Useful Terms of Life insurance

Collective life
Life insurance that covers a group of people in a common group.

Endowment
An endowment is an investment product, which will pay out a cash lump sum on a fixed date in the future. The product also provides life cover and will pay out if you die before your policy matures. These products can also include critical illness cover.

General Insurance
General insurance is non-life insurance cover for damage or loss. It includes products such as motor, travel, pet, health and home insurance.

Immediate Needs Annuity
Pays out a guaranteed income for life to cover the cost of care fees, in exchange for a one off lump sum
payment.

Long term savings
Includes savings for retirement, investments and bonds, as well as life, critical illness, and income protection products.

Relevant life
A single life insurance policy offered by employers which provides a sum of money on the death of an employee, outside of a registered group life scheme.

Term insurance
A life insurance policy that provides coverage for a set amount of time.

Underwriting loss
Loss generated by an insurer’s underwriting activity. An underwriting loss occurs when expenses incurred and claims paid out exceed premiums collected on insurance policies by the insurer.

Whole of life
Life insurance policy that stays in place for insured’s entire life and provides a sum of money to the insured’s family or estate when the insured dies.

Protection products include term life, whole of life, relevant life, income protection, critical illness and collective life insurance and provide financial security in the event of serious illness, accident or death.

The UK protection and long haul investment funds industry is the third biggest on the planet. It has a basic influence in the UK’s monetary quality, overseeing speculations of £1.9 trn (proportionate to 25% of the UK’s aggregate total assets) furthermore, paying almost £12bn in expenses to the Government. It utilizes around 334,000 people, of which around a third are utilized straightforwardly by suppliers with the leftover portion in assistant administrations, for example, broking.