You don't need a specialist dictionary to understand a funeral expense insurance offer – fifteen terms are plenty. Here they are, each in a clear sentence, with links to articles that go deeper.
- The fifteen terms cover the whole journey, from taking out the policy to the payout.
- Each one links to a fuller article – from here you can go on to any of them.
- The complete, detailed collection is in the Glossary A–Z article.
The people involved
Policyholder: the person who takes out the policy and pays the premium. Insured: the person whose life the cover relates to. Beneficiary: the person the insurer pays the benefit to – where named, typically independent of the estate. Broker: an independent intermediary acting on the client's behalf. More detail: the three roles.
The cover
Sum insured: the fixed sum set out in the policy, payable on death. Commencement of cover: the point in time from which the insurer bears the risk. Waiting period: the first period during which the benefit for death from illness is limited. Graded benefit: the benefit that rises in steps over the first years with some products. Accidental death: cover for this typically applies from day one, with several products paying an increased sum.
The premium and time
Premium payment term: the period for which the premium must be paid – after which cover typically continues even without further payment. Indexation: the yearly adjustment of the sum, and typically the premium, to keep pace with prices. Paid-up reduction: stopping premium payments so that cover continues at a lower sum. Surrender: ending the policy in exchange for a payout – with funeral expense products, this is often unavailable or limited.
The claim
Claim: reporting the death to the insurer and requesting the payout. Death certificate: the core document needed to file the claim. These two terms come to life in the article on filing a claim – and the full collection is in the Glossary A–Z.
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