Issue link: http://clhia.uberflip.com/i/369328
34 P Paid-up insurance. Life insurance on which all the required premiums have been paid and coverage continues. Partial disability benefit. A disability benefit that pays a monthly amount that is less than a total disability benefit. In this situation, the insured person cannot work fulltime or is prevented from performing one or more important daily duties of his or her occupation, but is not considered totally disabled under the policy. Participating insurance. A type of insurance policy that pays the policyholder a share of the insurance company's earnings, or dividends. (See "Policyholder dividends".) Pension plan. A workplace savings plan that provides a monthly income to you after retirement. Depending on the specific plan, you and your employer may contribute to the plan. Permanent life insurance. A type of life insurance that provides coverage for the lifetime of the person insured, provided the required premiums are paid. Permanent life insurance usually has a cash value. Whole life, Term to 100 and Universal Life are examples of this type of insurance. Plan member. The person insured under a group insurance or group benefit policy (for example, an employee, union member or association member). The member's spouse and dependents are not considered members. Plan sponsor. The owner of a group insurance or group benefit policy. It can be any organization that provides group benefits to its members, for example an employer, union or association. Policy (Contract). The legal agreement between you and your insurance company that sets out the terms of your insurance coverage. Policy loan. A loan made by a life insurance company to a policyholder based on the policy's cash value. A policy loan reduces the cash value and the insurance company usually charges interest. Policy reserves. The pool of funds that an insurance company keeps specifically to meet its policy obligations. The law requires insurance companies to keep sufficient reserves to pay all future claims. Policyholder. The person who owns an insurance policy. Policyholder dividend. If you have a participating insurance policy, a policyholder dividend is a payment your insurance company makes to you when the company performs well. Dividends are not guaranteed – they depend on things like the value of claims the company pays, how the company's investments perform and their level of expenses. You can receive dividends in different ways: • cash; • leave them in the policy to accumulate; • use them to pay part of the premiums (thus reducing your insurance cost); or • use them to buy additional insurance. Pooled Registered Pension Plan (PRPP). A defined contribution pension plan designed for smaller workplaces and the self-employed. Your contributions, and any from your employer, are credited to your account. The funds in your account are pooled with other funds in the plan to achieve lower investment management and administrative costs. The plans are run by organizations that are licensed to administer the plan. Pre-determination of benefits. A claim procedure required by many group plans. For large expenses, such as major dental work, your plan may require you to obtain and submit an estimate of the costs so your insurer can determine what portion of the costs your plan will cover (called a pre- determination of benefits) before you receive treatment. You can then budget for the expense knowing how much your plan will pay and how much you'll have to pay. You may be able to cover some of your costs under your spouse's or partner's plan. Pre-existing condition. A medical condition for which you've had symptoms, consulted a medical professional or received treatment before you apply for insurance or before your coverage takes effect. Some types of insurance have pre-existing condition clauses which may limit or exclude benefits if you make a claim related to that condition. Premium. The amount you pay to buy insurance. The premium is usually paid monthly, quarterly or annually. The amount of your premium may change over time. Premium offset. A payment arrangement where the insurance company uses policy dividends or cash value to pay for premiums. R Rated policy. An insurance policy where the insured person does not meet the company's standard insurance requirements (for example, because of a risky occupation). The policy has higher risks and therefore higher premiums. Reduced paid-up insurance. A form of paid-up life insurance available as a non- forfeiture option. The policy continues, but for a reduced amount. (See "Non-forfeiture options".) Registered Education Savings Plan (RESP). A type of savings plan for your own, your child's or your grandchild's college or university education. No tax- deduction is provided for contributions. Payouts from the plan to the student are not taxed. Registered Pension Plan (RPP). A workplace savings plan that provides a monthly income to you after retirement. Depending on the specific plan, you and your employer may contribute to the plan. Pension plans are subject to regulation by the Canada Revenue Agency, and such plans are called "Registered Pension Plans". Registered Retirement Income Fund (RRIF). A type of plan that provides a predictable - but not guaranteed - retirement income, starting at a set age (currently 72). Most people transfer their "Registered Retirement Savings Plan" savings into RRIFs or annuities. (See "Locked-in Retirement income fund".) Registered Retirement Savings Plan (RRSP). A type of retirement savings plan. The amount you can contribute to an RRSP is based on your income and is set by the federal government. The amount you contribute reduces the income tax you pay at the time, but you generally pay tax on any money you withdraw from the account. Reinsurance. An agreement between insurance companies to share insurance risk. One company transfers some of its insurance risk to another company, known as the reinsurer. Reinsurance is one way your insurance company manages the risks it takes on. Reinstating a policy. You may apply to restart your insurance coverage if it ended because you did not pay your premiums. This process is called reinstating your policy. To do so you must apply within two years of the date the required premiums were not paid. You must also provide evidence of insurability and pay any outstanding costs, plus interest.