Income Insurance Glossary

Accident - means a bodily injury which prevents you from doing your normal occupation (or any job which you are reasonably able to do, given your experience, education or training) and for which you are receiving treatment from a doctor.

Ceased Trading - means you have involuntarily ceased trading as a result of your business having insufficient assets to meet its debts and liabilities and:

• Final closing accounts for your business have been prepared and submitted to HMRC
• Your business has been put in the hands of an insolvency practitioner or
• Your business is a partnership which has been or is being dissolved and final closing accounts have been prepared or are being prepared and submitted to HMRC

Full-time employment - means working for at least 16 hours a week under a contract of employment that does not have a fixed or implied end date. You must be receiving a salary or wages and paying Class 1 National Insurance contributions.

Gross monthly income - refers to your average monthly salary before tax (including any commission and/or bonus payments you receive). If you are self-employed this refers to the monthly average of your income over the last 12 months.

Immediate family - refers to your spouse, civil partner, partner of the same or opposite sex whom you currently live with and have lived with for a continuous period of at least 1 year, parent or child.

Initial Exclusion Period - The initial exclusion period will be 60 days if at the policy start date you have a secured or unsecured loan that has been in force for 60 days or less, otherwise it will be 120 days. There are certain circumstances where we may waive the initial exclusion period. Your certificate of cover will confirm the exclusion period which applies to your policy. In some circumstances the initial exclusion period may only be waived for a part of the amount of monthly benefit you claim. If this applies to your policy it will be set out in your certificate of cover;

Monthly Benefit - means the monthly amount chosen by you when you apply for cover. The maximum monthly benefit allowable shall not exceed £2,000 or 65% of your gross monthly income whichever is less.

Pre-existing medical condition - means any condition, injury, illness, disease, sickness or related condition and/or associated symptoms, whether specifically diagnosed or not:

• which you knew about (or ought reasonably to have known about) at the start date or
• for which you sought or received advice, treatment or counselling from any doctor during the 12 months immediately before the start date

Qualification Period - means the number of days at the beginning of a claim which you must wait before you receive your monthly benefit.

Self-Employed/Self-Employment - means you are working for at least 16 hours a week and paying Class II National Insurance contributions and are:

• Helping with, managing or carrying on a business in the United Kingdom, the Channel Islands or the Isle of Man and liable to pay tax under Schedule D case I, II, IV and V of the Income and Corporations taxes Act 1988
• A partner or in a partnership; or
• A person who exercises direct or indirect control over a company;

Sickness - means an illness or sickness which prevents you from doing your normal occupation (or any job which you are reasonably able to do, given your experience, education or training) and for which you are receiving treatment from a doctor.

Unemployed/Unemployment - means being entirely without gainful employment (which includes the assisting, managing and/or the carrying on of any part of the day to day running of a business) and are available for and actively seeking work and registered with:

• the Department for Work and Pensions;
• the Department for Social Development in Northern Ireland; or
• the States Insurance Authorities in the Channel Islands or an EU member state

You must have signed a Jobseeker’s agreement within the United Kingdom, or equivalent agreement in Northern Ireland, the Channel Islands or a European Union member state.