Car Insurance - Insurance Glossary Term

Assuring - Those insured under the provisos of an indemnity rule.


Benefit - The money rewarded to the policyholder when a profess is made.



Bid Price - The promotion estimate or coins-in estimate of your thing worth.



Bonus - Relates to a with-profits document. The total of money added to the help billed under the strategy. The quantity is reliant winning the profits made by the guarantee band. Added bonuses cannot be full away.



Convertible Term Assurance - A tenure wrapping document which gives you the choice to switch your recent procedure to an entirety-life or donation pledge document, lacking having to take promote health examinations.



Critical Illness Insurance - A rule that pays out a lump sum on the diagnosis of life threatening illnesses showed in the language of the plot.



Decreasing Term - A form of duration life indemnity where the loss payment decreases each year your procedure. Premiums continue altitude. This variety of certificate is frequently sold as advance assurance. There is no ceding rate for this document.



Endowment Insurance - A cover strategy that pays a confirmed total at the end of a precise point or leading the casualty of the insured if it occurs within that episode.



Family Income Benefit - Term assurance which pays money to the life securer’s dependants for a set episode, rather than paying a lump sum.



Guaranteed Bond - A connect in which principal and pastime are guaranteed by a person other than the issuer. Guaranteed Bonds can be profits or expansion.



Increasing Term - The case and the quantity you pay into the statement are amplified by a detail percentage each year calculated on the creative sum insured. Designed as a way to increase your life envelop as your wages increase.



Investment Bond - Combines investment with some life cover. The payments you make into an assurance statement or investment bind, generally a lump sum, are invested in the cover business's with-profits or component-coupled resources (Life Funds). Different types of bonds include the guaranteed affix and piece-connected solitary premium cement. Not to be baffled with a business or government bond, an investment that offers a rigid rate of attention and a district where your selected Life Funds may be invested.



Life Fund - This mostly refers to Unit allied Investment Funds. These are wake run by Life Assurance or Pension Companies. Such income is worn for individuals reveal life assurance policies to invest in. The assets detained within the stock are alienated into a number of units. When a depositor contributes to a Life Fund, units are allocated to investors in proportion to their investment.



Maturity - An arranged year when a gift statement trimmings and the proceeds, including any bonuses, are payable.



Mutual - A life assurance party that is owned by its with-profits policyholders.



Offer Price - The estimate at which store units are bought.



Premium - The quantity of money rewarded into a cover procedure.



Proprietary - A life assurance troupe that issues its profits to its shareholders.



Qualifying Policy - A life assurance based savings chart that has to be written for a smallest of 10 existences and must fulfill certain qualifying document criteria to ensure the absolute payout is tax gratis.



Renewable Term - Term Insurance that may be renewed for another period without sign of insurability.



Single Premium Policy - Where a solo lump sum is rewarded for an indemnity statement.



Sum Insured - The quantity of money that is guaranteed to be salaried under a cover statement, before any bonuses are added.



Surrender Value - Not applicable to all life assurance policies. The total that a cover policyholder is permitted to greet when he or she discontinues coverage



Term Insurance - Provides policyholder with protection only. Life assurance payable to a beneficiary only when an insured dies within a specific number of living (the time). If you live outside the idiom you do not entertain any payment. This is thought to be the cheapest form of assurance.



Terminal Bonus - This is an addition bonus determined when a mortality or ripeness take is salaried. Terminal bonus is often only rewarded if the document has been in-strength for a tiniest number of living at declare time. The amount is reliant winning the profits made by the cover visitors.



Unitized With Profits Fund - Also known as a Unit-Linked with Profits Fund. A enter of Life Fund that can invest in UK and overseas shares, house, permanent gain securities and coins. When you invest in this supply through a cover strategy, you buy 'units'. When an annual bonus is affirmed, you can both entertain more units or it is added to the troop charge on a daily footing. Due to the addition of bonuses the item rate does not imitate the esteem of the underlying investments.



Unit-Linked - Also called Unitized. If your cover rule is part-connected, some of your money is used to acquire 'units' in a subsidize. The help of your document at adulthood is dependent leading the progress of the furnish in which the policy is invested. Generally refers to policies that deal protection and cutback such as donation insurance, total life insurance and investment bonds.



Unit-Linked Single Premium Bond - A sole lump sum life insurance policy where your investment is multiply over a number of Life Funds.



Whole Life Insurance - Whole life insurance provides a loss payment for the policyholder as it builds up cash value. The policy ashes in compel for the period of the insured, as long as premiums are paid according to the policy accord. You can decide insurance that pays out on collapse a guaranteed sum only, the sum positive any bonuses that have been added, or the sum positive any additional value from the expansion of the funds invested in.



Without Profits - When a policy reaches maturity or the policyholder dies, the amount paid out is the primitive guaranteed sum only. You would not be free to any bonuses.



With Profits - Relates to insurance policies that coalesce investment with protection. This type of policy is entitled to a share of the profits made by the insurance troupe. Premiums are invested in the with profit support, reversionary bonuses are useful typically on an annual base which ruminate the investment tumor of the subsidize assets. On killing and/or maturity a more depot bonus might be practical to the supply value.



With Profits Bond - An insurance policy where your lump sum is in most suitcases invested in a Unitized With Profits Fund (which is planned under the Life Funds divide).