CLHIA-ACCAP

40 account things like your salary, how long you were a member of the plan and how much you and your employer contributed to the pension plan. Defined contribution pension plan. A workplace pension plan where the amount you contribute is fixed but the benefit amount you receive on retirement is not. Your benefits are based on the amount you and your employer have contributed, plus investment earnings. Dental insurance. A type of insurance that provides coverage for dental expenses. It's usually provided as part of a group plan, but you can also buy it on its own. Disability income insurance. A type of insurance that makes regular payments (usually monthly) to replace income if you become disabled and unable to work. It's usually provided as part of a group plan, but you can also buy it on its own. Dividend. See "Policyholder dividend". Double indemnity. See "Accidental death insurance". E Eligibility period. The length of time you must be a member of a group before qualifying for coverage under the group plan. For example, an organization whose health and dental plan has a 90-day eligibility period would require 90 days of qualified employment before coverage could begin. Eligible expenses. Expenses that are covered under a health or dental plan. Depending on the coverage provided, you may have to pay a share of the expenses. (See "Deductible" and "Coinsurance".) Elimination period. In disability insurance, you have to be continuously disabled for a certain amount of time before making a claim. This amount of time is the elimination period (sometimes referred to as a "waiting period"). You won't receive benefits for the elimination period. Endowment insurance. A type of life insurance that pays you a set amount if you live to the maturity date of your policy. If you die before that date, your insurance company pays the set amount to your beneficiary. Evidence of insurability. The information an insurance company uses to decide whether or not to insure you. It's often called "proof of good health". The information may include medical, lifestyle, smoking and other personal information. Exclusions. Things that are not covered by an insurance policy. They can include: certain medical conditions you had before you applied for the insurance, or high- risk activities such as sky-diving. You can sometimes buy extra insurance to pay for risks that wouldn't otherwise be covered. Exempt policy. A life insurance policy where the savings growth doesn't exceed limits set under income tax law. In an exempt policy, the savings growth isn't subject to annual taxation. Extended health care insurance. A type of insurance that pays for hospital and medical expenses not covered by your provincial health plan. It can be part of a group plan or you can buy it on its own. Extended term insurance. An option in a permanent life insurance policy that allows you to extend the period you're covered without having to pay additional premiums. It uses the cash value in your policy but your insurance coverage stays the same. How long the policy continues depends on how much cash value is available. (See "Non-forfeiture options".) F Face amount. Also called the "sum insured", the face amount is the amount stated on your policy that your insurance company guarantees to pay when the insured person dies. It doesn't include amounts payable under accidental death coverage or other special provisions. Financial needs analysis. When you buy insurance, an advisor may help you decide how much insurance you need by completing a financial needs analysis. This looks at your current financial and personal situation and goals to help decide how much insurance you need. It can include things like taking care of dependents and paying off loans. Flexible premium policy or annuity. A type of life insurance policy or annuity contract where you can vary the amount of your premium payments and when you make them. For example, you can pay premiums for six months and then stop paying them for the next six months. There may be minimums and maximums that apply to your payments. Fraternal society/Fraternal benefit society. A not-for-profit organization that operates for fraternal, benevolent or religious purposes, including providing insurance to its members and their families. G Grace period. A period in which an insurance policy is effective even though the premium is past due. Group annuity. A workplace savings plan that provides a regular income, typically at retirement. Pension plans and

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