ASISA: Resource for policyholders stumped by life insurance terminology

If the terminology in your long-term life insurance policy contract has left you confused, help is at hand. The Association for Savings and Investment South Africa (ASISA) maintains a comprehensive jargon buster on its web site, designed to make definitions and explanations contained in life insurance contracts and marketing material easier to understand.

Peter Dempsey, deputy CEO of ASISA, says many consumers and intermediaries may not be aware of the jargon buster, which has been in existence for almost four years.

“The jargon buster is updated and expanded on a continuous basis, because we recognise that there is a need for a simple and consistent reference resource.”

Dempsey says the jargon buster, produced by a team consisting of the life industry’s medical insurance professionals, simplifies many of the terms used by the industry and is aimed at both intermediaries and consumers.

“With access to detailed explanations of the life industry’s most common terminology, intermediaries and consumers are better equipped to ask more informed questions and therefore make more informed decisions.”

The jargon buster explains, for example, the differences between accelerator rider benefits and stand-alone benefits and also covers the pros and cons of the two different types of cover.

Other examples of long-term life insurance practices and terminology explained by the jargon buster include:

• Waiting periods
• Risk rating factors when underwriting
• Premium patterns and cover growth
• Different types of benefits

The jargon buster can be found in the Info Centre section at http://www.asisa.org.za/.