Glossary- Life Insurance, Health Insurance, Retirement

Waiting Period

This applies when the benefit is payable after a specified period. For certain benefits, cover may only commence after a specified period. For example, if a diagnosis of cancer or heart attack is made within 180 days of the commencement of the policy the critical illness benefit is not payable.

Will

This is a document drawn up by a person indicting how he or she wishes the assets to be distributed among the various beneficiaries. The last will drawn up according to the laws of the country is valid. It is only valid on death and certified by the courts to be so in the form of a probate.

Willful Misrepresentation

This occurs where the applicant completing the form willfully misrepresents the facts, so as to gain advantage.

Withdrawal

To redeem shares of a fund or stock. In a mutual fund, partial or full redemptions may be made. Some funds may impose an extra redemption fee to discourage market timers from pulling their money immediately after investing. If this is a fund's policy, it will stated in the prospectus.

Without Profit Policies

These are policies which do not participate in the profits of the company

With Profit Policies

These are policies that are issued on the basis that they participate in the profits of the company and are entitled to receive bonuses as a result. The actuary determines profits after valuing the assets and liabilities if the company and setting aside the necessary reserves and expenses. The profits are then shared by the shareholders and with the profit policyholders.