Insurance Glossary of Terms

Assured - Those insured under the terms of an insurance policy.

Benefit - The money paid to the policyholder when a claim is made.

Bid Price - The merchandising terms or cash-in value of your unit of measurement holdings.

Bonus - Relates to a with-profits policy. The amount of money added to the benefit collectible under the policy. The amount is dependent upon the net income made by the insurance company. Added bonuses cannot be taken away.

Convertible Term Assurance - A term insurance policy which gives you the option to convert your current policy to a whole-life Oregon endowment insurance policy, without having to take additional medical examinations.

Critical Illness Insurance - A policy that pays out a lump sum of money on the diagnosis of life threatening unwellnesses indicated in the terms of the plan.

Decreasing Term - A word form of term life insurance where the death benefit lessenings each twelvemonth as per your policy. Premiums stay level. This type of certification is frequently sold as mortgage insurance. There is no resignation value for this policy.

Endowment Insurance - An insurance policy that pays a declared amount at the end of a specified time time time period or upon the death of the insured if it happens within that period.

Family Income Benefit - Term self-assurance which pays money to the life assured’s dependents for a set period, rather than paying a lump sum.

Guaranteed Bond - A chemical bond in which principal and interest are guaranteed by an physical thing other than the issuer. Guaranteed Bonds can be income or growth.

Increasing Term - The screen and the amount you pay into the policy are increased by a specific percentage each twelvemonth calculated on the original sum of money insured. Designed as a manner to addition your life screen as your earnings increase.

Investment Bond - Combines investing with some life cover. The payments you do into an insurance policy Oregon investing bond, usually a lump sum, are invested in the insurance company's with-profits or unit-linked funds (Life Funds). Different types of chemical bonds include the guaranteed chemical chemical bond and unit-linked single insurance premium bond. Not to be confused with a company or authorities bond, an investing that offers a fixed rate of interest and an country where your chosen Life Funds may be invested.

Life Fund - This usually mentions to Unit Of Measurement linked Investing Funds. These are finances run by Life Assurance or Pension Companies. Such finances are used for people holding life self-assurance policies to put in. The assets held within the monetary fund are divided into a number of units. When an investor lends to a Life Fund, units of measurement of measurement are allocated to investors in proportionality to their investment.

Maturity - An agreed day of the month when an endowment policy stops and the proceeds, including any bonuses, are payable.

Mutual - A life insurance company that is owned by its with-profits policyholders.

Offer Price - The terms at which monetary fund units are bought.

Premium - The amount of money paid into an insurance policy.

Proprietary - A life insurance company that issues its net income to its shareholders.

Qualifying Policy - A life self-assurance based nest egg program that have to be written for a minimum of 10 old age and must fulfil certain qualifying policy criteria to guarantee the concluding payout is tax free.

Renewable Term - Term Insurance that may be renewed for another term without grounds of insurability.

Single Premium Policy - Where a single lump sum of money is paid for an insurance policy.

Sum Insured - The amount of money that is guaranteed to be paid under an insurance policy, before any bonuses are added.

Surrender Value - Not applicable to all life insurance policies. The amount that an insurance policyholder is entitled to have when he or she discontinues coverage

Term Insurance - Provides policyholder with protection only. Life insurance collectible to a donee only when an insured deceases within a specified number of old age (the term). If you dwell beyond the term you make not have any payment. This is thought to be the cheapest type of insurance.

Terminal Bonus - This is an extra fillip determined when a death or adulthood claim is paid. Terminal fillip is often only paid if the policy have been in-force for a minimum number of old age at claim time. The amount is dependent upon the net income made by the insurance company.

Unitised With Net Income Fund - Also known as a Unit-Linked With Net Income Fund. A type of Life Fund that tin put in United Kingdom and overseas shares, property, fixed interest securities and cash. When you put in this monetary fund through an insurance policy, you purchase 'units'. When an annual fillip is declared, you can either have more than units of measurement or it is added to the unit of measurement terms on a day-to-day basis. Due to the improver of bonuses the unit of measurement terms makes not reflect the value of the implicit in investments.

Unit-Linked - Also called Unitised. If your insurance policy is unit-linked, some of your money is used to purchase 'units' in a fund. The value of your policy at adulthood is dependent upon the growing of the monetary fund in which the policy is invested. Generally mentions to policies that offer protection and economy such as as endowment insurance, whole life insurance and investing bonds.

Unit-Linked Single Premium Bond - A single lump sum of money life insurance policy where your investing is distribute over a number of Life Funds.

Whole Life Insurance - Whole life insurance supplies a death benefit for the policyholder as it constructs up cash value. The policy stays in military unit for the lifetime of the insured, as long as insurance premiums are paid according to the policy agreement. You can take insurance that pays out on death a guaranteed sum of money of money of money of money only, the sum plus any bonuses that have got been added, or the sum plus any further value from the growing of the finances invested in.

Without Profits - When a policy attains adulthood or the policyholder dies, the amount paid out is the basic guaranteed sum only. You would not be entitled to any bonuses.

With Profits - Relates to insurance policies that compound investing with protection. This type of policy is entitled to a share of the net income made by the insurance company. Premiums are invested in the with net income fund, reversionary bonuses are applied usually on an annual footing which reflect the investing growing of the monetary monetary fund assets. On death and/or adulthood a additional terminal fillip might be applied to the monetary fund value.

With Net Income Bond - An insurance policy where your lump sum of money is in most cases invested in a Unitised With Net Income Fund (which is listed under the Life Funds section).