This glossary will help you understand common and uncommon insurance terms in order for you to understand better the topic.
Cash-value life insurance
Noun
Cash value life insurance is a form of permanent life insurance (lasting for the lifetime of the holder) that features a cash value savings component. The policyholder can use the cash value for many purposes, such as a source of loans or cash or to pay policy premiums.
fr: Assurance vie avec valeur de rachat
Cost-of-living adjustments
Noun
A cost of living adjustment (COLA) is an increase in your pay or benefits that often depends on the rising cost of goods and services—also called inflation.
fr: Ajustements au coût de la vie
CPP
Abbreviation
The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces part of your income when you retire
Example: When I will retire, I will receive monthly benefit from the CPP.
fr: Régime de pensions du Canada (RPC)
Disability Insurance
Noun
Disability insurance is a type of insurance that will provide income in the event a worker is unable to perform their work due to disability.
Example: My friend had to stop working after an accident. She will receive an amount of money each two weeks to complete her pay from her disability insurance company.
fr: Assurance invalidité
Guaranteed Income Supplement
The Guaranteed Income Supplement (GIS) is a monthly payment you can get if you are 65 or older, you live in Canada, you get the Old and Age Security (OAS) pension and your income is below the maximum annual income threshold for the GIS based on your marital status.
The Supplement is based on income and is available to low-income Old Age Security pensioners. It is not taxable.
Example: After 65 years old, you can receive a monthly payment from the Guaranteed Income Supplement.
fr: Supplément de revenu garanti
Guaranteed renewability
Noun
A guaranteed renewable policy is an insurance policy feature that ensures that an insurer is obligated to continue coverage as long as premiums are paid on the policy. While re-insurability is guaranteed, premiums can rise based on the filing of a claim, injury, or other factors that could increase the risk of future claims.
Example: Since I did all my payments for my insurance contract, the guaranteed renewability is automatically applied.
an amount of money that is paid at one time : a single sum of money
Example: Since my husband died, my life insurance will provide me a lump-sum payment to complete my husband income.
fr: montant forfaitaire, paiement unique
Old and Age Security
Noun
The Old Age Security (OAS) program is a universal retirement pension available to most residents and citizens of Canada who have reached 65 years old.
fr: Pension de la Sécurité de vieillesse
Premium adjusts
Noun
An adjusted premium is a premium on an insurance policy that does not remain at a fixed price indefinitely. Instead, the rate can move as needed by the insurer, throughout the life of the policy.
fr: Ajustement de prime
QPP
Abbreviation
The Quebec Pension Plan ( QPP ) is a compulsory public insurance plan. It provides people who work or have worked in Quebec and their families with basic financial protection in the event of retirement, death or disability. The QPP is financed by contributions from Quebec workers and employers.
Example: Since my parents retired at 60 years old, they receive money from the QPP every months.
fr: Régime des rentes du Québec (RRQ)
Residual benefits
Noun
This option pays you a partial benefit if you have a disability that prevents you from working full-time.
Example: Since I can't work full time due to my disability, I get residual benefits from my disability insurance company to complete the money I should get by working full time.
fr: Prestations résiduelles
Term life insurance
Noun
Term insurance is a type of life insurance policy that provides coverage for a certain period of time or a specified "term" of years. If the insured dies during the time period specified in the policy and the policy is active, or in force, a death benefit will be paid.