Plain-English definitions of the insurance terms you'll come across in Canada, from beneficiaries to whole life policies.
The basic ideas behind how insurance works.
The people and paperwork involved in an insurance policy.
The main kinds of insurance coverage available in Canada.
Terms about lifelong coverage and policies that build cash value.
How insurers assess and approve an application.
How insurance premiums are calculated and paid.
Terms about who owns a policy and who receives the payout.
Add-ons that extend or customise a policy.
Coverage that pays a lump sum after a serious illness diagnosis.
Coverage that replaces income if you can't work due to illness or injury.
Insurance and benefits provided through an employer.
The rules and protections for insurance customers in Canada.
Absolute assignment is the permanent transfer of all ownership rights in a life insurance policy from the original policyholder to another person or organization. In Canada, this means the new owner gains control over the policy, including the ability to manage its benefits, change beneficiaries where permitted, or surrender the policy.
An accelerated death benefit rider is a life insurance feature that allows policyholders to receive part of their death benefit while they are still alive if they develop a qualifying serious illness, usually a terminal illness.
Accelerated underwriting is a streamlined life insurance application process that allows eligible Canadians to obtain coverage faster, often without undergoing traditional medical exams or blood tests.
Accidental death and dismemberment insurance (AD&D) is a type of insurance that provides financial compensation if an insured person dies or suffers a qualifying serious injury because of an accident.
An accidental death benefit rider is an optional life insurance feature that provides an additional payment to your beneficiaries if you die as a direct result of a covered accident.
Accidental death insurance is a type of insurance that provides a lump-sum payment to your beneficiaries if you die as a result of a covered accident.
Accident-only disability insurance is a type of insurance that provides income replacement benefits if an accidental injury prevents you from working. Unlike comprehensive disability insurance, it does not cover disabilities caused by illnesses or diseases.
An accumulating fund is the savings or investment component of certain permanent life insurance policies, particularly universal life insurance. It represents money that builds up within the policy over time after applicable insurance costs and fees.
Adjusted cost basis (ACB) is the amount used to calculate the taxable gain when a Canadian life insurance policyholder withdraws money, surrenders a policy, or completes certain other transactions involving their policy.
Adverse selection occurs when people who are more likely to make insurance claims are also more likely to purchase coverage, particularly when insurers have limited information about their risks.
Advisor disclosure is the process by which an insurance advisor provides clients with important information about their qualifications, compensation, business relationships, and potential conflicts of interest.
Age last birthday is an insurance pricing method that calculates your age based on your most recent birthday. It represents your actual age in completed years rather than your age at your next birthday.
Age nearest birthday is an insurance pricing method that calculates your age based on whichever birthday is closest to the date your policy takes effect, whether it is your last birthday or your upcoming one.
An insurance agent is a licensed professional who represents one or more insurance companies and helps customers purchase insurance coverage.
Alzheimer's disease is a progressive brain condition that damages nerve cells, gradually affecting memory, thinking, behaviour, and the ability to perform everyday activities.
An annual premium is the amount you pay to an insurance company once a year to maintain your insurance coverage.
Annual renewable term insurance is a type of life insurance that provides coverage for one year at a time, with the option to renew annually without undergoing another medical examination.
Anti-money laundering (AML) refers to the laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained money as legitimate funds.
