Glossary- Life Insurance, Health Insurance, Retirement

Endowment

A type of insurance policy which provides for the face amount stated in the contract to be payable in a fixed date or on the life insured's earlier death.

Equity

A stock or the interest in capital gains received from the ownership of a stock.

Ex-gratia claim

This occurs where strict liability has not been proved but the insurer may decide that it would be unduly harsh or cause hardship, not to make some payment. Such payments are made out of goodwill, without admission of liability.

Ex-gratia payments

These are payments made by a company where the claim is a gray area, doubt exists but it may be to the benefit of the claimant and the company feels out of goodwill that some form of payment should be made. The claim is made without any admission of liability. Payment is only made on the understanding that the claimant accepts the amount in full satisfaction of all claims he or she may have on the policy.

Exclusion

A condition under which the benefit is not paid is referred to as exclusion. This is to avoid any misunderstanding. For example, for accidental policies, there is usually exclusion for suicide or self-inflicted injuries by the life insured.

Extended Term Insurance

A provision in some policies which provides the option of continuing the insurance for a particular insured amount as per the policy condition as term insurance.