Glossary

Understand your cover with confidence.

Insurance terminology can make protection decisions clearer and more informed when it is explained in plain language.

A-C

Common insurance terms.

ACCNew Zealand’s scheme for accidental injury compensation. It can cover medical costs, rehabilitation, or partial income.

Accelerated BenefitA type of cover that reduces another linked benefit when a claim is made.

Agreed Value Income ProtectionCover where your income is confirmed at application, and payments are based on that figure.

Benefit PeriodThe maximum time you can receive payments once you claim on a monthly benefit product like Income Protection.

CPIConsumer Price Index inflation measure. If applied to your policy, it increases cover annually to match inflation.

D-L

DisclosureThe process of sharing accurate health and financial information. Not disclosing material information could affect your claim.

ExcessThe portion of a claim cost you pay yourself, common with medical insurance.

ExclusionA condition or scenario not covered by your policy. It may be general or specific to you.

Health InsuranceHelps cover the cost of medical treatment, including surgery, specialists and diagnostic tests.

Income Protection CoverPays a monthly amount if you are unable to work due to illness, injury or accident.

Life InsurancePays a lump sum to your family if you pass away, helping with living costs, debt, funeral expenses and future needs.

M-R

Medical UnderwritingThe process where insurers assess health risks before offering cover.

Mortgage Repayment CoverPays a monthly amount toward your mortgage if you cannot work due to illness, injury or accident.

Non-PHARMAC DrugsMedicines not funded by New Zealand’s PHARMAC system. Some medical insurance policies cover these.

OffsetWhen another benefit, like ACC, reduces your claim payment.

PremiumThe amount you pay for insurance cover, either monthly, quarterly or annually.

S-Z

Severe Trauma CoverPays a lump sum if you are diagnosed with a serious and potentially life-threatening condition listed in the policy.

Standalone BenefitCover that operates independently. If you claim, other cover amounts are not affected.

Sum InsuredThe amount your policy would pay out if you claim.

Total Permanent DisabilityPays a lump sum if you are unable to work again.

Trauma CoverPays a lump sum if you are diagnosed with a serious medical condition listed in the policy, such as cancer, stroke or heart attack.

UnderwritingThe insurer’s process for assessing risk and deciding whether to offer cover, and on what terms.

Wait PeriodHow long you must wait before benefits begin after a claim event.

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