Dictionary of Financial Terms -
- Death Benefit
- A life insurance payment made upon the death of an insured
- Debit card
- Debit cards look like credit cards or ATM (automated teller
machine) cards, but operate like electronic cash or a personal cheque. When a purchase is made with a debit card, the
amount is automatically deducted from the associated account. No credit is extended to the cardholder and hence no debt
or interest charge is incurred.
- The rejection of an insurance application by an insurance
- Declining Grant
- A multi-year grant that becomes smaller each year, in the
expectation that the recipient organization will increase its fundraising from other sources.
- Decreasing Term Insurance
- Life insurance which pays out a lump sum if you die within the
term, but where the insurance sum assured reduces during the term. The earlier you die in the term, the bigger the
payout your dependants get.
- Deeds Fee
- An administration charge made by lenders when you repay the
mortgage to release the deeds of the property. Also known as a sealing fee.
- Deferred Annuity
- An arrangement by which a premium is paid in return for annuity
payments that will commence at a future date.
- Deferred Period
- In relation to Permanent Health Insurance (PHI) / Income
Protection, refers to the period between the commencement of illness, and the date at which eligibility for payment of
benefit under the insurance policy would commence.
- In relation to a Deferred Annuity, refers to the period between
payment of the premium and commencement of the annuity payments.
- Defined Benefit Pension Scheme
- Pensions scheme where the rules that define the benefits of the
scheme are independent of the rules relating to contributions to the scheme. The benefit will usually be expressed as
an amount of pension, often related to earnings and service.
- Deflation is the opposite to inflation and means that the money you
have today will be worth more tomorrow. Unfortunately, it isn't as good as it sounds, because it makes people reluctant
to spend, which is harmful for the economy. It is also very uncommon.
- Demonstration Grant
- A grant made to establish an innovative project or program which,
if successful, will serve as a model and may be duplicated by others.
- The procedure by which a mutual organisation owned by its members
changes to a limited company owned by shareholders. This will often result in substantial windfall gains for the
members (who are in effect the owners of a mutual organisation).
- An individual, a spouse or child or someone who depends on another
for financial support and maintenance with regard to the normal necessities of life.
- Deposit account
- An account with a bank or building society, which pays a variable
rate of interest. Higher rates are often available if you are willing to give notice before withdrawing your
- Deposit Premium
- The premium deposit paid when an application is made for an
- The decrease in value of property over a period of time due to wear
and tear or obsolescence.
- A collective name for futures, options and warrants.
- Direct debit
- A procedure under which an organisation to whom a payment is due
claims the amount directly from the bank account of its debtor.
- Physical or mental condition that prevents a person from
undertaking 'normal' duties of a job or the ordinary activities of life. For insurance purposes the word 'disability'
will have a special and particular meaning which will be defined in the policy concerned.
- The duty of any person applying for an insurance policy to tell
the insurer all relevant information affecting the risk.
- The duty of an intermediary to inform his client if commission
is being paid (and, if so, how much) in respect of the business being placed.
- Discounted rate
- An arrangement which gives you a set reduction, or 'discount' off
our standard variable rate for a specified period of time. At the end of the specified period your mortgage rate will
change to the standard variable rate in force at the time. Sometimes there are redemption penalties associated with
this type of deal.
- Discretionary Entrant
- A member of a group insurance plan who did not have an automatic
right to membership under the eligibility terms of the policy.
- Discretionary Funds
- Grant monies which are distributed according to a donor's judgement
of requests as they are received, rather than funds whose purpose is predetermined.
- Loss of limb or sight.
- The payments of any investment income generated by a fund, usually
made either half-yearly or quarterly. You can choose to have each distribution paid to you or to reinvest it in the
fund for greater capital growth.
- An amount returned to the holders of certain types of policy,
by the insurance company, out of its earnings
- An annual payment by a company to its shareholders out of
See also: Bonus
- Individual or organisation that receives a grant. Also
called a grantee.
- Individual or organisation that makes a grant. Also called a
- Double Indemnity
- Payment of twice the policy normal benefit for specific kinds of
losses under certain conditions.
- Dread Disease Policy
- Also called Critical Illness Insurance Policy (see under that
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