Insurance Jargon Busted: Plain English for Real People

Let’s be honest - insurance can feel like a foreign language. Between “premiums”, “exclusions”, “underwriting” and “beneficiaries”, it’s no wonder many people feel overwhelmed or confused when reading their policy documents.

At New Vision, we believe financial protection shouldn’t be complicated. So, we’re breaking down some of the most common insurance terms - in plain English - to help you feel more confident and in control.

💡 Premiums

This is the amount you pay for your insurance - either weekly, fortnightly, monthly, or annually. Think of it like your subscription fee for peace of mind. The cost depends on things like your age, health, and the level of cover you choose.

🩺 Underwriting

Before your insurance is approved, the insurer needs to understand your personal situation - your health, lifestyle, and occupation. This process is called underwriting. It helps the insurer assess risk and decide what cover to offer you (and at what price).

At New Vision, we help make this step easier by explaining what’s needed and guiding you through each stage.

⚠️ Exclusions

An exclusion is something your policy doesn’t cover. For example, if you’ve had a previous injury or medical condition, your insurer might exclude related claims. It’s important to know what these are upfront so there are no surprises later.

🧾 Policy Schedule

This is your insurance “snapshot.” It shows exactly what cover you have, how much it’s for, and what you’re paying. Keep it somewhere safe — it’s what you’ll refer to if you ever need to make a claim.

🧍‍♀️ Beneficiary

This is the person (or people) who would receive your life insurance payout if you passed away. Choosing the right beneficiary ensures your money goes to the people you want to look after.

💰 Sum Insured

This is the total amount you’re covered for. For example, if your life insurance policy has a sum insured of $500,000, that’s what your loved ones would receive if you passed away while the policy is active.

🏥 Waiting Period

Some types of cover — like income protection — have a waiting period before payments start. For example, you might choose a 4-week or 8-week waiting period after being unable to work. The longer the waiting period, the cheaper your premiums usually are.

🔄 Review

Life changes, and so should your cover. Reviewing your insurance means checking that your policy still fits your needs — especially after big life events like buying a house, having children, or changing jobs.

At New Vision, we recommend reviewing your cover every year or whenever life changes.

🌱 Because clarity matters

Understanding what you’re covered for gives you confidence and peace of mind. Insurance is about protecting what matters most — your health, your family, and your financial future — and that protection should never feel confusing.

🤝 Talk to Us Today!

If you’ve ever felt unsure about what your policy actually covers, you’re not alone — and we’re here to help. At New Vision, we can review your existing cover, explain it in plain English, and make sure it’s still right for you.

📅 Book your complimentary insurance review today and let’s make sure you know exactly what you’re protected for.

👉 Contact New Vision to get started.

Amy Callon
Financial Adviser
New Vision Financial Services

Plan your future and let us help you have peace of mind along the way.