5 insurance terms that should be on your radar

At AMP we want to empower you to take control of your finances and own your tomorrow. But we know it's not always easy. The language of finance can be confusing. 

So in our new Jargon buster series, we explain financial terms in everyday language. First, let’s talk about life insurance.

Life insurance - Protects your family in the event of your death by helping them pay outstanding debts and maintain their lifestyle. Sometimes called death insurance. 

Beneficiary - Who gets your benefit payment in the event of your death. You should keep your beneficiaries up to date, particularly following significant life changes such as getting married or having children.

Sum insured/Benefit payment - How much your beneficiaries would receive if your claim is accepted.

Indexation - If your benefit is indexed against inflation, the payment amount will increase every year to help protect your family against the rising cost of living. But bear in mind this will also increase the amount you pay for your insurance.

Terminal illness benefit - Some life insurance policies will also make an advance payment of your full benefit payment if you are terminally ill and have less than 12 months to live.

Hopefully you’ll never have to claim. But when you take out a life insurance policy, you’re buying peace of mind that your family will be fully protected if the worst happens. So it’s important that you know the right people will get your benefit payment.

Insurance can be complex so a financial adviser can help you make sense of the options and work out the right amount of insurance for your personal circumstances.


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© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.