Reference
Insurance Glossary.
The world of insurance has its own vocabulary. We translate it. Below is the plain-English version of the terms you'll come across when you're getting quotes from us or any other broker. If a term you've heard isn't on the list, ask us and we'll add it.
A
- AMII (Association of Medical Insurers and Intermediaries)
- AMII is the UK trade body for health insurance brokers, intermediaries, and insurers. Members agree to a code of conduct and meet professional standards on advice, transparency, and complaints. The Broking Group is an AMII member.
- Annual benefit limit
- The maximum amount a Health Cash Plan or Private Medical Insurance policy will pay out for a specific benefit (for example dental or optical) in a single year. Once the limit is reached, the policyholder pays the rest.
- Appointed Representative (AR)
- An Appointed Representative is a firm authorised to carry out regulated activities under the FCA permission of another regulated firm (its "principal"). The Broking Group Limited is an Appointed Representative of Insure Life Limited (FCA FRN 913606), which is authorised and regulated by the Financial Conduct Authority.
B
- Broker
- A broker is an FCA-regulated firm that gives independent advice on insurance products and arranges cover with insurers on a client's behalf. A broker works for the client, not the insurer, and is paid through commission from the insurer or directly by the client. The Broking Group is a specialist broker focused on Private Medical Insurance, Group Risk and International Healthcare.
C
- Cancer cover
- Cancer cover is the set of treatments and services a Private Medical Insurance policy will pay for in connection with a cancer diagnosis. Cover levels vary widely. Comprehensive plans pay for chemotherapy, radiotherapy, biological therapy and follow-up scans, while basic plans may exclude some treatments or impose annual limits.
- Claim
- A claim is a request to an insurer to pay for treatment, a loss, or a benefit covered by a policy. For Private Medical Insurance, most claims are pre-authorised by phone before treatment starts.
- Critical Illness Cover (CIC)
- Critical Illness Cover pays a one-off lump sum on diagnosis of one of a defined list of serious illnesses, typically including cancer, heart attack, stroke and many others. It is usually written alongside Life Insurance, and the lump sum is paid to the policyholder.
D
- Day-patient treatment
- Day-patient treatment means private treatment that requires the use of a hospital bed for recovery but does not need an overnight stay. Most Private Medical Insurance plans cover day-patient treatment in full.
- Death in Service (DIS)
- Death in Service is an employer-sponsored insurance benefit that pays a lump sum to an employee's nominated beneficiaries if they die while employed by the company. The lump sum is typically a multiple of salary, commonly two to four times.
- Deferred period
- The deferred period is the length of time after a Group Income Protection or Income Protection claim starts during which no benefit is paid. Typical deferred periods are 4, 13, 26 or 52 weeks. A longer deferred period reduces the premium because it aligns the benefit start date with the end of any employer sick pay.
- Direct billing
- Direct billing is an arrangement where the insurer pays a hospital or clinic directly for treatment, so the policyholder does not have to pay upfront and reclaim. Direct billing is standard in major UK hospital networks and in most international healthcare networks.
E
- Excess
- An excess is the amount a policyholder agrees to pay toward each claim before the insurer pays the rest. A higher voluntary excess reduces the monthly premium. Excess levels typically range from £0 to £500 on individual Private Medical Insurance and can be higher on group plans.
F
- FCA (Financial Conduct Authority)
- The FCA is the UK regulator for financial services firms, including insurance brokers and intermediaries. The FCA's Firm Reference Number (FRN) is the unique ID that identifies a regulated firm on the FCA Register. The Broking Group is an Appointed Representative of Insure Life Limited (FRN 913606), authorised and regulated by the FCA.
- FOS (Financial Ombudsman Service)
- The Financial Ombudsman Service is the UK's independent service for settling disputes between consumers and financial services firms. If a client is unhappy with the outcome of a complaint, they can refer it to the FOS free of charge within six months of the firm's final response.
- Free Cover Limit (FCL)
- The Free Cover Limit is the maximum amount of Death in Service or Group Income Protection benefit an insurer will provide without requiring medical underwriting for each employee. Cover above the FCL requires individual medical evidence. FCL levels depend on the size and demographic profile of the scheme.
- Full medical underwriting
- Full medical underwriting is one of two underwriting methods used for Private Medical Insurance. The insurer reviews the policyholder's medical history upfront and decides on any specific exclusions before the policy starts. The other method is moratorium underwriting.
G
- Group Income Protection (GIP)
- Group Income Protection is an employer-sponsored insurance benefit that pays a monthly income to an employee who is unable to work long-term due to illness or injury. Benefits typically replace 50% to 75% of salary, start after a deferred period (often 13 or 26 weeks), and continue until return to work, the end of the policy term, or retirement.
- Group Risk
- Group Risk is the umbrella term for employer-sponsored protection products, primarily Death in Service (DIS), Group Income Protection (GIP) and Group Critical Illness Cover. It sits alongside Group PMI as the core employee benefits stack offered by UK SMEs.
H
- Health Cash Plan
- A Health Cash Plan is a low-cost insurance product that pays set cash amounts back toward everyday healthcare costs, including dental check-ups, optical care, physiotherapy, hospital stays, and complementary therapy. Each benefit has an annual cap, and claims are made by submitting receipts.
- Hospital list
- A hospital list is the network of private hospitals and clinics where an insurer will pay for treatment. Lists vary by insurer and plan. Central London hospitals usually cost more and are excluded from cheaper plans. We map each client's preferred hospitals against the lists before recommending a plan.
I
- ICOBS
- ICOBS is the FCA's Insurance Conduct of Business Sourcebook, which sets the rules for how regulated firms must communicate with customers about insurance products. ICOBS requires information to be clear, fair, and not misleading.
- Inpatient treatment
- Inpatient treatment means private medical treatment that requires the policyholder to occupy a hospital bed overnight or longer. Most Private Medical Insurance plans cover inpatient treatment in full.
- International Healthcare
- International Healthcare is private medical cover designed for individuals and employees who live, work or travel outside their home country. Cover typically operates worldwide or worldwide excluding the United States, with direct billing in major hospital networks.
L
- Life Insurance
- Life Insurance pays a lump sum (or a regular income) to the policyholder's beneficiaries if the policyholder dies during the policy term. It is most commonly written in trust so the payout is outside the estate for inheritance tax and pays out faster to beneficiaries.
M
- Moratorium underwriting
- Moratorium underwriting is one of two underwriting methods used for Private Medical Insurance. The policy excludes any pre-existing conditions the policyholder has had in the past five years, but those exclusions fall away after two years of continuous, symptom-free cover. The other method is full medical underwriting.
- Mutual insurer
- An insurance company owned by its policyholders rather than shareholders. Many UK Health Cash Plan providers are mutual insurers, including Simplyhealth, Westfield Health, Health Shield, BHSF, and Medicash. Profits are reinvested in the product rather than distributed to shareholders.
N
- Non-medically underwritten
- A policy with no health questions asked at the application stage. There are no pre-existing condition exclusions, but benefit limits are usually modest. Most UK Health Cash Plans are non-medically underwritten.
O
- Outpatient treatment
- Outpatient treatment means private medical treatment such as consultations, diagnostic tests, scans and physiotherapy that does not require a hospital bed. Outpatient cover varies widely across Private Medical Insurance plans. Basic plans cap the spend, comprehensive plans offer unlimited cover.
P
- Policy
- A policy is the legal contract between an insurer and a policyholder that sets out what is covered, what is excluded, the premium, and the policy term. The full document is called the policy schedule.
- Pre-existing conditions
- Pre-existing conditions are medical conditions, symptoms or treatments that existed before the policy started. How they are handled depends on the underwriting method (moratorium or full medical). Plans that offer "switch on equivalent terms" can carry across cover for pre-existing conditions from a previous insurer.
- Premium
- The premium is the regular amount (usually monthly or annually) the policyholder pays the insurer to keep the policy in force. Premium is influenced by age, postcode, level of cover, excess, and underwriting method on Private Medical Insurance, and by demographic factors on group plans.
- Private Medical Insurance (PMI)
- Private Medical Insurance covers the cost of private healthcare for the conditions a policyholder chooses to insure, giving faster access to diagnosis, consultation and treatment than the NHS can typically offer. PMI does not replace the NHS. It sits alongside it for the policyholder's choice of cover.
R
- Renewal
- Renewal is the point at which a policy term ends and the policyholder decides whether to continue with the same insurer (often at an updated premium), switch to a different insurer, or cancel cover. We review every client's renewal before the renewal date.
- Repatriation
- Repatriation is the cost of bringing a policyholder home after illness, injury or death overseas. It is typically included in International Healthcare policies and goes alongside emergency medical evacuation.
S
- Sum assured
- The sum assured is the amount an insurance policy will pay out on a successful claim, typically a lump sum on Life Insurance, Critical Illness Cover, or Death in Service.
- Switch (also "Switch on equivalent terms")
- A switch is moving from one insurer to another while keeping cover in force for any conditions that were already covered. This avoids re-underwriting pre-existing conditions, provided the switch happens at renewal and the new plan is equivalent. We negotiate switch terms as part of every annual review.
U
- Underwriting
- Underwriting is the process insurers use to decide what a policy will cover and how much it will cost. The two methods used for Private Medical Insurance are moratorium and full medical. Group schemes are typically underwritten on a portfolio basis rather than individually for each employee.
W
- Waiting period
- The length of time at the start of a new Health Cash Plan policy during which claims for a specific benefit cannot be made. Common on dental and optical benefits, typically one to six months from the policy start date.
- Whole-of-market
- A whole-of-market broker can place business with any insurer in the relevant market, without being tied to a single provider or a restricted panel. The Broking Group is whole-of-market for Private Medical Insurance, Group Risk and International Healthcare, with direct agencies for Aviva, AXA, Bupa, Vitality, and WPA.
- Worldwide cover / Worldwide excluding USA
- Worldwide cover and worldwide excluding USA are the two main geographic area-of-cover options on International Healthcare policies. Worldwide including USA is materially more expensive because of US healthcare pricing. Most policyholders without regular US travel choose worldwide ex-USA.
Last updated: 1 June 2026 · Missing a term? Tell us.
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