Issue link: http://clhia.uberflip.com/i/369328
35 Renewable term insurance. A type of term life insurance that can be renewed at the end of the term, either automatically or at the policyholder's option, without evidence of insurability. The amount you pay for the insurance (the "premium") is usually fixed and guaranteed not to change for the length of the term. When the insurance renews, the premium increases, based on your age. Replacement. The act of replacing an existing insurance policy with another policy. Since this means that the first policy is cancelled, the insurance company usually requires a written statement showing you understand the seriousness of making this change. Rescission right. The policyholder's right to cancel a policy within a set period of time and get a refund of any premiums paid. This "free look" period allows you to review the policy and ensure it meets your needs. Revocable beneficiary. A type of beneficiary designation. You can change a revocable beneficiary at any time. Rider. A change or addition to an insurance policy that either expands or limits the coverage and benefits. Risk. The likelihood that an insured event will happen while the policy is in place. For example, in life and health insurance, risk is typically the likelihood that the person insured will die, be injured or get sick. S Segregated fund. A pool of investments held by the life insurance company and managed separately (i.e., segregated) from its other investments. If you buy a variable insurance contract, sometimes called a segregated fund policy, the value of your policy varies according to the market value of the assets in the segregated funds. (See "individual variable insurance contract" and "Variable insurance contract".) Settlement options. The choices a beneficiary or policyholder may have for receiving payment of life insurance benefits, other than an immediate cash payment. For example, the beneficiary may choose to receive the benefit in the form of an annuity. Short-term disability insurance. A type of insurance that replaces income for a short period of time when a person becomes disabled and is unable to work. If the disability continues, the person may be eligible for long-term disability benefits, if they have that coverage. Standard or statutory provisions. The provisions in an insurance policy setting out certain rights and obligations that you and the insurance company have. These are required by provincial insurance laws. Standard risk. A person who qualifies to buy insurance at the company's regular premium rates. (See "Rated policy" and "impaired risk".) Stock insurance company. An insurance company that is listed on a stock exchange. The company's shares (or stocks) are owned by the shareholders. Substandard risk. See "impaired risk". Suicide clause. A provision in a life insurance policy stating that benefits will not be paid if the person insured commits suicide or dies as a result of self-inflicted injuries. Sum insured. See "face amount". Supplementary health insurance. See "Extended health care insurance". Surrendered policy. A policy you've asked your insurance company to cancel. If your policy has a cash value, you receive this amount when you cancel your policy. T Term life insurance. A type of life insurance that provides coverage for a set period of time. The period (or term) of the coverage can be either a fixed number of years or to a set age (e.g., age 65). (See "Renewable term insurance".) Term to 100. A type of permanent life insurance that provides coverage for your lifetime, as long as you pay the required premiums. The premium amount stays the same and you stop paying premiums after age 100. Typically, the policy has little or no cash value. Travel insurance. Insurance designed to pay for certain unexpected costs that may arise when you are travelling outside your home province or Canada. These costs may include emergency hospital and medical costs, trip cancellation and lost baggage. Some travel insurance coverage includes an accidental death benefit. Tax-Free Savings Account (TFSA). A registered account you use to save money for any purpose. You do not get a tax deduction when you contribute to the plan. Investment earnings in the account are tax free and you don't pay taxes when you withdraw money. U Underwriting. The process an insurance company goes through to decide whether or not to insure someone. Uninsured plan. See "Administrative Services only (ASo) Plan". Universal life. A type of permanent life insurance with flexible premium payments. It consists of two parts: life insurance and an investment account. You pay money into the investment account. The insurer takes premiums and other expenses from the account and pays any investment income into the account. You can increase or decrease your premiums and your death benefit within certain limitations. Earnings on the investment account may or may not be guaranteed depending on the type of investment chosen. V Variable insurance contract. A life insurance or annuity contract where benefits are not fixed but vary with the market value of a specified group of assets in which the premiums have been invested. (See "individual variable insurance contract". Also see "Group annuity", which may be a variable insurance contract.) W Waiver of premium. A feature of some insurance policies that allows you to stop paying the premiums if you become disabled. Whole life insurance. A type of permanent life insurance that provides coverage for your lifetime. It has fixed premiums, builds up a cash value, and has features that help keep your coverage in place if you can't pay the premiums. (See "Non-forfeiture options".)