| Term | Definition |
| Annuity | An insurance product type which pays a regular income for the rest of the insured's life. Such products can be used as part of a retirement strategy. |
| Benefit Illustration | A document which shows the benefits, distribution cost which includes remunerations to the distributor, and charges of an insurance policy. For participating insurance policies, the benefits of the investment returns both guaranteed and non-guaranteed are illustrated here as well. |
| Cash Value | Also known as the surrender value, this is the sum of money which the policyholder will receive when he surrenders the insurance policy or upon termination of such policies which has a savings mechanism bundled in it. |
| Claim | A demand made by the insured to the insurance company for payment of the benefits as stated in the insurance policy after such conditions are met. |
| Co-Insurance | This is the percentage of the total amount of hospital expenses to be paid by the insured person after the policy's deductibles are met. The insurance company will then pay the rest of the hospital expenses as covered by the policy. |
| Commission | A remuneration fee, usually a percentage of the policy premium, which is paid to the distributor of the insurance product. Remuneration varies across insurers and policies. |
| Coverage | The protection against insurable risk or liability provided under an insurance policy. |
| CPF DPS | The Dependants Protection Scheme (DPS) is a life insurance scheme which is automatically extended to eligible CPF members. With a maximum sum assured of $46,000 up to 60 years old, the DPS benefit will be paid out to insured members and/or their families upon death or permanent incapacitation of the insured CPF member. |
| CPF LIFE | The CPF Lifelong Income For the Elderly (CPF LIFE) is an annuity scheme that provides the elderly with a lifetime monthly payout starting from current payout eligibility age set at 65. |
Critical Illness Insurance |
Also known as dread disease policy which pays a lump sum amount either when the insured is diagnosed with any of the pre-determined list of illness or after having undergone a type of surgery as covered by the policy. |
| Death Benefit | A lump sum amount that will be paid to the beneficiaries in the event of the insured person's death as stated in the insurance policy. |
| Deductibles | This is an out of pocket expense which the policy holder has to pay before the insurer makes any benefit payment which is usually applicable to hospital/medical bills. |
| Disability | A condition that causes one to be unable to work due to an accident or sickness. |
| Disability Benefit | An added benefit which provides premium waiver or monthly income in the event the insured person becomes disabled. |
Disability Income Insurance |
An insurance product which helps to replace the insured's income partially by paying out a monthly benefit when unable to work due to disability. |
| ElderShield | ElderShield is an affordable severe disability insurance which provides long-term care protection by giving monthly payouts to defray out-of-pocket expenses, especially during old age. Singapore Citizens and Permanent Residents (PRs) with Medisave accounts are automatically covered under ElderShield at the age of 40. ElderShield premiums are determined by the entry age and are level throughout the policy term which are payable using Medisave or cash annually until the age of 65. |
| Endowment Policy | An insurance policy that pays out a death benefit when the insured dies within the policy term or a maturity benefit when the pre-determined period of the policy term expires. |
Financial Adviser (FA) Representative |
A person who is licenced by MAS to carry out advisory services on financial planning matters. |
| Forfeiture | A loss of privileges without any compensation arising from the breach or non-performance of obligations as specified in a legal contract |
| Free Look | A period, usually 14 days, from the receipt of the policy documents during which the policyholder can exercise the rights to cancel the policy and any premiums paid will be refunded less any medical examination fees incurred, which has to be borne by the policyholder. |
| Grace Period | The amount of time, which can be up to a month, after the premium due date whereby the policy still remains in force even though the premium has not been paid for the insurance policy. |
Hospital Cash Insurance |
A benefit that pays a fixed amount of cash each day the insured is hospitalised. Any waiting period before the benefit is paid out or benefit limits and conditions varies across policies |
| Living Benefits | An insurance plan that, together with death benefit, provides financial benefits while the insured is alive and receive payouts from the policy when faced with calamities such as terminal illness, dread diseases, disability or the need for long-term care where applicable as stated in the insurance policy. |
Long-Term Care Insurance |
An insurance plan that provides a monthly benefit for medical or nursing care when the insured is unable to carry out what is known as Activities of Daily Living (ADLs) such as bathing, dressing, feeding, toileting, mobility or transferring. Policy coverage varies on the minimum number of ADLs that the insured needs to be deprived of before any benefits will be paid out. |
| Maturity Date | A fixed date where the insurance policy has come to the end of its term and benefits payout as stipulated in the policy will be done thereafter, if any. |
Medical Expense Insurance |
An insurance policy that provides coverage for medical cost incurred due to treatments received caused by illness or accident. Claimable amounts may be subjected to the policy limits, co-insurance or deductibles. |
| Medisave | A national medical savings scheme which helps individuals save in order to meet their future personal or immediate family's medical expenses or to pay for some health insurance premium subject to limits. |
| MediShield | MediShield is a basic medical insurance scheme to help pay large hospital bills in subsidised wards and for selected outpatient treatments, which covers members up to 92 years of age and excludes pre-existing medical conditions. MediShield (and soon MediShield Life) works best for hospitalisations in subsidised Class B2 or C wards at restructured hospital |
| Non-Forfeiture Values | The built up cash value usually seen in Whole Life policy when the policy is terminated. This can be received as a payout or used to purchase other insurance policies. |
| Non-Participating Policy | An insurance policy that does not share the profits of an insurance fund and its policy holders are not entitled to any such profits. |
| Participating Policy | An insurance policy where part of the premiums are pooled to an insurance fund and invested by the insurer for profits that will be shared with the policyholders. |
| Policy | A legal contract issued by the insurer to the policyholder which contains the details of the insurance coverage and conditions after a proposal has been accepted. |
| Policy Loan | A policyholder in temporary need of cash may apply for a policy loan against the security of the policy. Interest will be charged from the date of the policy loan. |
| Premium | The amount of money charged by the insurer to the policyholder in return for the insurance coverage it provides. |
| Product Summary | A description of the insurance product's features which may include the benefits, fees, eligibility or other relevant information. |
Regular Premium Policy |
An insurance policy in which the premium payments are made in fixed frequencies i.e. monthly, quarterly, semi-annually or annually. |
| Riders | Riders, or otherwise known as supplementary benefits, are policy provisions attached to a basic policy to provide benefits which are not offered or enhance those that are already provided in the basic policy. |
Single Premium Policy |
An insurance policy in which the premium is paid in one lump sum at the beginning of the policy term. |
| Sum Assured | The amount that the policyholder will receive in the event of occurrence of the insured risk as stated in the insurance policy. |
| Term Insurance | An insurance policies that provides a coverage for a set/certain period of time where the policy will pay out the benefit in the event of your death, provided the death occurs within the specific time frame. |
| Waiver of Premium | A provision that keeps an insurance policy in force in the event the policyholder is unable to pay the premiums due to total and permanent disability or critical illness or other conditions as specified in the policy. |
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