An A to Z of commonly used terms to help you understand better our Life Cover.

Beneficiary

If the policy is written under trust, then this is the person who the payout will be made to when you die. If not written under trust, then the proceeds will pass to your estate.

Claim

This is made when a life assured dies. Successful claims will result in a one-off cash payment. A claim can also be made if someone is suffering from a terminal illness: in this circumstance the person will make the claim themselves. Finally, a claim can be made for Waiver of Premium.

Cover

Another word for policy.

Decreasing Term Assurance

Life Assurance for a fixed period of time, where the amount you’re insured for decreases each year. The cash sum reduces over the cover term, normally in line with the amount outstanding on your mortgage. The plan will never have a cash-in value.

FSA

This stands for the Financial Services Authority, which is the independent financial services regulator in the UK.

Insurable Interest

This is something that must exist for all life assurance policies. For joint life policies this will always be the case when the two lives assured are a married couple, registered civil partners or a couple living together with joint financial commitments. For other joint life situations, there will only be an insurable interest if it can be shown that each life assured would suffer financially on the death of the other.

Level Term Assurance

Life assurance for a fixed period of time. The amount you’re insured for remains constant throughout the term. At the end of the term the policy will end. The plan will never have a cash-in value.

Life Assured

The person(s) whose life(s) are covered by the policy.

Medical evidence

This may be required from your doctor/GP to work out the cost of cover. This could mean an examination, tests or providing details of your medical history. We would only request this with your permission and we’ll cover the cost of obtaining it.

Policy Owner

The owner of the life assurance policy. It is generally the life assured.

Premium

The amount you pay each month by direct debit.

Sum assured

The amount you choose to be covered for.

Single / Joint Cover

The lives to be assured must have a legal or financial interest in each other.

 For example:

• Married couple or registered civil partners
• Cohabiting couples with joint financial holdings or joint dependents (eg children)
• Two closely related adults (ie a parent and an adult child, or brother and sister) with joint financial holdings or commitments. Related adults would also include adopted and step relationships
• Individuals who are cohabiting in same sex relationships, providing there are joint financial commitments or holdings

Underwriting

This is the process that assesses the risk of a claim being made. This is done by looking at the information you provide in the application form, along with other evidence such as a medical report from your doctor or a medical examination.

Term

The period of time you're covered for.

Terminal illness

This is defined as an advanced or rapidly progressing incurable illness where, in the opinion of a Consultant and our Chief Medical Officer, life expectancy is no greater than 12 months. This is automatically included during the period of cover (excluding the last 18 months) but you must tell us about it within three months.

Waiver of Premium

If you choose this option, for an extra cost we’ll pay your premiums for you if illness or accident stops you from working for more than six months. This will continue until you return to work or the cover ends.

John Lewis Life Cover is provided by Friends Life Limited - please read Important information (PDF). Once your policy begins you may receive documents and correspondence from Friends Life. These will always be relevant to your application or policy and will never be unsolicited.