions on reinstatement and assess whether to reinstate the cover.

S

Stand-alone benefit

If a claim pays out under a stand-alone benefit, this will not reduce the cover amount under any other benefit on the policy.

Sum assured

The amount of cover that the life assured applied for with the insurer. The cover amount for a level sum assured product remains the same for the life of the policy; for an escalating or increasing sum assured it increases on every policy anniversary; and for a decreasing sum assured, it reduces gradually.

T

Term assurance

A type of life insurance that limits cover to a specified period.

Terminal illness cover

The life insurance benefit that pays out the full life cover amount to the life assured, while they are still alive and in the event of their doctor’s and the insurer’s chief medical officer’s (CMO) diagnosis that the life assured suffers a terminal illness with a life expectancy under a certain time frame, as defined by the life insurer.

Top up cover

Covered by another insurer? Upgrade with 1Life Insurance and add up to R3 million cover with no medicals. Ts&Cs apply.

U

Underwriting

The process during which the insurer determines the level of cover it is prepared to offer, taking into consideration various financial limits based on age, gender, education, occupation, income, current life insurance cover, hazardous pursuits / hobbies, personal health status, family health history and insurable interest.

  • Financial underwriting measures the potential financial loss to the insurer to determine the proposed sum assured and product they can accept.
  • Medical underwriting measures the health status of the life assured to determine whether to offer or deny cover and at what premium.
V

No entries available

W

Waiting period

The period during which time a claim cannot be made on the policy and premiums are payable to the insurer.

Whole of life

A life insurance benefit that provides cover throughout the entire lifetime of the life assured.

X

No entries available

Y

No entries available

Z

No entries available

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