Life Insurance Glossary – T to Z

T

Tax Deductible

Refers to an expense that can be offset against taxable income, e.g. income protection premiums. – Website www.ato.gov.au

Term Insurance

Another expression for Life insurance

Terminal Illness

The diagnosis of the life insured of an illness which in the opinion of an appropriate specialist physician is likely to result in the death within 12 months of the diagnosis regardless of any treatment.

TFN

Abbreviation for tax file number – Website www.ato.gov.au

Total and Permanent Disablement

Pays a lump sum benefit in the event that you are totally and permanently disabled as defined by your insurer

Trauma Insurance

Pays a lump sum benefit in the event that you suffer a trauma event such as a heart attack, or cancer as defined by your insurer

Trustee

The legal owner of trust property. A Trustee maybe a company or one or more individuals.

U

Underwriter

An insurance professional who determines the level of risk associated with a proposal and determines whether that risk will be accepted or not by the insurer.

Underwriting

The process whereby an underwriter determines and assesses risk.

Utmost Good Faith

An essential element of an insurance contract where the insured and the insurer enter into a contract where each party has an obligation to act with the best intentions towards the other.

W

Waiting Period

The first part of a period of disability, for which no benefit is payable (commonly 14, 30, 60 or 90 days but can be up to 2 years)

Whole of Life Policy

A policy which provides a benefit at 95 or death of the insured whichever is prior.

Will

A will is a legal declaration by which a person, the testator, names one or more persons to manage their estate and provides for the transfer of their property at death.