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Insurance Glossary. The Letters H-I
Building Insurance, in fact insurance in general is an
enormously complex subject. Often you will encounter words that you
are unfamiliar with, we have provided a list of some of the most
popular terms and hope that they will prove useful to you.
Simply Click on the Letter Below to be Taken to your Page.
Holiday Insurance.
This
type of Insurance ( also known as Travel Insurance can be
arranged on either a short term or an annual basis.
The policy will cover certain perils connected with holidays.
Usually this includes cover for the costs of cancellation,
personal accident, medical treatment abroad and lost or stolen
luggage.
Home Service Business This
is a term which relates to insurance transacted by insurers
whose practice it is to call at the home of the policyholder.
Household Insurance Business - This
terms relates to the insuring of domestic dwelling houses and
policies can be extended to included contents and all risks
covers. Most policies require that the home is not used for any
business purposes although some insurer will now include
business use for certain occupations.
Insurance Illustration
- A
printed example of how much a particular investment may be worth
at a date in the future.
Impaired Lives Register -
This
is a list of individuals who have been refused, or charged more
for, life insurance, for various medical reasons.
Inception Date -
This is the date that an insurance
contract started.
Income draw down -
This is a way of taking regular income
directly from a pension fund instead of buying an
annuity . An annuity can be purchased at a later date.
Income Protection Insurance -
A policy which pays will
provide an income for as long as the policyholder is unable to
work as a result of accident or illness. The cover will
usually last until retirement. Sometimes this type of insurance
policy is called Permanent Health Insurance.
Increase in Cost of Working -
This is a form of Business
Interruption Insurance, the policy will provide an indemnity in
respect of additional costs incurred following an insured event
under an insurance policy. The amount is designed to help pay
for additional costs such as renting premises etc.
Increasing Term -
A term insurance contract in which the
sum insured increases each year by a fixed percentage of the
original sum insured.
Indemnity -
This is an Insurance principle by which
policyholders are put in the same financial position after a
loss as they were immediately before it.
Independent Financial Adviser -
Also referred to as an
IFA, this is an Adviser authorised to recommend or sell the
products of any insurance or investment firm.
Index-linked -
This term usually relates to Home
Insurance products. The sums insured in respect of Buildings
& Contents change automatically in line with an index.
Individual Policy -
Insurance taken out by an individual
on his or her own life or by an individual or legal person on
the life of another person.
Individual Savings Account (ISA) -
T his is a savings
vehicle that allows customers to invest in equities, life
assurance policies or save in cash without having to pay tax on
the returns gained from them.
Insurable Interest -
A principle of insurance which
states that you may only take out insurance if you would
suffer a financial loss if the event covered by the policy
happens. Individuals have an unlimited insurable interest
in their own life and that of their husband or wife. Insurable
Interest also relates to the insurance of property.
Insurance -
in simple terms, insurance is a risk transfer
mechanism; someone (The policyholder) pays someone else (The
Insurer or Underwriter) a sum of money (The premium or
consideration) in return for a policy, which will provide a
payment if an event (usually something unfortunate and
unforeseen) happens to the item, which is the subject of the
insurance. Perhaps you worry about your home being broken in to
or being damaged in a flood or your car being involved in an
accident. What would you do if you were suddenly faced with a
large bill to replace or repair your belongings? Insurance can
provide you with peace of mind as well as help remain
financially secure.
The terms Insurance & Assurance are interchangeable..
Insurance Company -
A company that takes on insurance
risks by offering policies in return for the payment of
premiums. Insurance Companies may be ‘mutual’ (owned by the
policyholders) or ‘proprietary’ (owned by shareholders).
Insurance Premium Tax (IPT) -
A tax imposed on most
non-life insurance premiums.
At the present moment the standard rate of insurance premium tax
is 5%. An exception is Travel Insurance which attracts an
Insurance tax of 17.5%
Insured -
A person afforded covered by an insurance
policy. .
Intermediary
-
A Person or organisation that advises and
sells insurance products on behalf of an insurance company or
Lloyds of London. The Intermediary will usually receive a
commission from the insurer whose products are sold. Commissions
vary from product to product and you may be entitled to know how
much an Intermediary is making by selling a particular product.
Investment -
The act of allowing someone else to have use
of your money in return for payment of interest and/or a share
in profits that may be made.
Investment funds -
The general name for life funds used
for savings and investment plans.
Copyright Building-insurance-uk.co.uk 2008
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