Jargon Buster

Payment Protection Insurance and Mortgage Payment Protection Insurance

ASU

Accident, Sickness (Disability) & Unemployment Insurance

AS

Accident & Sickness (Disability) Insurance

Benefit Period

The number of months you will receive monthly benefit payments for an individual claim period as shown on your schedule.

Benefits Office

An Employment Service Job Centre (or the equivalent) in the United Kingdom.

Business

A Company, Profession, Trade or Industry which is registered in the United Kingdom.

Carers Allowance

A state benefit paid to you if you look after a severely disabled person.

Chronic Condition

A condition requiring treatment that occurs before the start date that cannot be cured or eradicated, or which continues indefinitely.

Condition

Any illness, injury, disease or sickness, including any related illness, injury, disease or sickness.

Consultant

A suitably qualified medical specialist who is a member of the Royal College of Surgeons, the Royal College of Physicians or any other Royal College of medical practitioners and who is not you or one of your family.

Director

You own more than 20% of the issued share capital of the business you work for.

Disability

You are disabled and currently under the care and attendance of a doctor or consultant.

Disabled

You have a condition that stops you from doing your normal work (or any other job you are reasonably able to do base on your experience, education or training) that is confirmed by a doctor or consultant.

Doctor

A doctor of medicine recognised by the General Medical Council who works in the United Kingdom and who is not you or one of your family.

Employed or Employment

Your work is permanent and your employer deducts PAYE tax and National Insurance contributions from your gross income or you work under a fixed term contract or sub-contracting basis where your only income derives from that contract.

Existing Borrower

Your mortgage, rental agreement or loan has been in force for longer than one month on the start date of your policy.

Family

Your husband, wife, partner of either sex that you live with or a relative of you or your husband, wife or partner.

Fixed Term Contract

A formal written contract with a business for a specified period of time.

Home Insurance Payment

Your monthly premium (or monthly equivalent of your annual premium)paid for the buildings and/or contents insurance on your private residential property.

Initial Exclusion Period

A period of time immediately after the start date when a claim cannot be made.

Lender

The financial company that grants you a mortgage or a loan.

Life Cover Payment

Your monthly premium paid for the life policy or savings plan that protects or will pay off your mortgage or loan.

Loan

A secured or unsecured borrowing agreement you have taken out with a lender for any purpose other than a property purchase.

Loan Payment

The normal monthly repayment you make to your lender for your loan.

Monthly Benefit

The total amount of monthly cover you have insured under this policy and the most we pay in the event of a claim(except for split cover where we pay a proportion of this amount) as shown on your schedule.

Mortgage

The secured borrowing agreement you have taken out with a lender to buy the private residential property you live in.

Mortgage Payment

The normal monthly payment you make to your lender for your mortgage (excluding voluntary overpayments).

MPPI

Mortgage Payment Protection Insurance.

Normal Income

Either of the following:

  • If you are employed the average of the amounts shown on your payslips from your employer during the last 12 months; or
  • If you are self employed the monthly average of the income you declared to the Inland Revenue for the previous tax year.

Normal Pregnancy

Symptoms which normally accompany a pregnancy (including multiple pregnancy) and which are generally minor and/or of a temporary nature (such as morning sickness or fatigue) which do not represent a medical hazard to you or your baby. A combination of minor symptoms of childbirth (including caesarean section or other medically or surgically assisted delivery which does not cause medical complications.

Payment Instead of Notice

Either of the following;

  • Any payment you receive that relates to the notice period you should have served under your contract of employment ;or
  • If you accept a compromise payment for loss of office the period of notice you were entitled to under your contract of employment.

PPI

Payment Protection Insurance.

Pre-existing Condition

Any medical condition which:

  • You knew about or should reasonably have known about at the start date ;or
  • You had seen or arranged to see a doctor or consultant about during the 12 months immediately before the start date (including any visits to monitor the condition).

Premium

The monthly amount you pay for your cover under this policy.

Proposal

The application form you completed and any other information you have given to us including information provided in writing, verbally or electronically.

Proprietor

You own , alone or with others (except shareholdings), the business that you work for.

Qualification Period

The period of time that you need to be unemployed or disabled before you qualify for claim payments.

Relative

A brother, sister or lineal descendant.

Rental Agreement

The agreement you have taken out to rent the private residential property you live in (including any secondary agreement under a shared ownership scheme).

Rental Payment

The normal monthly repayment you make on your rental agreement.

Self employed or Self Employment

You are classed as Schedule D for income tax purposes and you are required to make Class 2 National Insurance contributions or either of the following applies:

  • You are a proprietor or a director ;or
  • You are a relative of either a proprietor or director who works in the same business as you.

Single Cover

You are the only person shown on the schedule insured for the whole monthly benefit.

Split Cover

There are two people named on the schedule both insured for a proportion of the benefit.

Start Date

The date your cover begins as shown on your schedule.

Stopped Trading

The business has ceased trading permanently, been wound up or handed over to a registered insolvency practitioner or, in the case of a partnership has been dissolved permanently.

Treatment

Advice, examinations, consultations, medications or long term monitoring by a doctor or consultant.

Type of Cover

One of the following:

  • Unemployment and disability cover;
  • Unemployment only cover; or
  • Disability only cover

Unemployed

You are entirely out of work because of one of the following:

  • If you are employed your employer has totally and permanently terminated your job because of circumstances beyond your control;
  • If you are self employed the business you work for has totally and permanently stopped trading because of circumstances beyond the control of you or any co-director or partner in the business; or
  • You have had to stop working to become a full time carer for a member of your family and receive a carers allowance.

Unemployment

You are unemployed and you are not receiving any form of payment or reward from your previous employment or self employment.

United Kingdom

England, Scotland, Wales, Northern Ireland, Isle of Man and the Channel Islands.