Every insurance word, in plain English

The terms that hide in your policy, defined without the jargon — with the French equivalent for each. Hover any highlighted term across the site to see its definition.

131 terms across life, disability, critical illness, home, auto, travel, group benefits, claims and tax. French terms are seed translations for the upcoming bilingual site.

General & contract

Actual cash value (ACV)(Fr : Valeur au jour du sinistre): Replacement cost minus depreciation.Why it matters: ACV settlements subtract wear-and-tear, so an older item is paid at its depreciated value — often far less than replacing it new.Example: A 10-year-old roof destroyed by wind may be paid at its depreciated value, not the cost of a new one.
Beneficiary(Fr : Bénéficiaire): The person or entity who receives the payout.Why it matters: Who you name can matter as much as how much you buy — it decides who's paid and whether probate is avoided.Example: Naming your spouse directly means the payout skips your estate.
Cash surrender value(Fr : Valeur de rachat): The amount a permanent life policy pays if you cancel it.Why it matters: It's often small in the early years because a permanent policy's costs are front-loaded — so surrendering early can return far less than you paid in.Example: Cancelling a five-year-old whole life policy may return only a fraction of the premiums paid.
Claim(Fr : Réclamation / sinistre): A request for payment under your policy after a loss.Why it matters: How you file and document a claim — before cleanup, in writing, on time — often decides how much you're paid.Example: Photographing damage before cleanup strengthens a home insurance claim.claims
Coinsurance(Fr : Coassurance): A clause penalising under-insurance below a required percentage of value.Why it matters: If you insure a property below the required percentage of its value, a coinsurance clause can cut your payout even on a partial loss.Example: Insuring a building to 60% of value when 80% is required can reduce a claim payment proportionately.
Contestability period(Fr : Délai de contestation): The early window (often two years) when an insurer can void a life policy for misrepresentation.Why it matters: During this window an insurer can investigate and rescind a policy for a misstatement, which is why full honesty on the application matters most here.Example: An undisclosed health condition discovered 18 months in can let the insurer deny the claim.
Coverage(Fr : Garantie / couverture): A specific protection the policy provides.Why it matters: Each coverage protects against a specific risk — knowing which you have (and don't) is the whole point of an audit.Example: Your policy may include liability coverage but exclude sewer backup.
Deductible(Fr : Franchise): What you pay out of pocket on a claim before insurance pays the rest.Why it matters: Raising it lowers your premium but shifts more of each loss onto you — the right level is the most you could comfortably pay after a bad day.Example: With a $1,000 deductible on a $4,000 claim, you pay $1,000 and the insurer pays $3,000.deductible optimizer
Exclusion(Fr : Exclusion): Something the policy specifically will not cover.Why it matters: Exclusions are where “I thought I was covered” claims die — reading them tells you what the policy truly protects.Example: A standard home policy excludes overland flood, so a river-flooded basement isn't covered without an endorsement.
Face amount(Fr : Capital assuré): The stated benefit a life policy pays on death.Why it matters: The face amount is the headline benefit a life policy pays — the number your needs analysis is trying to land on.Example: A $500,000 face amount pays $500,000 to your beneficiary on death.
Grace period(Fr : Délai de grâce): The window after a missed premium before the policy lapses.Why it matters: It's the short window to pay a missed premium before the policy lapses — miss it and coverage can end.Example: A 30-day grace period lets you pay a late premium and keep the policy in force.
Indemnity(Fr : Indemnité): Payment that restores you to your pre-loss position, no more.Why it matters: Indemnity means insurance restores you to where you were — not better — which is why payouts subtract depreciation.Example: You can't profit from a claim; indemnity pays your actual loss, not more.
Insured(Fr : Assuré): The person or thing the policy protects.Why it matters: The insured is whose life or property is covered — not always the same person who owns or pays for the policy.Example: A spouse can own a policy on the other spouse, who is the insured.
Insurer / underwriter(Fr : Assureur): The company that takes on the risk and pays claims.Why it matters: The insurer carries the risk and pays claims, so its reputation matters — though Assuris and PACICC backstop insolvency.Example: You pay premiums to the insurer, which pools them to pay the few claims each year.
Lapse(Fr : Déchéance / résiliation): When a policy ends because premiums were not paid.Why it matters: A lapsed policy pays nothing — and re-buying later means higher age-based premiums or a new medical.Example: Missing premiums past the grace period can lapse a life policy just before it's needed.
Limit(Fr : Limite / montant de garantie): The most the policy will pay for a covered loss.Why it matters: The limit caps what the policy pays — set it too low and a large loss leaves you exposed for the excess.Example: A $1M liability limit pays up to $1M; a $2M judgment leaves $1M on you.
Named perils vs all-risk(Fr : Risques désignés / tous risques): Named-perils covers only listed causes; all-risk covers everything except stated exclusions.Why it matters: Named-perils covers only what's listed; all-risk covers everything except stated exclusions — a big difference.Example: A named-perils policy that doesn't list water damage won't pay for it.
Peril(Fr : Risque / péril): A cause of loss (fire, theft, wind).Why it matters: Whether a peril is covered — and how (named vs all-risk) — determines if a given loss is paid.Example: Fire and theft are covered perils; flood usually isn't without an endorsement.
Policy(Fr : Police): The contract between you and the insurer setting out what is covered.Why it matters: The policy wording — not the brochure or the sales pitch — is what actually governs your claim.Example: If the policy excludes overland flood, a flooded basement isn't covered regardless of what you were told.
Premium(Fr : Prime): The amount you pay for coverage, monthly or annually.Why it matters: It's the price of coverage — and what you're comparing when you shop, though the cheapest premium can hide a thinner policy.Example: You might pay $30/month (the premium) for $500,000 of term life.
Reinstatement(Fr : Remise en vigueur): Restoring a lapsed policy, often with conditions.Why it matters: You may be able to revive a lapsed policy — but often only within a window and with evidence of insurability.Example: Reinstating a lapsed policy may require back premiums and a health questionnaire.
Renewal(Fr : Renouvellement): Continuing a policy for another term, sometimes with new pricing.Why it matters: At renewal your premium can change — the moment to re-shop and re-check coverage against your current needs.Example: A term policy may renew at a much higher age-based premium unless you re-qualify.
Replacement cost(Fr : Valeur à neuf): The cost to replace with new, without depreciation.Why it matters: Replacement-cost coverage avoids the depreciation hit of ACV — worth confirming on both your contents and your dwelling.Example: A destroyed eight-year-old couch is replaced with a comparable new one, not paid out at its used value.
Rider / endorsement(Fr : Avenant): An add-on that changes or extends a policy's coverage.Why it matters: Riders let you tailor a base policy — for a small cost they can add real protection, though some are oversold add-ons you don't need.Example: A child rider adds modest coverage on your kids and guarantees their future insurability.
Sub-limit(Fr : Sous-limite): A smaller cap on a specific category within the overall limit (e.g. jewellery inside a home policy).Why it matters: A sub-limit quietly caps a category well below your overall limit — the trap for jewellery, bikes, and electronics.Example: A home policy with a $6,000 jewellery sub-limit won't fully cover a $20,000 ring collection.
Subrogation(Fr : Subrogation): The insurer's right to recover its payout from a responsible third party.Why it matters: After paying your claim, your insurer can pursue whoever caused the loss — and a successful recovery can also return your deductible.Example: Your insurer pays your water-damage claim, then recovers it from the contractor who caused the leak.
Underwriting(Fr : Tarification / souscription): How an insurer assesses your risk to decide whether and at what price to cover you.Why it matters: It sets your price and whether you're covered at all — and it only gets stricter with age and diagnoses, so buying while healthy matters.Example: A non-smoker in good health earns a preferred rate class; a recent diagnosis can add a rating or a decline.guides/insurability and underwriting
Waiting / elimination period(Fr : Délai de carence): The time after a loss before benefits begin.Why it matters: A longer waiting period lowers your premium but means more time with no benefit — you have to bridge it with savings or other coverage.Example: A disability policy with a 90-day elimination period pays nothing for the first three months.disability gap
Waiver of premium(Fr : Exonération de prime): A rider that keeps a policy in force without premiums if you become disabled.Why it matters: It keeps your coverage alive, premium-free, exactly when a disability has cut your income — a cheap, underrated rider.Example: You become disabled and can't work; the insurer waives your life premiums and the policy stays in force.

Life insurance

Accelerated death benefit(Fr : Prestation anticipée de décès): Early access to part of a death benefit if you are terminally ill.Why it matters: It lets you access part of your death benefit early if you're terminally ill — cash when it's most needed.Example: A terminal diagnosis can trigger early payout of part of the death benefit for care costs.
Convertible term(Fr : Temporaire transformable): Term you can convert to permanent coverage later without new medical underwriting.Why it matters: It preserves your insurability — you can switch to permanent coverage later without a new medical, valuable if your health changes.Example: Diagnosed with a condition at 45, you convert your term policy to permanent without re-qualifying.
DIME method(Fr : Méthode DIME): A needs estimate: Debt + Income + Mortgage + Education.Why it matters: It's the quickest way to sanity-check a coverage amount — add the four big obligations your family would face.Example: $50k debt + $600k income need + $300k mortgage + $80k education ≈ $1.03M of need.life insurance needs
Guaranteed insurability rider(Fr : Garantie d'assurabilité): Lets you buy more coverage later without re-qualifying medically.Why it matters: It locks in the right to buy more coverage later without a new medical — a cheap hedge if your family will grow.Example: A young professional adds coverage at each life stage without re-qualifying medically.
Human capital(Fr : Capital humain): The present value of your future earnings, used as an upper-bound needs estimate.Why it matters: It values your entire remaining career, so it's an upper bound — useful as a ceiling, not the exact number to buy.Example: A 35-year-old earning $90k has a large human-capital value that shrinks each year toward retirement.life insurance needs
Level premium(Fr : Prime nivelée): A premium that stays constant over the term.Why it matters: A level premium stays flat for the term, making budgeting predictable — most personal term is level.Example: A 20-year level-premium policy costs the same in year 1 and year 20.
Mortgage life / creditor insurance(Fr : Assurance prêt hypothécaire / assurance crédit): Lender-sold coverage that pays your loan balance; a declining benefit at a level premium.Why it matters: The benefit shrinks with your balance while the premium stays level, and it pays the lender — personal term is usually the better deal.Example: As your $400,000 mortgage falls to $250,000, so does the payout, but the premium doesn't.mortgage insurance
Participating policy(Fr : Police avec participation): A permanent policy that may pay dividends.Why it matters: A par policy may pay dividends, but they're not guaranteed — judge it on its guaranteed values, not the illustration.Example: Illustrated dividends can make a par whole life policy look better than its guaranteed column.
Permanent life insurance(Fr : Assurance vie permanente): Any life policy meant to last your whole life.Why it matters: Permanent coverage never expires and builds value — right for a lifelong need, but far costlier than term.Example: A lifelong dependant or an estate-tax bill is a permanent need permanent insurance can fund.
Renewable term(Fr : Temporaire renouvelable): Term that renews without a new medical, at a higher age-based premium.Why it matters: It renews without a new medical, but at a steeply higher age-based premium — a safety net, not a plan.Example: A 10-year term can renew at 45 without a medical, but the premium jumps sharply.
Segregated fund(Fr : Fonds distinct): An insurance investment with maturity/death guarantees, protected within Assuris limits.Why it matters: It's an investment wrapped in an insurance contract — it can bypass probate and carries Assuris protection, but fees are typically higher.Example: A seg fund can name a beneficiary so the money passes directly to them, outside the estate.
Term ladder(Fr : Échelonnement de temporaires): Stacking terms of different lengths to match a falling need.Why it matters: Laddering matches coverage to a falling need, so you pay mainly for what you still need instead of one big policy.Example: Stacking 10-, 20-, and 30-year terms steps coverage down as the mortgage shrinks.term ladder
Term life insurance(Fr : Assurance vie temporaire): Coverage for a set number of years; pays only if you die during the term.Why it matters: It's the cheapest way to cover a big, temporary need — a mortgage and young kids — because most term policies expire unused.Example: $500,000 of 20-year term for a healthy 35-year-old can cost around $30/month.life insurance needs
Universal life insurance(Fr : Assurance vie universelle): Permanent coverage combining insurance with an investment component.Why it matters: It unbundles the insurance and investment, giving you flexible premiums and investment choice — with more responsibility and risk on you.Example: You might direct the investment side and adjust premiums year to year, unlike a fixed whole life policy.
Whole life insurance(Fr : Assurance vie entière): Permanent coverage with a cash value that grows.Why it matters: It never expires and builds cash value, which is why it costs far more — useful for a permanent need, but oversold as an investment.Example: Funding an estate-tax bill or a lifelong dependant is a job whole life does that term can't.guides/term vs whole life

Disability & income protection

Any-occupation(Fr : Toute profession): Pays only if you cannot do any job you are reasonably suited to; a harder test than own-occupation.Why it matters: Most group LTD switches to this stricter test around month 24 — a common point for claims to end.Example: You couldn't return to your trade but could work a desk job — under any-occ the benefit may stop.disability gap
Benefit period(Fr : Période de prestations): How long a disability benefit will pay (e.g. to age 65).Why it matters: It's how long a disability benefit pays — 'to age 65' is far more protective than a two- or five-year cap.Example: A benefit period to age 65 keeps paying a long-term disability claim for decades.
Cost-of-living adjustment (COLA)(Fr : Indexation): A rider that grows your benefit with inflation.Why it matters: A COLA rider grows your benefit with inflation, protecting a long claim from losing purchasing power.Example: A COLA rider raises a disability benefit each year so a 20-year claim keeps pace with prices.
CPP Disability (CPP-D)(Fr : Prestation d'invalidité du RPC): Federal disability benefit for those with enough CPP contributions and a severe, prolonged disability.Why it matters: It's a thin federal floor, not income replacement — hard to qualify for, and most group LTD plans reduce their payment by it.Example: The average new CPP-D benefit is about $1,234.68/month (2026), well below most households' needs.disability gap
EI sickness benefits(Fr : Prestations de maladie de l'assurance-emploi): Up to 26 weeks of federal benefits when you cannot work due to illness.Why it matters: It's a short bridge, not a plan — 55% of pay to a weekly cap for up to 26 weeks, then it ends.Example: In 2026, EI sickness pays up to $729/week for 26 weeks, after which longer-term coverage must take over.disability gap
Future income option(Fr : Option de revenu futur): Lets you increase DI coverage as your income grows, without new medicals.Why it matters: It lets you increase DI coverage as your income rises without new medicals — useful early in a rising career.Example: A resident doctor locks in the option to raise coverage as their income grows.
Long-term disability (LTD)(Fr : Invalidité de longue durée (ILD)): Income replacement for extended disability, usually a work benefit.Why it matters: It's most Canadians' main income protection, but it's capped, often taxable, and switches to a stricter test around month 24.Example: A '60% of salary' LTD benefit can land near 45% of take-home once tax and caps apply.disability gap
Non-cancellable / guaranteed renewable(Fr : Non résiliable / renouvellement garanti): Personal DI features protecting your rate and coverage.Why it matters: These features lock your rate and coverage so the insurer can't raise your premium or change terms — valuable in personal DI.Example: A non-cancellable DI policy guarantees your premium for the life of the policy.
Offset / integration(Fr : Coordination / réduction): When one benefit (e.g. group LTD) is reduced by another (e.g. CPP-D).Why it matters: It's why stacking benefits often doesn't add up — a group plan commonly reduces its payment dollar-for-dollar by CPP-D or other benefits.Example: A $5,000/month LTD benefit is reduced by a $1,234 CPP-D payment, so the insurer pays about $3,766.disability gap
Own-occupation(Fr : Profession habituelle): A disability definition that pays if you cannot perform the material duties of your own occupation — often switches to any-occupation after a set period.Why it matters: It's the most important phrase in a disability policy: a true own-occ definition keeps paying if you can't do your specific job, while a weaker one can end the claim once you could do any job.Example: A surgeon with a hand tremor is disabled under own-occ, even if she could still teach.disability gap
Replacement ratio(Fr : Taux de remplacement): The share of your income a benefit replaces.Why it matters: It's the share of income a benefit replaces — judge it after tax and after caps, not the headline percentage.Example: A '67% of salary' benefit can replace closer to 50% of take-home once tax applies.disability gap
Residual / partial disability(Fr : Invalidité résiduelle / partielle): Benefits when you can work partially but earn less.Why it matters: It pays a partial benefit when you can work but earn less — coverage for a gradual or partial recovery.Example: Returning to work part-time at reduced pay can still trigger a residual disability benefit.
Short-term disability (STD)(Fr : Invalidité de courte durée (ICD)): Income replacement for the first weeks or months of disability.Why it matters: It covers the early weeks so you're not without income before LTD or EI begins.Example: STD might pay a percentage of salary for the first 17 weeks, then LTD takes over.

Critical illness & health benefits

Coordination of benefits(Fr : Coordination des prestations): Rules for splitting a claim across two plans (e.g. two spouses' benefits).Why it matters: When two plans cover the same expense, coordination rules split it so total reimbursement doesn't exceed 100%.Example: A couple covered by both employers coordinates so a dental bill isn't paid twice.
Covered conditions(Fr : Maladies couvertes): The listed illnesses that trigger a CI payout, each precisely defined.Why it matters: The precise medical definitions — not the count of conditions on a brochure — decide whether a claim pays.Example: An early-stage cancer may be excluded by a policy's exact wording even though 'cancer' is listed.critical illness
Critical illness insurance (CI)(Fr : Assurance maladies graves): A tax-free lump sum on diagnosis of a covered condition.Why it matters: It pays even if you can still work — a cushion, not income replacement, that stacks with disability insurance.Example: A $100,000 CI benefit pays on a covered cancer diagnosis after the survival period, tax-free.critical illness
Drug formulary(Fr : Formulaire / liste de médicaments): The list of drugs a plan covers.Why it matters: The formulary is the list of drugs a plan covers — a prescription off the list may not be reimbursed.Example: A new medication may be denied if it isn't on your plan's drug formulary.
Extended health benefits(Fr : Assurance maladie complémentaire): Coverage for drugs, dental, paramedical, and vision beyond medicare.Why it matters: It fills the gaps medicare leaves — drugs, dental, vision, and paramedical — usually through a group plan.Example: Extended health benefits reimburse prescription drugs and dental work provincial plans don't.
Health spending account (HSA)(Fr : Compte de gestion-santé): An employer account for eligible health expenses.Why it matters: An HSA lets an incorporated business reimburse medical costs tax-efficiently — a common replacement for group health.Example: A self-employed owner pays dental bills through an HSA with pre-tax corporate dollars.
Loss of independent existence(Fr : Perte d'autonomie): A CI trigger based on inability to perform daily activities.Why it matters: It's a CI trigger based on losing the ability to perform daily activities — a payout tied to function, not a named disease.Example: Being unable to perform several activities of daily living can trigger a CI benefit.
Paramedical coverage(Fr : Soins paramédicaux): Physio, massage, psychology, and similar practitioners.Why it matters: Paramedical coverage pays for physio, massage, psychology and similar — usually capped per practitioner per year.Example: A plan might cover $500/year of physiotherapy under paramedical benefits.
Return of premium(Fr : Remboursement des primes): A rider refunding premiums if you never claim.Why it matters: This rider refunds premiums if you never claim — it raises the cost, so it's a trade-off, not free money.Example: A return-of-premium rider refunds your CI premiums at a set point if no claim was made.
Survival period(Fr : Période de survie): The days you must survive after diagnosis for CI to pay (often 30).Why it matters: It's why critical illness isn't the same as life insurance — you must survive a set number of days after diagnosis for the benefit to pay.Example: With a 30-day survival period, a claim pays only if you're alive 30 days after the covered diagnosis.

Group & workplace benefits

Conversion privilege(Fr : Privilège de transformation): The right to convert group life to an individual policy on leaving, without a medical.Why it matters: It lets you convert group life to an individual policy without a medical when you leave — but the window is short.Example: On leaving a job, you may convert group life to personal coverage within 30–60 days, no medical.
Evidence of insurability (EOI)(Fr : Preuve d'assurabilité): Medical information required for higher coverage.Why it matters: Above the automatic maximum you must prove your health, which can be rated or declined — so higher elections aren't guaranteed.Example: Electing extra group life above the non-evidence maximum requires a health form.
Flex benefits(Fr : Régime flexible): A plan letting you allocate credits across coverage options.Why it matters: Flex plans let you allocate credits across options — useful, but easy to under-insure the pieces that matter most.Example: You might spend flex credits on dental instead of topping up disability coverage.
Group benefits(Fr : Régime collectif): Insurance provided through an employer or association.Why it matters: Group benefits are most employed Canadians' biggest coverage and the least understood — and they end with the job.Example: Your work plan's group life is often 1–2× salary and stops when you leave.guides/how group benefits work
Non-evidence maximum (NEM)(Fr : Maximum sans preuve): The coverage you get without a medical; above it, evidence of insurability is required.Why it matters: It's the most coverage you get automatically without a medical; above it you must submit evidence of insurability, which can be declined.Example: A plan covers up to $200,000 of group life without a medical; electing $400,000 needs approved evidence for the extra $200,000.
Portability(Fr : Transférabilité): Whether coverage continues after you leave the employer (usually limited).Why it matters: Most group coverage isn't portable — it ends when the job does, often when you're most stressed and less healthy.Example: Group life and LTD usually can't follow you to a new employer.
Taxable benefit(Fr : Avantage imposable): Employer-paid coverage that counts as income to you (drives LTD taxability).Why it matters: When your employer pays the premium, the benefit becomes taxable income — which can quietly cut a '60% of salary' disability benefit to closer to 45% in hand.Example: Employer-paid LTD of $5,000/month is taxable; paying the premium yourself would make the benefit tax-free.disability gap

Home & property

Additional living expenses (ALE)(Fr : Frais de subsistance supplémentaires): Pays extra living costs if a loss makes your home uninhabitable.Why it matters: ALE pays the extra cost of living elsewhere when your home is uninhabitable — keep every receipt to claim it.Example: After a fire, ALE covers hotel and meal costs above your normal spending.
Condo unit-owner policy(Fr : Assurance copropriétaire): Covers a condo owner's unit improvements, contents, liability, and assessments.Why it matters: It covers your improvements, contents, liability, and — critically — your exposure to the corporation's deductible and assessments.Example: Loss-assessment coverage on your unit policy responds when the corporation's insurance falls short.guides/condo insurance
Contents / personal property(Fr : Biens meubles): Covers your belongings.Why it matters: Insure contents at replacement cost, and watch sub-limits — replacing everything you own costs more than most people guess.Example: A total contents loss can exceed $100,000 for an average household.
Deductible chargeback / assessment(Fr : Refacturation de franchise): When a condo corporation charges a unit owner its (often large) deductible.Why it matters: If a loss starts in your unit, the corporation can bill you its large deductible — specific coverage protects against it.Example: A burst hose in your condo unit could see the corporation charge you its $50,000 deductible.
Dwelling coverage(Fr : Garantie du bâtiment): Covers the structure of your home.Why it matters: It should reflect rebuild cost, not market value — insure to what it costs to rebuild, not what the house would sell for.Example: A home worth $800k on the market might cost $500k to rebuild — the limit should track the rebuild figure.guides/home insurance gaps
Earthquake endorsement(Fr : Garantie tremblement de terre): Separate coverage for seismic damage (relevant in BC and the St. Lawrence region).Why it matters: Earthquake is excluded by default and carries its own (often percentage) deductible — price both in seismic zones.Example: In coastal BC, an earthquake endorsement adds coverage with a separate deductible.guides/home insurance gaps
Guaranteed replacement cost(Fr : Valeur à neuf garantie): Rebuilds your home even if the cost exceeds the policy limit.Why it matters: It protects you when rebuild costs spike above your policy limit — the insurer rebuilds anyway, rather than capping the payout.Example: After a wildfire drives up construction costs, the insurer rebuilds even though the bill exceeds your dwelling limit.
Home business endorsement(Fr : Avenant entreprise à domicile): Extends coverage for business activity a standard policy would exclude.Why it matters: Business or short-term-rental activity can void parts of a standard policy — an endorsement restores coverage.Example: Running an Airbnb without an endorsement can void a home claim.
Homeowner policy(Fr : Assurance habitation): Coverage for your dwelling, contents, and liability.Why it matters: It bundles your dwelling, contents, and liability — but the exclusions (flood, sewer, earthquake) are where gaps hide.Example: A standard homeowner policy covers fire and theft but excludes overland flood by default.guides/home insurance gaps
Loss assessment(Fr : Cotisation spéciale / quote-part): Covers your share when a condo corporation's insurance falls short.Why it matters: With condo master-policy deductibles now $50,000–$250,000, this is what stops the corporation's shortfall or deductible from becoming your personal bill.Example: The building's insurance falls short after a fire and each owner is assessed $15,000 — loss-assessment coverage responds.guides/condo insurance
Mortgagee clause(Fr : Clause hypothécaire): Names your lender's interest on the policy.Why it matters: It names your lender's interest, so claim payments and notices involve them — which is why a cheque may be co-payable.Example: A large claim cheque may be issued to you and your mortgage lender jointly.
Overland flood(Fr : Inondation / débordement d'eau): Water entering from overflowing bodies of water; a separate endorsement.Why it matters: It's excluded by default and sold separately, so many flooded homeowners discover the gap only at claim time.Example: A river overflowing into your basement is covered only if you bought the overland water endorsement.guides/home insurance gaps
Personal liability(Fr : Responsabilité civile): Covers you if you are liable for injury or damage to others.Why it matters: It covers you if you're liable for injury or damage to others — turning a lawsuit from ruinous to manageable.Example: A guest injured at your home could claim against your personal liability coverage.
Rebuild cost vs market value(Fr : Coût de reconstruction vs valeur marchande): What it costs to rebuild vs what the property would sell for; insurance uses rebuild cost.Why it matters: Insurance pays to rebuild, which can differ sharply from market value — track rebuild cost to avoid being under- or over-insured.Example: In a hot market, purchase price includes land you can't lose to a fire.
Sewer backup(Fr : Refoulement d'égout): Water backing up through drains; optional coverage, often capped.Why it matters: It's optional and often capped low, while the average backup claim runs far higher — so the cap, not just the coverage, is the trap.Example: A $10,000 sewer-backup cap against a $43,000 finished-basement loss leaves most of it on you.guides/home insurance gaps
Standard unit / betterments(Fr : Unité standard / améliorations): The line between what the corporation insures and what you insure.Why it matters: The 'standard unit' definition draws the line between what the corporation insures and what you must — upgrades are often on you.Example: Renovated flooring above the standard unit may need your own unit-improvement coverage.
Tenant / renter insurance(Fr : Assurance des locataires): Covers a renter's belongings and liability.Why it matters: Your landlord insures the building, not your belongings or liability — tenant insurance is cheap and covers both.Example: A kitchen fire you cause could make you liable for damage to units below — tenant liability covers it.guides/tenant insurance
Umbrella / excess liability(Fr : Assurance parapluie / responsabilité complémentaire): Extra liability limits above your home and auto policies.Why it matters: It adds a large layer of liability over your home and auto for a small premium — protection against a judgment that exceeds your base limits.Example: A $2M injury claim against you exceeds a $1M auto limit; a $2M umbrella covers the $1M gap.guides/umbrella liability

Auto

Accident benefits (AB)(Fr : Indemnités d'accident): No-fault benefits for your own injuries, regardless of blame.Why it matters: Accident benefits pay your own injury costs regardless of fault — file them even if you were partly to blame.Example: AB covers your treatment and income loss after a crash you caused.auto insurance
Collision coverage(Fr : Garantie collision): Pays for your vehicle's crash damage.Why it matters: It's optional coverage for your own vehicle's crash damage — worth it while the car's value justifies the premium and deductible.Example: You skid into a pole; collision pays to repair your car, minus your deductible.
Comprehensive coverage(Fr : Garantie tous risques (véhicule)): Covers non-collision damage: theft, fire, hail, vandalism.Why it matters: It covers the non-crash losses — theft, fire, hail, vandalism, falling objects — that collision doesn't.Example: A hailstorm dents your car; comprehensive pays the repair, minus your deductible.
Direct compensation – property damage (DCPD)(Fr : Indemnisation directe): Your own insurer pays for damage when another driver is at fault.Why it matters: When another driver is at fault, your own insurer pays for your vehicle damage — that's the system working, not a denial.Example: A driver rear-ends you; under DCPD your own insurer pays to repair your car.
Facility Association(Fr : Facility Association): The insurer of last resort for high-risk drivers in private-market provinces.Why it matters: It's the insurer of last resort for high-risk drivers who can't get coverage in the regular market.Example: A driver with a poor record may be placed with the Facility Association at higher rates.
No-fault insurance(Fr : Assurance sans égard à la responsabilité): Your own insurer pays your injury/damage claims regardless of fault.Why it matters: Your own insurer pays your injury benefits regardless of blame, and your right to sue for injuries is limited or removed.Example: In BC's Enhanced Care, you're compensated for injuries whether or not you caused the crash, and generally can't sue.auto insurance
OAP 1 (Ontario Automobile Policy)(Fr : Police d'assurance automobile): Ontario's standard auto policy form.Why it matters: The OAP 1 is Ontario's standardized auto contract — identical across insurers, so it tells you exactly what you're covered for.Example: Every Ontario driver's policy is the OAP 1, whatever company issued it.
Public auto insurer(Fr : Assureur public): A government insurer (ICBC, SGI, MPI, SAAQ).Why it matters: In BC, Saskatchewan, and Manitoba, basic auto insurance comes from a government insurer, not a private market.Example: In BC you buy basic Autoplan from ICBC, the public insurer.auto insurance
Statutory minimum liability(Fr : Minimum légal de responsabilité): The least third-party liability the law requires.Why it matters: It's the least liability the law requires — almost always too little for a serious injury, so most carry far more.Example: Most provinces set the minimum at $200,000; drivers commonly carry $1–2 million.auto insurance
Third-party liability(Fr : Responsabilité civile): Covers injury or damage you cause to others.Why it matters: It covers injury or damage you cause to others — the most important auto coverage, and the minimums are dangerously low.Example: A serious at-fault injury can generate a claim in the millions, far above a $200,000 minimum.auto insurance
Tort system(Fr : Régime de responsabilité délictuelle): You can sue an at-fault driver for damages.Why it matters: It preserves your right to sue an at-fault driver for your losses — but you carry the risk of being sued, so liability limits matter.Example: In Alberta you can sue an at-fault driver, so most people carry $1–2M of liability, not the minimum.
Uninsured/underinsured motorist(Fr : Automobiliste non assuré / sous-assuré): Protects you against drivers with no or too little coverage.Why it matters: It protects you when the at-fault driver has no or too little insurance — otherwise you'd absorb the shortfall.Example: A hit-and-run or uninsured driver injures you; uninsured-motorist coverage responds.

Travel & out-of-country

Pre-existing condition(Fr : Condition préexistante): A health condition you had before the trip or policy.Why it matters: It's the thing travel and some health policies scrutinize most — coverage often hinges on it being 'stable' for a set window.Example: Diabetes managed without changes for the past 180 days may be covered; a recent dose change may not.travel medical
Provincial residency requirement(Fr : Exigence de résidence): Minimum days in-province to keep provincial health coverage.Why it matters: You must be physically present a minimum number of days a year to keep provincial health coverage — snowbirds must count days.Example: Ontario requires 153 days of presence per year to keep OHIP.travel medical
Repatriation(Fr : Rapatriement): Bringing you (or your remains) back to Canada; a required super visa coverage.Why it matters: It covers getting you (or your remains) back to Canada — expensive on its own, and a mandatory part of super visa coverage.Example: An air ambulance home after a serious injury abroad can cost tens of thousands — repatriation covers it.
Stability clause / stability period(Fr : Clause de stabilité): Requires a pre-existing condition to be unchanged for a set period before departure.Why it matters: It voids more travel-medical claims than anything else — a recent change in symptoms, tests, or even drug dose can restart the stability clock.Example: A blood-pressure dose change three weeks before a trip can disqualify a related claim on a 90-day clause.travel medical
Super visa insurance(Fr : Assurance super visa): Medical coverage (min. $100,000, one year) required for the parent/grandparent super visa.Why it matters: It's the mandatory medical coverage (min $100,000, one year, including repatriation) for a super visa — get it wrong and the visa is refused.Example: A super visa application needs proof of $100,000 of qualifying medical coverage.guides/super visa insurance
Travel medical insurance(Fr : Assurance médicale de voyage): Emergency medical coverage outside your province.Why it matters: Provincial plans pay almost nothing abroad, so travel medical is the real protection for an out-of-country emergency.Example: A US hospital stay can cost tens of thousands that your provincial plan won't cover.travel medical
Trip cancellation/interruption(Fr : Annulation / interruption de voyage): Reimburses non-refundable trip costs for covered reasons.Why it matters: It reimburses prepaid, non-refundable costs if a covered reason forces you to cancel or cut short a trip.Example: A covered illness before a cruise can trigger reimbursement of the non-refundable fare.

Claims, regulators & protection

Adjuster(Fr : Expert en sinistres): The person who assesses your claim.Why it matters: The adjuster works for the insurer, so their scope and valuation are a starting position you can dispute in writing.Example: You can challenge an adjuster's repair estimate with your own contractor quotes.claims
Assuris(Fr : Assuris): Industry-funded protection for Canadian life and health policyholders if a member insurer fails. Limits apply by benefit class.Why it matters: If a life or health insurer fails, Assuris transfers your policy and guarantees the greater of $1,000,000 or 90% of a death benefit.Example: Most Canadians' life policies are fully protected within Assuris limits.guides/assuris pacicc
Bad faith(Fr : Mauvaise foi): An insurer unreasonably denying or delaying a valid claim.Why it matters: An insurer that unreasonably denies or delays a valid claim can face extra liability — leverage when a file is handled unfairly.Example: Documented stalling on a clearly valid claim can support a bad-faith argument.
FSRA / AMF / regulator(Fr : Organisme de réglementation): The provincial body overseeing insurers and handling complaints.Why it matters: Your provincial regulator (FSRA, AMF, BCFSA, …) oversees insurers and handles market-conduct complaints.Example: A market-conduct complaint about an insurer goes to your provincial regulator.auto insurance
General Insurance OmbudService (GIO)(Fr : Service de conciliation en assurance de dommages): Independent dispute resolution for home, auto, and business insurance.Why it matters: GIO is the free, independent OmbudService for home, auto, and business insurance disputes.Example: A disputed home claim can go to GIO after the insurer's internal process.claims
Limitation period(Fr : Délai de prescription): The legal deadline to sue on a claim.Why it matters: It's the legal deadline to sue on a claim — generally around two years, but it varies by province and is easy to let lapse.Example: Negotiating a denial past the limitation period can end your right to sue.claims
Material misrepresentation(Fr : Fausse déclaration importante): A false or omitted fact that could void coverage.Why it matters: A false or omitted fact on your application can let the insurer void the policy — the reason honesty at application is non-negotiable.Example: Not disclosing a smoking habit can void a life claim during the contestability period.
OmbudService for Life & Health Insurance (OLHI)(Fr : OmbudService de l'assurance de personnes): Free, independent dispute resolution for life and health insurance.Why it matters: OLHI is free, independent dispute resolution for life and health insurance — the step after the insurer's complaints office.Example: A denied disability claim can be escalated to OLHI at no cost.claims
PACICC(Fr : SIMA): Property & casualty compensation if a home/auto insurer fails.Why it matters: If a home or auto insurer fails, PACICC covers unpaid claims within limits ($500,000 personal property).Example: PACICC steps in for outstanding claims if your P&C insurer becomes insolvent.guides/assuris pacicc
Proof of loss(Fr : Preuve de sinistre): The formal statement documenting your claim.Why it matters: It's the formal, signed statement documenting your claim — usually due within a set window (often 90 days).Example: Missing the proof-of-loss deadline can stall or jeopardize a home claim.claims
Utmost good faith(Fr : Bonne foi absolue): The mutual duty of honesty between you and the insurer.Why it matters: Insurance rests on mutual honesty — you must disclose fully and the insurer must deal fairly; breaching it has consequences.Example: Failing to disclose a material fact breaches your duty of utmost good faith.

Tax, estate & beneficiary

Capital dividend account (CDA)(Fr : Compte de dividendes en capital): Lets a corporation pay life insurance proceeds to shareholders tax-free.Why it matters: It's what lets a corporate-owned life policy pay out to the owner's estate largely tax-free — a key tool for incorporated professionals.Example: A $1M corporate policy with a $100k cost basis credits $900k to the CDA, payable to the estate tax-free.guides/corporate owned life insurance
Contingent beneficiary(Fr : Bénéficiaire subrogé): The backup if the primary beneficiary predeceases you.Why it matters: The contingent is the backup if your primary dies first — without one, proceeds can fall to the estate by default.Example: If your named spouse predeceases you and there's no contingent, the payout may go to your estate.
Corporate-owned life insurance(Fr : Assurance vie détenue par une société): A policy owned by a corporation, with distinct tax treatment.Why it matters: Ownership changes the tax math — corporate dollars fund premiums and the CDA can pass the benefit out tax-free, but structuring is complex.Example: An incorporated professional funds a policy corporately and flows the benefit through the CDA.guides/corporate owned life insurance
Estate as beneficiary(Fr : Succession bénéficiaire): Proceeds paid to your estate, exposed to probate and creditors.Why it matters: Naming your estate routes proceeds through probate — slower, taxed with fees, and exposed to creditors.Example: With the estate as beneficiary, a $500,000 payout can face probate and creditor claims.guides/beneficiary designations
Genetic Non-Discrimination Act(Fr : Loi sur la non-discrimination génétique): Federal law barring insurers from requiring or using your genetic test results.Why it matters: It bars insurers from requiring or using your genetic test results — so you can pursue testing for your health without underwriting fallout.Example: An insurer can't demand a genetic test or existing results as a condition of coverage.guides/insurability and underwriting
Irrevocable beneficiary(Fr : Bénéficiaire irrévocable): One who must consent to policy changes.Why it matters: You can't change or cancel the policy without their consent — powerful for securing support obligations, and hard to undo.Example: A divorce agreement names the children as irrevocable beneficiaries so support continues if the payor dies.
MIB (Medical Information Bureau)(Fr : Bureau d'information médicale): A shared database insurers use during underwriting.Why it matters: Insurers share coded underwriting information through the MIB to catch inconsistencies — a reason to be consistent and honest.Example: Contradictory answers across applications can be flagged via the MIB.guides/insurability and underwriting
Named beneficiary(Fr : Bénéficiaire désigné): A specifically named recipient; proceeds bypass probate.Why it matters: Naming a specific person makes proceeds skip your estate — faster payout, no probate, and generally beyond estate creditors.Example: Naming your spouse directly means the payout avoids probate and reaches them in weeks.guides/beneficiary designations
Probate(Fr : Homologation / vérification): The court process validating a will; can delay and cost the estate.Why it matters: It costs the estate a provincial fee and causes delay — which is why naming beneficiaries on insurance and registered accounts (which bypass probate) matters.Example: In Ontario, probate on a $1,000,000 estate is roughly $14,000; a named insurance beneficiary avoids it on those funds.guides/beneficiary designations