Pat Lindner|

Assured - Those insured beneath the acceding of an allowance policy.

Benefit - The money paid to the policyholder if a affirmation is made.

Bid Bulk - The affairs bulk or cash-in bulk of your assemblage holdings.

Bonus - Relates to a with-profits policy. The bulk of money added to the account payable beneath the policy. The bulk is abased aloft the profits fabricated by the allowance company. Added bonuses cannot be taken away.

Convertible Appellation Affirmation - A appellation allowance action which gives you the advantage to catechumen your accepted action to a whole-life or award allowance policy, after accepting to yield added medical examinations.

Critical Illness Allowance - A action that pays out a agglomeration sum on the analysis of activity aggressive illnesses adumbrated in the acceding of the plan.

Decreasing Appellation - A anatomy of appellation activity allowance breadth the afterlife account decreases anniversary year as per your policy. Premiums abide level. This blazon of affidavit is frequently awash as mortgage insurance. There is no abandonment bulk for this policy.

Endowment Allowance - An allowance action that pays a declared bulk at the end of a defined aeon or aloft the afterlife of the insured if it occurs aural that period.

Family Assets Account - Appellation affirmation which pays money to the activity assured’s dependants for a set period, rather than paying a agglomeration sum.

Guaranteed Band - A band in which arch and absorption are affirmed by an article added than the issuer. Affirmed Bonds can be assets or growth.

Increasing Appellation - The awning and the bulk you pay into the action are added by a specific allotment anniversary year affected on the aboriginal sum insured. Designed as a way to access your activity awning as your balance increase.

Investment Band - Combines investment with some activity cover. The payments you accomplish into an allowance action or investment bond, usually a agglomeration sum, are invested in the allowance company’s with-profits or unit-linked funds (Life Funds). Different types of bonds cover the affirmed band and unit-linked individual exceptional bond. Not to be abashed with a aggregation or government bond, an investment that offers a anchored bulk of absorption and an breadth area your alleged Activity Funds may be invested.

Life Armamentarium - This usually refers to Assemblage affiliated Investment Funds. These are funds run by Activity Affirmation or Pension Companies. Such funds are acclimated for individuals captivation activity affirmation behavior to advance in. The assets captivated aural the armamentarium are disconnected into a bulk of units. If an broker contributes to a Activity Fund, units are allocated to investors in admeasurement to their investment.

Maturity - An agreed date if an award action ends and the proceeds, including any bonuses, are payable.

Mutual - A activity allowance aggregation that is endemic by its with-profits policyholders.

Offer Bulk - The bulk at which armamentarium units are bought.

Premium - The bulk of money paid into an allowance policy.

Proprietary - A activity allowance aggregation that issues its profits to its shareholders.

Qualifying Action - A activity affirmation based accumulation plan that has to be accounting for a minimum of 10 years and accept to fulfil assertive condoning action belief to ensure the final payout is tax free.

Renewable Appellation - Appellation Allowance that may be renewed for accession appellation after affirmation of insurability.

Single Exceptional Action - Breadth a individual agglomeration sum is paid for an allowance policy.

Sum Insured - The bulk of money that is affirmed to be paid beneath an allowance policy, afore any bonuses are added.

Surrender Bulk - Not applicative to all activity allowance policies. The bulk that an allowance policyholder is advantaged to accept if he or she discontinues coverage

Term Allowance - Provides policyholder with aegis only. Activity allowance payable to a almsman alone if an insured dies aural a defined bulk of years (the term). If you reside above the appellation you do not accept any payment. This is anticipation to be the cheapest blazon of insurance.

Terminal Account - This is an added account bent if a afterlife or ability affirmation is paid. Terminal account is generally alone paid if the action has been in-force for a minimum bulk of years at affirmation time. The bulk is abased aloft the profits fabricated by the allowance company.

Unitised With Profits Armamentarium - Also accepted as a Unit-Linked With Profits Fund. A blazon of Activity Armamentarium that can advance in UK and across shares, property, anchored absorption balance and cash. If you advance in this armamentarium through an allowance policy, you buy ‘units’. If an anniversary account is declared, you can either accept added units or it is added to the assemblage bulk on a circadian basis. Due to the accession of bonuses the assemblage bulk does not reflect the bulk of the basal investments.

Unit-Linked - Also alleged Unitised. If your allowance action is unit-linked, some of your money is acclimated to acquirement ‘units’ in a fund. The bulk of your action at ability is abased aloft the advance of the armamentarium in which the action is invested. Generally refers to behavior that action aegis and extenuative such as award insurance, accomplished activity allowance and investment bonds.

Unit-Linked Individual Exceptional Band - A individual agglomeration sum activity allowance action breadth your investment is advance over a bulk of Activity Funds.

Whole Activity Allowance - Accomplished activity allowance provides a afterlife account for the policyholder as it builds up banknote value. The action charcoal in force for the lifetime of the insured, as continued as premiums are paid according to the action agreement. You can accept allowance that pays out on afterlife a affirmed sum only, the sum added any bonuses that accept been added, or the sum added any added bulk from the advance of the funds invested in.

Without Profits - If a action alcove ability or the policyholder dies, the bulk paid out is the basal affirmed sum only. You would not be advantaged to any bonuses.

With Profits - Relates to allowance behavior that amalgamate investment with protection. This blazon of action is advantaged to a allotment of the profits fabricated by the allowance company. Premiums are invested in the with accumulation fund, reversionary bonuses are activated usually on an anniversary base which reflect the investment advance of the armamentarium assets. On afterlife and/or ability a added terminal account ability be activated to the armamentarium value.

With Profits Band - An allowance action breadth your agglomeration sum is in a lot of cases invested in a Unitised With Profits Armamentarium (which is listed beneath the Activity Funds section).