Assured - Those insured under
terms of an insurance policy.Benefit - The money paid to
policyholder when a claim is made.
Bid Price - The selling price or cash-in value of your unit holdings.
Bonus - Relates to a with-profits policy. The amount of money added to
benefit payable under
policy. The amount is dependent upon
profits made by
insurance company. Added bonuses cannot be taken away.
Convertible Term Assurance - A term insurance policy which gives you
option to convert your current policy to a whole-life or endowment insurance policy, without having to take further medical examinations.
Critical Illness Insurance - A policy that pays out a lump sum on
diagnosis of life threatening illnesses indicated in
terms of
plan.
Decreasing Term - A form of term life insurance where
death benefit decreases each year as per your policy. Premiums remain level. This type of certificate is frequently sold as mortgage insurance. There is no surrender value for this policy.
Endowment Insurance - An insurance policy that pays a stated amount at
end of a specified period or upon
death of
insured if it occurs within that period.
Family Income Benefit - Term assurance which pays money to
life assured’s dependants for a set period, rather than paying a lump sum.
Guaranteed Bond - A bond in which principal and interest are guaranteed by an entity other than
issuer. Guaranteed Bonds can be income or growth.
Increasing Term - The cover and
amount you pay into
policy are increased by a specific percentage each year calculated on
original sum insured. Designed as a way to increase your life cover as your earnings increase.
Investment Bond - Combines investment with some life cover. The payments you make into an insurance policy or investment bond, usually a lump sum, are invested in
insurance company's with-profits or unit-linked funds (Life Funds). Different types of bonds include
guaranteed bond and unit-linked single premium bond. Not to be confused with a company or government bond, an investment that offers a fixed rate of interest and an area where your chosen Life Funds may be invested.
Life Fund - This usually refers to Unit linked Investment Funds. These are funds run by Life Assurance or Pension Companies. Such funds are used for individuals holding life assurance policies to invest in. The assets held within
fund are divided into a number of units. When an investor contributes to a Life Fund, units are allocated to investors in proportion to their investment.
Maturity - An agreed date when an endowment policy ends and
proceeds, including any bonuses, are payable.
Mutual - A life insurance company that is owned by its with-profits policyholders.
Offer Price - The price at which fund units are bought.
Premium - The amount of money paid into an insurance policy.
Proprietary - A life insurance company that issues its profits to its shareholders.
Qualifying Policy - A life assurance based savings plan that has to be written for a minimum of 10 years and must fulfil certain qualifying policy criteria to ensure
final payout is tax free.