A sudden, unexpected, unforeseeable, unavoidable external event that occurs while the policy is in force.

Life insurance that is paid only if the insured's death is as a result of an accident.

Insurance that is paid if the insured dies, loses their sight or suffers the loss of one or more specified body parts as the result of an accident.

Paralysis as a result of an accident.

This is the legal transfer on one person's claim to an insurance policy to another person or entity, such as to a bank, to qualify for a loan.

A federally regulated group of Canadian life and health insurance companies that insure all policy owners who are Canadian residents against financial failure of any members of the group. Assuris will guarantee payment under covered policies up to certain specified limits for policy owners of that company.

Beneficiary is the person who will receive the death benefit (amount of money) of a life insurance policy when the insured person dies. By naming a beneficiary, the money may be protected from creditors. A beneficiary under the age of 18 needs to be represented by a legal individual guardian or a public official who represents minors generally. A policy owner can appoint someone to act as a trustee for a minor in the designation of a beneficiary.

Cash amount available to the owner of a life insurance policy when the policy is voluntarily terminated before the death of the life insured.

Sometimes required by financial lending institutions to ensure the repayment of a business loan in the event of death. Life insurance premiums for this coverage may be tax deductible.

A public conveyance which is licensed to transport passengers: provided and operated:

a) for regular passenger service by land, water or air; and

b) on a regular passenger route with a definite regular schedule of departures and arrivals between established and recognized points of departure and arrival; and

c) under a Common Carrier license at the time of the accident.

A person designated to become the new owner of a life insurance policy if the original owner dies before the policy ends.

Some term life insurance policies offer the opportunity to convert an existing policy to a permanent insurance policy within the specified time period, without providing evidence of insurability.

Also referred to as a premium, it is the amount you will pay for your insurance policy. Premiums often include applicable taxes and policy fees.

The total amount and type of insurance that the insured has.

Length of time the insurance coverage is effective.

Date when the insurance coverage expires.

Date when the insurance coverage is effective. This can also be referred to as effective date or issue date.

The amount of money payable if the insured is diagnosed with a critical illness that is specified in their insurance policy. The policy may require the insured to survive a certain period of time to be eligible for this payment.

A form to be completed by the applicant that confirms their health status at time of application.

The amount of money payable to the beneficiary after the death of the life insured. This amount may be decreased by loans and interest owing or increased by additional benefits payable under specified conditions.

The date on which an insurance policy takes effect.

A statement or proof of physical health and/or other information affecting a person's eligibility for insurance.

Commonly used to refer to the amount of insurance purchased. Also called amount of insurance, coverage amount or sum insured.

Process to review your current financial objectives and situation to help provide guidance on the amount of insurance you require.

Fracture means a break in a bone or cartilage.

Total Fund value is the total amount of all investment accounts held in a universal life policy.

Length of time (usually 30 days) after a premium payment is due and unpaid. During the grace period the policy (including all riders) remains in effect.

Insurance coverage guaranteed for individuals regardless of their health or medical history. Unlike many other types of life insurance, the customer is not required to answer any medical questions or take a medical exam. Insurance protection is guaranteed.

Means being admitted to a hospital as an in-patient for at least twenty-four (24) consecutive hours.

Any sickness, disease or medical disorder.

The minimum period of time for which annuity payments will be made whether the annuitant is alive or not.

A clause in a life insurance policy that lets the life insurance company void the policy for up to two years from when the policy was issued if the life insured failed to disclose important information or misrepresented a material fact that would have prevented the policy from being issued. This limit doesn't apply in cases of fraud.

The life insurance phrase used to describe the status of your policy. If your insurance policy is in force, it means the premium payments have been made and are up-to-date and that you are currently protected.

Bodily harm directly caused by an accident and independent of all other causes. It does not include any sickness, illness, ailment, disease, medical disorders or medical treatments.

A professional who renders insurance advice and services to individuals and businesses. The majority are independent in that they could represent multiple insurance companies. There are, however, some insurance advisors who work exclusively for a single company. An Insurance Advisor/Agent must be licensed in the province in which they conduct business and the province the applicant resides in.

The legal document issued by the insurer to the policy owner that outlines the conditions and terms of the insurance. Also called the policy.

If available in the terms of the policy contract, this is the additional amount calculated at the end of each policy anniversary and deposited to the investment accounts of a Universal life insurance policy.

The date on which an insurance policy is issued.

A life insurance policy that covers two people and provides payment when the first person dies.

A life insurance policy that covers two people and provides payment when both people have died. Generally used to pay estate taxes to protect value for children where there might be substantial capital gains taxes due upon the death of the last parent (also known as joint second-to-die policies).

Refers to the termination of an insurance policy because the premium was not paid within the grace period. It is possible to re-instate the coverage with the same premium and benefits intact, but the life insured will have to re-qualify for this coverage again and pay for all unpaid premiums and interest.

This is a projected period of time a person is expected to live based on factors such as gender and current age of an individual.

Insurance that provides payment to the beneficiary upon the death of the insured.

An insurance policy that covers an insured person's entire lifetime.

An advance cash payment of part of the amount of insurance prior to the death of the insured person for certain conditions as defined in the policy. It provides financial assistance to the insured person while still living.

A will that specifically expresses the author's wishes as they apply to end-of-life decisions.

This is the estimated amount that can be deposited into a Universal life insurance policy on a tax-deferred basis.

This is the total amount (prescribed by law) that can remain within the cash value of the policy.

This is a report on the insurance applicant's health. It is completed by a physician and may be based on a physical examination and questioning of the proposed insured person.

The MIB is a non-profit association of life insurance companies. Its purpose is to detect and deter fraud by providing warnings – called alerts – to member companies. For example, if an insurance applicant advised one insurance company of a heart attack and then applied to another insurance company omitting this history, codes reported by the first insurance company indicating a heart attack would alert the second insurance company to the undisclosed history.

Life insurance designed to pay off the outstanding mortgage balance in the event of the death of the life insured(s).

A discount on the cost of insurance recognizing that non-smokers have a better life expectancy than smokers. This discount applies for new applicants who have been non-smokers for at least 12 months before applying for coverage. This discount may also apply to existing life insurance policies if the insured becomes a non-smoker.

The person who owns the life insurance policy. Usually the same person as the insured but it could be someone else who has the permission of the insured to be the owner, like a spouse, a common-law-spouse, an offspring, a parent, a corporation or a business partner with insurable interest.

A life insurance policy where the coverage is still effective but all required premiums have been paid.

Life insurance where the policy owners share in surplus earnings attributed to that business. Premiums are based on an estimate of future earnings at a somewhat lower level and costs at a somewhat higher level than the company believes most likely will occur. Where a surplus occurs, a "policy dividend" is distributed to the policy owners who have participating policies.

A life insurance policy designed to provide permanent life insurance coverage until your death. Also known as traditional life insurance or whole life insurance.

The legal document issued by the insurer to the policy owner that outlines the conditions and terms of the insurance. Also called the insurance policy.

The date on which an insurance policy takes effect.

12-month period from the issue date of a policy.

A loan made by a life insurance company to a policy owner on the security of the cash surrender value of a policy.

Some insurance companies offer a preferred (lower) cost of insurance for people who can demonstrate a better risk to the insurance company. Usually taken into consideration in conjunction with gender and smoking habits are other health-related factors, such as physical build, lifestyle, occupation, personal and family health history indicating longer life expectancy, can add up to significant cost savings to new life insurance applicants.

The cost of insurance or payment amount required by the insurance company to keep your policy in effect.

This is the provincial premium tax that is collected for a policy as a percentage of each premium or deposit made to an investment account. The amount collected varies by province but currently ranges from 2% to 4%.

A rate class is the classification assigned to the insured person during the underwriting process which determines how much the premium will be. Your rate class is based on a variety of factors covering overall health and lifestyle profile. Typically, individuals who are in good health and who do not use any kind of tobacco products or engage in any hazardous activities will be able to obtain lower cost coverage than individuals who are in poor health or who are smokers.

A policy issued to insure a person classified as having a greater-than-average risk to the insurance company, for example, a person with impaired health or a hazardous occupation. The policy may be issued with special exclusions and/or a cost of insurance that is higher than a regular policy.

Restoration of a lapsed life insurance policy. The life insurance company will require evidence of continuing good health and the payment of all past due premiums plus interest.

The sharing of insurance policies among multiple insurers to reduce the risk for each one.

Additional types of insurance protection that can sometimes be added for a cost to a policy to protect against a variety of other losses.

The side account is used to hold money that exceeds the maximum amount that can be deposited in the tax-exempt investment accounts of a universal life insurance policy.

Insurance policy that pays a benefit in the event of the death of a single person.

A clause in the life insurance policy which specifies that the policy amount will not be paid if the insured takes his or her own life within a specified period of time (usually two years) after the policy is issued.

An amount of money deducted from some life insurance policies when the owner of a policy cancels the policy for its cash surrender value.

Life insurance coverage for a set time period where the insurance company pays a tax-free death benefit (payment) if the insured dies during that period of time. Many term policies are only offered for five, 10 or 20 year periods and can be renewed at the end of the policy, usually at a higher cost.

Underwriting is the process an insurance company uses to review an application for life insurance before accepting and issuing an insurance policy. The purpose of this review is to determine the potential degree of risk that a person represents to the life insurance company.

A risk class designation for applicants whose health profiles render them unsuitable for life insurance purposes.

A permanent life insurance policy that combines the benefits of flexible insurance coverage, flexible premiums and the power of a tax-deferred investment account.

A legal document detailing your preferences after your death, dealing with such matters as how assets are to be distributed , who will be the guardian of your minor children, and other matters.

An amount of cash that a policy owner can elect to take from a universal or whole life insurance policy that may or may not be subject to income tax.

A traditional life insurance policy typically offering guaranteed lifetime coverage with cash surrender values (also known as traditional life insurance or permanent life insurance).