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You can use our glossary
to find the definitions of many terms you will come
across when arranging a secured homeowner loan
Click on a letter A
to Z for terms bneginning with that letter
P
Paid Up Plan
A policy where contributions have ceased and any benefits accumulated are preserved.
Permanent Health Insurance (PHI)
Cover that provides a regular income until retirement should the insured be unable to work due to illness or disability.
Premium
The amount of money paid into an insurance policy.
Proprietary
A life insurance company that issues its profits to its shareholders.
Q
Qualifying Policy
The proceeds from an insurance policy can be paid free of income tax and capital gains
tax providing the policy adheres to the rules set out by the Inland Revenue.
R
Renewable Term Assurance
An ordinary term assurance policy with the option to renew the plan at expiry without
the need for further medical evidence.
S
Single Premium Policy
Where a single lump sum is paid for an insurance policy.
Sum Assured
The benefit payable under a life assurance policy.
Surrender Value
Not applicable to all life insurance policies. The amount paid by the insurer if
the policyholder stops paying into the policy before the agreed date, for reasons other than death.
T
Term Assurance
A life assurance policy that pays out a lump sum on the death of the
life assured within the term of the plan.
Terminal Bonus
An additional sum of money paid, usually on With Profits
policies, on death of the policyholder
or at maturity. The amount is dependent upon the profits made by the insurance company.
Terminal Illness Benefit
An option under term assurance policies, although most plans now include this benefit as standard.
A policy with this option will pay out the sum assured if you suffer a terminal illness.
Total Permanent Disability Cover
Pays out the benefit of a policy if you are unable to work due to illness or disability.
Trust
Putting your life assurance policies in trust ensures that any proceeds paid out on death
do not form part of your estate which may be liable to inheritance tax.
Trustee(s)
Person(s) holding and administering property or monies in a trust fund for others.
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Life insurance guide
