- Waiting Period (A/D)
-
The time interval after a policy is taken out before a policyholder can
claim benefits. Sickness benefits commonly include a 6 month or 1 year
waiting period to prevent abuse by new policyholders with undeclared
illnesses. See also: Deferred
Period. , Off
Period.
- Waiting Period (H)
-
A period of employment during which the employee is ineligible to join
the company's occupational pension scheme.
- Waiting Period (Sickness Benefit) (F)
-
A term used in connection with PHI policies. Permanent health insurance
contracts may sometimes preclude the policyholder from claiming benefit
within, say, six months of the start of the contract - the waiting period.
Normally operated as a period before a deferred period can commence.
Typical waiting periods are three, six and twelve months. The purpose is to
protect against anti-selection.
See also Deferred
Period and Off
Period.
- Waiver of Premium (F)
-
This is a benefit attached to a contract under which regular premiums are
payable. In the event of sickness or disability or, sometimes, unemployment,
the premium payable under the contract, including the premium for the waiver
of premium benefit, is waived.
- Weak Basis (H)
-
A way of referring to sets of valuation assumptions. A weak basis
produces a low value of liabilities or a high value of assets. Therefore,
even if a scheme has a good level of funding on such a basis, it may still
be in a weak position.
See also Strong
Basis.
- Whole Life Assurance (F)
-
This is a type of life assurance contract under which the benefit only
becomes payable upon the death of the policyholder. whenever that occurs.
Premiums may be regular (eg monthly) or single. Whole life assurance may
be participating or non-participating, unitised or conventional. The
contract may also be written on more than one life (eg joint life first
death, joint life second death).
- Whole Life Assurance (N)
-
Benefit is payable on death whenever it occurs. Premiums may continue
throughout life or be limited in number. Can be with or without profits
(bonuses). Thus whole life insurance is insurance payable to a beneficiary
at the death of the insured whenever that occurs. Premiums may be payable
for a specified number of years (limited payment life) or for life (straight
line).
- Whole Life Cover (A/D)
-
An assurance benefit providing protection throughout the life of a
policyholder.
- Whole Life (F)
-
A term used to describe types of life assurance contract.
A whole life single life annuity pays an income during the whole of the
life of an individual A whole life single life assurance policy provides a
death benefit on death of the assured, whenever it occurs
- Winding-up (H)
-
The process of terminating a pension scheme, usually by applying the
assets to the purchase of immediate and deferred annuities for the
beneficiaries, or by transferring the assets and liabilities to another
pension scheme, in accordance with the scheme documentation.
- With Profit Policy (A/D)
-
A life assurance policy or annuity where the proceeds contain a
"profit" element. Most with profit policies are designed so that a
bonuses are paid provided the insurer's financial performance is not
dreadful.
- With Profits Policy (N)
-
The policyholder is entitled to share in the profits of the office by way
of bonuses.
- With-Profit Guide (F)
-
One of the requirements of the Financial Services Act in the UK is that
every office writing with- profit business produces a with-profit guide each
year. Policyholders may obtain it free of charge in order to find out how
the with-profit fund works. The guide also covers the bonus and investment
philosophy of the office.
- With-Profits Policy (F)
-
A non-linked life assurance contract is with-profits or with-profit if
the benefit payable has a bonus element that the company determines at its
own discretion based upon its actual experience. (Alternatively, a
with-profit policy may have, premiums which are reduced at the discretion of
the office. This method of distributing surplus is less common in the UK.)
Often, because of low guarantees, the office can afford a flexible
investment policy and may be able to give good value for money to
with-profit policyholders.
- Withdrawal (A/D)
-
Leaving a pension scheme.
- Without-Profits Policy (F)
-
A non-linked life assurance contract is without-prof its or non-profit if
the life insurance company has no discretion over the amount of benefit
payable, ie the policy document will specify at outset the amount of the
benefits under the contract. This does not preclude a contract where the
benefit increases in line with a Retail Prices Index from being a non-profit
contract.
A without-profits policy will often have some benefits which are not
guaranteed (eg the surrender value under an endowment assurance) although
the "main" benefit is guaranteed.
Non-profit is the alternative name.
- Woolhouse's Formula (A/D)
-
A formula used to approximate the present value of non annual life
annuities.
- Working Layer (G)
-
The first layer of an excess of loss treaty with a relatively low excess
point.
- Writing/Written (A/D)
-
A technical term for issuing an insurance policy.
- Written Premium (G)
-
The amount of premium written in an accounting period, either net or
gross of reinsurance.
