At Royal London, we believe protecting you and your family is important – it’s one of the reasons we’re here. We want to make it as easy as possible for you to understand what it is we offer, what you’re buying and what you’re covered for. We never want you to think you’re covered when you’re not. So we avoid using industry jargon and complicated terms.
Sometimes there are terms we have to use that aren’t very ‘everyday’ – because they might form part of the contract we have with you, or because they’re medical or legal terms where the exact wording has to be used. Every time we use these words or terms, we’ll explain them as clearly as we can. For those times where we need to go into detail to explain something, we’ve written this A-Z of terms we use and what they mean.
If you read this and still don’t understand the term, contact us so we can fix it.
This refers to business protection cover that you buy through your financial adviser. Because you can choose a combination of different types of cover, like life cover and critical illness cover, for different amounts and different terms, we call it a menu.
When we talk about children as part of our Children's Critical Illness Cover, we mean your own children up to age 21, any you've adopted or any child who lives with you and you look after financially.
When we talk about critical illness we mean the list of illnesses that are part of your plan. On the list might be illnesses such as heart attack, cancer and stroke.
This covers you if you become critically ill. When we talk about being critically ill this means you've one of the illnesses from the list that’s part of your plan.
On the list will be illnesses such as heart attack, cancer and stroke. When you take out a plan we'll give you a list of the illnesses and an explanation or definition of what we mean for each.
For example, our cancer cover tells you that it 'excludes less advanced cases'. If you make a claim on your cover then we'll check that your illness meets our definition and then we'll pay out.
This is life cover your employer might provide if you die while working for them. Typically, the amount of cover is a multiple of your earnings. For example, if it's four times your annual salary and you earn £25,000, your death-in-service benefit would be £100,000 (4 x £25,000).
This is life insurance where the amount of cover reduces over the term of your plan. This is normally used to protect your mortgage or a loan, so your cover will reduce in a similar way to the outstanding amount of your mortgage.
When you think about taking out Income Protection and Waiver of Premium, we'll ask you how much time you'd like to leave between stopping work and getting your first payment, if you were to claim.
For example, this could be anywhere from 4, 8, 13, 26 or 52 weeks. You can choose which one best suits, taking account of the sick pay arrangements you have with your employer.
When you take out a plan with us we give you terms and conditions. An endorsement is a document that changes these after your plan has started. For example, you take out Critical Illness Cover and your plan has 10 illness definitions. We decide to give you an extra five illness definitions. We then send you a letter telling you this - the letter is now part of your terms and conditions. This is what we call an endorsement.
The everyday tasks are:
- Sitting - sit in a chair for at least 30 minutes without unreasonable discomfort.
- Standing - stand and perform light tasks such as making a cup of tea, using one hand for support, for a period of at least 5 minutes.
- Walking - the ability to walk more than 200 metres on a level surface.
- Climbing - the ability to climb up a flight of 12 stairs and down again, using the handrail if needed.
- Lifting - the ability to pick up an object weighing 2kg at table height and hold for 60 seconds before replacing the object on the table.
- Bending - the ability to bend or kneel to touch the floor and straighten up again.
- Getting in and out of the car - the ability to get into a standard saloon car, and out again.
- Maintaining an ordinary UK driving licence - reasonable medical opinion prevents the person covered obtaining an ordinary UK driving licence.
- Writing - the manual dexterity to write legibly using a pen or pencil, or type using a desk top personal computer keyboard.
Helping Hand is a support service that comes with all our menu plans. It gives you access to a dedicated nurse who can provide personal support during difficult times. For example, following a cancer diagnosis, a dedicated nurse can help you understand it and arrange a second medical opinion or complementary therapies.
This is a definition that will be explained when you want to take out Income Protection and Waiver of Premium Cover. If you are ill or injured and want to claim under one of these covers, you'll need to meet the incapacitated definition.
This cover pays you an income if you can’t work because of illness or injury. If you make a claim we'll check your illness or injury meets our definition of incapacitated (see above) and then we'll pay out.
This cover is a lump sum of money that increases over the life of your plan.
This type of cover increases over the life of your plan. You decide at the start the length of time you want your cover to last – this is often called the term of your plan.
This cover is a monthly income that will go up over the life of your plan.
This cover is a fixed lump sum of money.
This cover is a fixed monthly income that doesn’t increase.
This is cover that will pay out if you die or, with some plans, if you're diagnosed with a terminal illness. See below for information on what terminal illness means.
This is cover that will pay out if you die or you're diagnosed with a critical illness, terminal illness or total permanent disability. It will only pay out once and then the cover will stop (critical illness, terminal illness and total permanent disability are defined elsewhere in this jargon buster).
The six living tasks are:
- Washing – the ability to wash in the bath or shower (including getting into and out of the bath or shower) or wash satisfactorily by other means.
- Getting dressed and undressed – the ability to put on, take off, secure and unfasten all garments and, if needed, any braces, artificial limbs or other surgical appliances.
- Feeding yourself – the ability to feed yourself when food has been prepared and made available.
- Maintaining personal hygiene – the ability to maintain a satisfactory level of personal hygiene by using the toilet or otherwise managing bowel and bladder function.
- Getting between rooms – the ability to get from room to room on a level floor.
- Getting in and out of bed – the ability to get out of bed into an upright chair or wheelchair and back again.
When we talk about your occupation we mean the trade, profession or type of work you do. It’s not a specific job with any particular employer.
When we say partner we mean your husband, wife or common-law spouse or partner.
This term refers to our collection of personal protection cover that you can buy through your financial adviser. Because you can choose a combination of cover, like life cover and critical illness cover, for different amounts and different terms, we call it a menu.
That's us - The Royal London Mutual Insurance Society Limited. We’re the UK's largest mutual life, investment and pensions company.
This is how long your cover lasts. This could be the same length of time as your mortgage lasts. For example, 25 years.
This is the definition of terminal illness that we use for our insurance policies:
A definite diagnosis by your attending consultant of an illness where:
- there’s no known cure or it’s progressed to the point where it can’t be cured, and
- in the opinion of the attending consultant, the illness is expected to lead to death within 12 months.
Your doctor or hospital consultant will give us information about whether you meet this definition. This type of cover is normally included with life cover, and some critical illness cover.
If we pay a claim and you survive longer than 12 months, you won’t be asked to repay the money.
Your plan may include cover for total permanent disability. This pays out if you become disabled and are no longer able to do certain things. There are different definitions. We’ll tell you which applies to you when you take out your plan. The definition we give will depend on your health and occupation. Here are some of the definitions:
- Own occupation which means you won’t be able to go back to work permanently. We use this definition until you reach age 65.
- Working tasks which means you are unable to do three of our working tasks ever again. We use this definition until you reach age 65.
- Living tasks which means you are unable to do three of our living tasks ever again.
See above and below for our definitions of working and living tasks.
A trust is a legal arrangement that could be set up with your plan. This will change who owns your plan and who gets the payout if there's a claim. You can do this to make sure your plan will pay out more quickly or so that it could be free of inheritance tax.
This covers your premiums should you become ill or injured and meet our definition of incapacitated. Or if you're diagnosed with a terminal illness that meets our definition.
Our six working tasks are:
- Walking – the ability to walk more than 200 metres on a level surface.
- Climbing – the ability to climb up a flight of 12 stairs and down again, using the handrail if needed.
- Lifting – the ability to pick up an object weighing 2kg at table height and hold for 60 seconds before replacing the object on the table.
- Bending – the ability to bend or kneel to touch the floor and straighten up again.
- Getting in and out of a car – the ability to get into a standard saloon car, and out again.
- Writing – the manual dexterity to write legibly using a pen or pencil, or type using a desktop personal computer keyboard.