Insurance documents are hard not because they say complicated things, but because they say them in their own language. This page translates that language: the 30 key words of group life, accident and fixed-sum health insurance, each in one clear sentence – and, where one exists, with a link to the deeper explanation.
In short: 30 terms from A to Z, one sentence each. If you are just getting to know the topic, better to start with Basic terms in minutes – it weaves the 15 most important expressions into a story. This page is for quickly looking a word up while you read.
How to use this page
Keep it open in a tab while you read an offer or policy wording – for reading the conditions we also have a separate crash course. The definitions simplify on purpose: the precise content is always defined by the given insurer's conditions.
The terms from A to Z
- Accidental death
- A fixed-sum benefit paid if death results from an accident, typically on top of the general death benefit – details in the article on accidental death cover.
- Accidental disability (permanent impairment)
- A benefit paid for permanent impairment after an accident, in proportion to the degree of the damage.
- Beneficiary
- The person entitled to the benefit; for the death benefit, the person named by the insured – details in the article on beneficiary questions.
- Bone fracture benefit
- A fixed sum in case of a bone fracture – in practice one of the most frequently paid benefits.
- Claim (benefit claim)
- The notification of an insured event – always filed by the entitled person, on the insurer's own channel; that is the fastest route.
- Cover
- The protection attached to a given risk (say, accidental death or surgery) together with the sum insured that belongs to it.
- Critical illness
- A larger, lump-sum benefit paid on the serious diagnoses listed in the conditions.
- Death benefit
- The fixed sum paid to the beneficiary if the insured dies – help in the worst moment.
- Endorsement (rider)
- An individually agreed rule in the contract that departs from the general conditions – for example an add-on concerning a job type or a sports activity.
- Exclusion
- A situation or cause for which the insurer does not pay – the most important chapter of the conditions, explained in plain words here.
- Fixed-sum insurance
- Insurance that pays a pre-agreed, freely usable amount – it gives money, it does not arrange care; read about the two worlds here.
- Grace period
- The period after a premium falls due in which the cover typically still stands despite the delay – its exact length is set in the conditions.
- Group insurance
- One contract with which the company takes out life, accident and fixed-sum health cover for its employee group – the basics are here: what is group insurance.
- Hospital daily benefit
- A fixed sum for every day spent in hospital, from the day and for the duration set in the conditions.
- Incapacity for work
- A doctor-certified state of being unable to work due to illness or accident; the cover typically pays a fixed daily amount for it.
- Indexation
- The annual value tracking of the sums and the premium at renewal, so the cover does not lose its worth as prices rise.
- Insured (person)
- The person whose life and health the cover applies to – here, the employee; more on the roles: who is who in the contract.
- Insured event
- The event precisely defined in the contract (for example a bone fracture, surgery or death) on whose occurrence the insurer pays.
- Insured person's declaration
- The employee's declaration for joining the insurance; it goes directly to the insurer – the employer learns no health data from it.
- List-based data reporting
- Handing the group's data to the insurer in table form; for a quote, an anonymised headcount, age and job structure is enough.
- Loss ratio
- The ratio of benefits paid to premiums paid – one of the background figures behind renewal premium adjustments.
- Membership administration
- Maintaining the insured group over the life of the contract: processing joiners, leavers and data changes, typically with monthly or quarterly lists.
- Policy anniversary
- The contract's yearly turning date: time for the review on request, indexation and tier adjustments.
- Policyholder
- The party that concludes the insurance contract and pays the premium – in group insurance, the company.
- Premium
- The consideration paid for the cover by the policyholder (the company); its level emerges at quote time, tailored to the team's data.
- Sum insured
- The fixed amount the insurer pays when the given event occurs – the base number of group fixed-sum insurance.
- Surgery benefit
- A fixed sum if the insured undergoes an operation – typically according to the surgery's severity category.
- Tiers
- Different-sized packages of covers within one contract (for example staff and executive levels) – a separate article covers their design.
- Underwriting
- The insurer's risk assessment; in a group contract there is typically no individual assessment up to a defined sum limit.
- Waiting period
- The period after the cover starts during which some benefits are not yet payable – when does cover actually start?
If a word is still missing
If an expression is missing, or a definition reads differently in your own offer, just ask – we collected the most common questions on the FAQ page, and the practical aids (contact sheets, templates) are on the Resources page. And for teams that also work with the Hungarian originals, there is the EN–HU mini dictionary.
A question about your own team? Book a free 20-minute consultation →
This article is for general information only; it is not an offer and not insurance, legal or tax advice. The exact terms are always governed by the insurers' current policy conditions; it is worth clarifying the precise tax treatment with your accountant.
