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Protection Insurance Jargon Buster

Insurance is full of jargon. Here is a plain-English guide to every term you might encounter.

7 min read Published March 2026

A–Z of Insurance Terms

TermMeaning
Accelerated benefitCIC payout that reduces your life cover
BeneficiaryPerson who receives the payout
Decreasing termCover reduces over time (for repayment mortgages)
ExclusionA condition not covered by your policy
Guaranteed premiumsYour premium is fixed forever
IndexationCover increases annually with inflation
LoadingExtra premium for health conditions or risky occupation
Non-disclosureFailing to tell the insurer relevant info – can void your policy
Own occupationIP pays if you cannot do YOUR job (best definition)
Standalone benefitCIC that pays in addition to life cover
Suited occupationIP pays only if you cannot do ANY suited job (worse)
TrustLegal arrangement bypassing probate and potentially avoiding IHT
UnderwritingProcess of assessing your risk to set your premium
Waiver of premiumStops your premiums if you cannot work
Whole of lifeCovers you for your entire life
Key terms: own occupation vs suited occupation (IP), accelerated vs standalone (CIC), and guaranteed vs reviewable premiums.

Frequently Asked Questions

Pays if you can’t do YOUR job. Best definition. Suited occupation is harder to claim.

The ten jargon terms worth knowing before you compare protection insurance

Protection insurance shorthand is easy to get wrong, and the shorthand is the difference between a policy that pays out when you expect it to and one that does not. Here are the ten terms most worth knowing: "sum assured" is the headline cover amount that gets paid; "term" is the number of years the policy runs; "level" means the sum assured does not change; "decreasing" means it reduces in line with a mortgage balance.

"Own occupation" means income protection pays if you cannot do your specific job; "suited" or "any" occupation weaken that test. "Deferred period" is the waiting time before an income protection claim starts paying; longer deferred = cheaper premium. "Waiver of premium" pauses your monthly payment while you are signed off work but keeps the cover in force.

"Indexation" automatically increases your sum assured and premium with inflation each year. "Guaranteed insurability" lets you increase cover without new medical evidence after specified life events (marriage, new child, new mortgage). "Written in trust" means the policy sits in a legal trust so the payout bypasses your estate for inheritance tax and probate purposes.

Quick answers

What is the difference between level and decreasing term?

Level term keeps the sum assured flat for the full term. Decreasing term reduces the sum assured each year in line with a repayment mortgage balance. Decreasing is cheaper but level is more flexible for family cover.

What is a guaranteed premium?

Guaranteed premiums cannot change during the policy term. Reviewable premiums can be increased by the insurer at set review points (typically every 5 years). Always prefer guaranteed for long-term cover.

Do I need an insurance-specific solicitor to put a policy in trust?

No. All UK insurers provide a free standard trust deed and beneficiary nomination form. You complete it yourself, name your trustees (typically your partner plus another adult), and return it to the insurer.

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