Insuropedia

270 insurance terms, explained plainly and written for Canadians.

Most looked-up terms

Adjusted cost basis (ACB)A life policy’s cost for tax purposes, used to work out how much of a surrender, withdrawal or loan is tax-free and how much is taxable.
Supplemental executive retirement plan (SERP)A non-registered plan in which an employer promises key executives retirement income beyond what registered pension plans and RRSPs can provide.
Net cost of pure insurance (NCPI)The yearly cost of the pure insurance in a life insurance policy, worked out under tax rules and used in the policy’s adjusted cost basis.
Government health insurance plan (GHIP)The publicly funded health insurance each province and territory runs for medically necessary hospital and physician services, at no direct charge.
Side account (universal life insurance)A taxable account held by the insurer alongside a universal life policy, for deposits above the tax limit for an exempt policy.
Maximum premium (universal life insurance)The most you can pay into a universal life policy each year while keeping it within the tax rules for an exempt policy.
Premium tax (life and health insurance)A provincial or territorial tax on insurance premiums, paid by the insurer and built into the premium you pay.
Occupation classHow a disability insurer groups occupations by risk, which affects your premium and the terms you’re offered.

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Joint first-to-die

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Key person insurance

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Insuropedia

Most looked-up terms

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A question about your coverage? Ask us.