CLHIA-ACCAP

38 A Accident and sickness insurance. A type of insurance that makes a payment if you have an illness, are injured or die from an accident. It includes disability income insurance and accidental death and dismemberment insurance. Accidental death and dismem- berment insurance. A type of insurance that makes a payment if you die from an accident or lose full or partial use of a limb, hear- ing or eyesight. You can buy this type of insurance on its own or add it to a life insurance policy. Accidental death insurance. A type of insurance that makes a payment if you die from an accident. You can buy accidental death insurance on its own or add it to a life insurance policy. If you add it to a life insurance policy and die from an accident, your insurance company pays both the life insurance amount and the accidental death insurance amount. When the amount of the accidental death insurance is equal to the amount of the life insurance, the amount payable is double the original amount of the life insurance policy, and is known as "double indemnity". Actuary. A person professionally trained in calculating the risks and costs of insurance. Adjustable policy. A type of insurance policy that allows the insurance company to make changes to the policy under certain conditions. Changes can include the amount of insurance, the premiums charged and the cash value. Details of how the insurance company can make changes are listed in the policy. Administrative Services Only (ASO) Plan. A type of group plan where the benefits are not insured. The plan sponsor (usually an employer) hires an outside firm (often a life and health insurance company) to administer their plan. The plan sponsor is responsible for providing the funds to pay claims. Advisor. A person who is licensed by a provincial or territorial regulator to sell life insurance, accident and sickness insurance, group insurance and annuities, including segregated funds. Also called an agent or a broker. Agent. See "Advisor". Annuitant. The person who receives payments from an annuity. It can also refer to the person on whose life the payments are based or the policyholder. Annuity. A contract that pays you income at regular intervals, typically monthly, in exchange for an upfront payment. The income can start right away, or in the future. Annuities are used to provide retirement income. When offered by an insurer, annuity contracts can be registered as RRSPs, RRIFs, TFSAs, etc., as well as offered through group retirement and savings plans. The different types of annuities include: ■ ■ a life annuity, which makes payments for as long as you live. A joint life annuity could make payments for as long as either you or your spouse lives. ■ ■ an annuity certain, which makes payments for a specified number of years or to a specified age, regardless of whether you are alive throughout that period, ■ ■ some combination of both. Application. An application is a formal request for insurance coverage. It provides information about you and the type and amount of insurance you want. The information you give the insurance company helps them decide if you meet their requirements and qualify for the insurance. In some cases, you have to answer a series of health questions. You may also have to undergo basic medical tests as part of your application. Automatic premium loan. A feature in a permanent life insurance policy that allows the insurance company to pay for overdue premiums by taking a loan against the policy (as long as it has a cash value). Paying for overdue premiums in this way prevents your policy from being cancelled (or lapsing). (See "Non- forfeiture options".) B Beneficiary. The person you name to receive the payment from your insurance policy. In the case of life insurance, if you don't name a beneficiary, the payment goes to your estate. Benefit. The payment an insurance company makes when they approve an insurance claim. Broker. See "Advisor". C Cash surrender value. The amount your insurance company pays you when you cancel a permanent life insurance policy that has built up a cash value. The insurance company deducts any policy loans or overdue premiums from the cash surrender value before paying you. (See "Cash value".) Cash value. The cash amount that builds up in a permanent life insurance policy. You can take a loan against the cash value of your policy. If you cancel your policy, you get the cash value. Whole life, variable life and universal Glossary of Insurance Terms

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