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Beneficiary
The person who is or will be the ultimate recipient of a benefit.
Benefit Basis The benefit structure of a group insurance policy or pension
arrangement. It defines the type and level of benefits for each category
of membership. For example, life assurance cover for one category of
employees might be 3 x salary and for another category of employees
it might be 4 x salary (the categories must be clearly defined groups
in terms of jobs carried out so as to ensure there is no illegal discrimination).
Benefits
The monetary amounts payable by the insurance company to a claimant,
assignee, or beneficiary under the terms of an insurance policy.
Broker
An agent who brings two parties together, enabling them to enter into
a contract to which he is not a principal. His remuneration consists
of a brokerage, which is usually calculated as a percentage of the sum
involved in the contract but may be fixed according to a tariff. Brokers
are used because they have specialized knowledge of certain markets
or to conceal the identity of a principal, in addition to introducing
buyers to sellers.
Buy Back
1) A payment made to reinstate into SERPS a person belonging to a contracted
out pension scheme. 2) Reinstatement of life assurance cover after a
claim has been paid on critical illness under a policy that provides
cover against critical illness and death. (Normally a policy of this
type will cease on the claim being paid; the life assurance cover is
then automatically cancelled.)
Buy Out The purchase of an insurance policy for a pension scheme member
in lieu of benefits from the scheme following the termination of pensionable
service.
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