Professional who calculates risks and costs related to life assurance and investment policies.

On 6 April 2006 the Government implemented a new single tax regime for pensions. This was called A-Day.

A type of contract where an agreed amount is paid yearly for life or an agreed shorter period.

Property with monetary value ie plant, machinery, shares, invoices, etc.

Also known as insurance but generally used for life assurance. Insurance covers an uncertain event whereas life assurance covers a certain event (ie death) only where the date is unknown.

A certificate of debt issued by governments or major companies. Bonds issued by the British Government are called Gilts.

A pension policy operated by an employer for its employees. Generally, the employer helps fund employee contributions. However, some company schemes exist only for administrative convenience.

Also known as a ’premium’ and usually used with regard to personal payments into a pension scheme or into investment-based products.

A policy that pays out a capital sum in the event of a qualifying illness being diagnosed eg certain cancers. They can stand alone or be written as an ’add-on’ to a variety of other contracts eg whole of life.

A savings contract, medium to long-term life assurance-linked, that has an investment element and a protection element. The policy will pay out on surrender, maturity or death.

An interest-only house purchase loan with an associated endowment policy. The aim is to pay the outstanding capital at the end of the term and provide life assurance for the value of the capital on death before maturity. However for most endowment policies the final sum and repayment is not guaranteed.

This is the government body that regulates all aspects of the financial services industry in the UK.

The FTSE 100 is a benchmark index tracking the performance of the London Stock Exchange. The full name is Financial Times Stock Exchange 100, but it's commonly called the Footsie. The FTSE 100 comprises the 100 largest companies traded on the exchange.

The professional who runs an investment fund and decides what shares, bonds or gilts the fund should buy or sell.

Fixed rate or index-linked bonds issued and guaranteed by the UK Government.

HBOS is a major UK company. The Group provides retail, business and corporate banking, and insurance and investment services through its multi-brand strategy in the UK and internationally. About 72,000 people are employed across the Group. HBOS has the biggest private shareholder base in the UK. HBOS is the UK's largest mortgage and savings provider and the number one provider of new investment products. The Group is one of the UK's leading general insurers and has a reputation for excellence in the provision of business banking and corporate finance, delivering innovative funding solutions across a range of markets.

Money received from wages (earned) or from investments (unearned).

Put simply, inflation is the general increase of prices and subsequent fall in purchasing power of money. The cycle of price inflation starts when production costs increase for the same level of production which results in an increase in the product price. This leads to a reduction of purchasing power which in turn, leads to higher wage demands, and therefore, higher production costs.

A contract in which the recipient of agreed payments agrees to compensate the payer in the event of certain events i.e. loss, damage, injury, death, etc.

The use of money to generate income and/or capital growth.

Tax efficient environment in which to hold savings. Introduced by the UK Government on 6 April 1999 to replace PEP and TESSA products. They enable savings to be held in the form of stocks and shares, cash, or any combination of the two subject to annual contribution limits.

A general term to describe different types of personal protection policy, whose main purpose is to provide payment in the event of death.

An alternative phrase used to describe Life Assurance (see Assurance described above).

A type of loan used to purchase property. In order for a lender (mortgagee) to give a mortgage to a borrower (mortgagor) they must obtain a legal charge on the property, giving security for a loan.

A limited investment company whose business it is to manage an investment fund. A stake is made in the fund by buying shares in the OEIC. As it is an open-ended fund, the fund gets bigger and more shares are created the more investors there are. Likewise, the fund reduces if investors sell their shares back to the company.

Anywhere outside the United Kingdom.

A policy that will pay out an income or a lump sum in the event of disability, dismemberment or death, caused by an accident. Personal Accident Insurance is not Life Assurance.

An annual income, usually associated with the period after retirement, but not necessarily so. A pension fund is a general term used to describe an investment fund built up during working life and used at retirement to purchase an annuity to provide a continuing income.

A mortgage secured by repayment of the loan from the tax-free cash option available from a pension scheme at retirement.

Although no longer available, these contracts allowed limited tax-efficient investments; which may be transferred to various different investment funds.

A policy which will provide an income in the event of a long-term absence from work because of illness or disability; income ceases upon return to work, retirement or death.

This insurance policy covers the cost of in-patient medical care.

Formal document produced by an insurance company which includes all contract details, i.e., sum assured or insured, premium and payment frequency, term of contract, etc.

A pension policy available to anyone. It can be taken out by an individual, or by someone on the individual's behalf, for example a grandparent can take out a personal pension for their grandchild.

A regular payment of money into a policy to secure the contract. It also describes what is paid for a share over its par value. Premiums are sometimes also known as contributions.

Replacing an existing mortgage loan with another one.

A type of loan repayment that comprises of instalments made up of capital and interest.

The point in life where one has given up all work.

In terms of insurance, risk is the likelihood of a claim being made on a policy. In terms of investment, risk is a subjective view that comprises a balance of potential loss with potential gain.

In the UK, a flat rate sum paid to all persons with qualifying National Insurance Contributions (the full basic pension currently stands at £87.30 a week (tax year 2007-2008)).

From 6 April 2002, the State Second Pension replaced the State Earning Related Pension Scheme (SERPS). This pension provides a more generous additional state pension for low to middle earners as well as certain carers and those with a long-term illness. This pension is paid in addition to the basic State Pension and depends on your earnings during employment and National Insurance contributions you have paid.

Any policy in which the policyholder invests a premium that buys units in a fund. Performance is therefore linked directly to market conditions. This policy may be a life assurance, investment or savings policy.

The income from an investment, expressed as a percentage of its current market price.