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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
U
Unitised With Profits Fund
Can also be called a Unit-Linked With Profits Fund. This is a type of Life Fund
that can invest in UK and overseas shares, property, fixed interest securities and cash. When you invest
in this fund through an insurance policy, you buy 'units'. When an annual bonus is declared, you can
either receive more units or it is added to the unit price on a daily basis. Due to the addition of
bonuses the unit price does not reflect the value of the underlying 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 maturity is dependent upon the
growth of the fund in which the policy is invested. Generally refers to policies that offer protection
and saving such as endowment insurance, whole life insurance and investment bonds.
Unit-Linked Single Premium Bond
A single lump sum life insurance policy where your investment is spread over a number of Life Funds.
V
W
Waiver of Premium Benefit
An option under a policy which continues to pay the premiums to the plan if you are unable
to work due to illness or disability.
Whole of Life Assurance
Provides protection with or without investment. As the name suggests, this insurance
pays a guaranteed sum on the death of the policyholder, it covers you for the whole of your life.
This insurance can be without-profits, with profits or unit-linked. In other words you can choose insurance
that pays out on death a guaranteed sum only, the sum plus any bonuses that have been added, or the sum plus
any additional value from the growth of the funds invested in.
With Profits
Relates to insurance policies that combine investment with protection. This type of policy
is entitled to a share of the profits made by the insurance company. The profits are in most cases added
to your insurance policy as an annual bonus, when added they cannot be taken away. In practice With Profits
are used to smooth out the fluctuations in the stockmarket; the company retains some of the profits made
in the good years to supplement the years in which returns are bad. See also
Unitised With Profits Fund
and Terminal Bonus.
Without Profits
When a policy reaches maturity or the policyholder dies, the amount paid out is the basic
guaranteed sum only. You would not be entitled to any bonuses.
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Y
Z
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Life insurance guide
