Dictionary of Financial Terms -
- An agreement attached to the policy and accepted by the insured, to
eliminate a specified pre-existing physical condition or specified hazard.
- Waiver Of Premium
- A provision that sets certain conditions under which an insurance
policy will be kept in full force by the company without the payment of premiums.
- A security issued by a company, allowing you the right to acquire
- Whole of Life Insurance
- A life insurance policy providing payment on death, whenever this
occurs. Premiums may be payable throughout life, or for a shorter period.
- A legal document specifying how an individual's property is to be
dealt with on his or her death and appointing Executors to carry out these instructions.
- With Profits
- (Of life insurance policies) Entitled to a share of the insurance
company's profit. Each year a bonus is added to the guaranteed sum insured to reflect the company's profit. Usual
practice is to 'smooth' such bonuses so that a comparatively unsuccessful year will not necessarily lead to a lower
bonus but a succession of poor years will be reflected by a gradual reduction of bonus rate (and conversely for a
series of successful years).
- Without Profits
- (Of life insurance policies) Not entitled to any bonus. The sum
payable will only ever be the amount guaranteed in the policy however profitable the insurance company may
- With profits endowment
- A fixed term investment with life cover. The guaranteed sum insured
is increased by bonuses, representing a share of the profits of the life fund.
- Written Premiums
- The total premiums on all policies written by an insurer during a
specified period of time.
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