Jargon Buster
Or to put it simply... some of the terms explained in plain English:
50+ Life Cover
A life insurance policy designed to provide a cash sum upon death for UK residents aged between 50-80 years.
Basic sum assured
The guaranteed minimum payment.
Bonuses
Annual bonuses and a final bonus may be added to the basic sum assured depending on performance of the With Profits Fund. Once added, these bonuses cannot be taken away and will add to the value of the cash payment. The addition of bonuses is not guaranteed.
Premiums
The amount you pay into your 50+ Life Cover policy each month. You can contribute from just £10 up to £100 per month. When you reach age 90 you will stop paying premiums but your life cover will continue.
Cover
The value of the protection offered by the policy - in effect, the sum payable on your death.
Direct Debits
The easy way to make regular monthly payments into your 50+ Life Cover policy. Payments are transferred direct from your Bank or Building Society account.
Whole of Life
A life insurance policy where your cover lasts for as long as you pay the premiums - with a payment guaranteed when you die. If you stop paying your premiums, your cover ceases.
With Profits Fund
A fund that invests in a balanced mix of investments such as property and stock market investments. In good years, we may hold back some of the return and use it to top up bonuses in years when the fund performs less well. This is called "smoothing".
Annual bonuses may be declared annually and possibly a final bonus may be added at the end of the plan. Bonuses are not guaranteed and will depend on the future performance of the With Profits Fund and how we decide to distribute any profit.
