Looking for the meaning of a particular word? Click on a letter to obtain the list of corresponding words.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

B

Beneficiary
Individual other than the policyowner designated to receive benefits under an insurance contract.

Benefit
Amount paid by an insurer pursuant to a life, income, or accident and health insurance policy. The benefit is paid to the policyowner, the insured person, or the beneficiary as the case may be. A claim must be filed for the insurer to pay the benefit. In the case of a pension plan, this term refers to the accrued benefits a member is entitled to under the plan.
See Coverage.

Bonds
A certificate acknowledging indebtedness by which the issuer promises to pay the bearer a certain amount of interest for a specified period of time and to repay the principal at maturity. Property is generally pledged as security for the loan, except in the case of government bonds. However, the term is often used to designate all types of loan securities.

C

Canada Pension Plan
A Canadian federal program that provides a pension for retirees who reside in all provinces except Quebec and who have contributed money into the plan during their working years. See Quebec Pension Plan.

Capitalized Value
The value of an asset or business determined by capitalization of the earnings or profits it generates.

Cash Surrender Value
The amount available when a life insurance policyowner surrenders a policy before maturity or the death of the person insured. The surrender value is only recoverable with certain types of life insurance.

Clause
Provision of an insurance contract. A policy is made up of contractual clauses (i.e., the items on which the parties have agreed).

CLHIA
The Canadian Life and Health Insurance Association Inc. (CLHIA) is an organization that represents the majority of life and health insurance companies active in the Canadian market. The CLHIA handles the important and urgent issues that concern its member companies and represents the industry at the various levels of the government. The CLHIA provides consumers with brochures, guide books, manuals, and information leaflets covering a vast array of subjects, including individual, disability, and travel insurance, financial planning for retirement, etc.

Common Disaster
Death of more than one person during the same event. If the beneficiary and the insured person  die at the same time, or if the sequence of death cannot be determined, the insured person is presumed to have survived the beneficiary. This presumption is important since it affects which estate of the two individuals will receive payment of the benefits. Many contracts contain a common disaster clause under which the beneficiary must survive the insured person for a specified period of time to be entitled to benefits.

Contract
Means the Contract Application, the present individual variable insurance contract and any amendments as specified in the section of the contract titled “Our Agreement With You;” of the Contract and Information Folder.

Contract Anniversary
The anniversary of the date on which the contract came into force and that marks the beginning of each new year of coverage.

Contribution
Sum paid to a private or state-run pension plan. The contribution may be made both by an employee and by his/her employer.

Conversion
Clause in a temporary individual life insurance policy authorizing the policyowner to convert term insurance into whole life insurance without providing proof of insurability. Also, in group insurance, a clause allowing a member whose policy is ending for a predetermined reason to convert a group insurance contract into an individual insurance contract without providing proof of insurability.

Coordination of Benefits
When an individual, who is insured for a benefit under a group insurance plan that is subject to the coordination of benefits provision, and is also insured under another group insurance plan that provides similar benefits, the amount of benefits payable during any calendar year will be coordinated and the amount payable under the plan will be prorated so that the benefits payable under all plans will not exceed 100% of the incurred expenses. For more information on the coordination of benefits standards established by the Canadian Life and Health Insurance Association Inc, refer to section Consumer Information.

Corporate Body
A corporation or company.Synonym: Legal Person.

Corporate Name
The name under which a corporate body conducts its business.

Coverage
Protection provided by an insurance policy.
Also called : Benefit

Credit Insurance
Insurance designed to pay the balance due on a loan if the borrower dies before the loan is repaid. Optional "disability insurance" may be added to cover the insured portion of the periodic mortgage payments for as long as the insured remains disabled.