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 the insurance company’s with-profits or unit-linked funds (Life Funds). Different types of bonds include the 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.
Life Assurance or Pension Companies. Such funds are used for individuals holding life assurance policies to invest in. The assets held within the 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 the 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.
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 the final payout is tax free.Renewable Term - Term Insurance that may be renewed for another term without evidence of insurability.Single Premium Policy - Where a single lump sum is paid for an insurance policy.
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