When all or most of the charges and commissions on an insurance policy or loan become payable when the contract is first taken out.

A free look period gives the client an option to review the terms and conditions of the policy within 15 days from the date of receipt of the policy document. Where he disagrees with the terms and conditions stated in the policy, he has the option to return the policy, stating the reasons for objection. In such a case the Policy would then be cancelled and the premium paid by the client would be refunded to him, after deducting: proportionate risk premium for the period on cover, expenses incurred by the Insurance Company on medical examination of the client and stamp duty charges.

Abbreviation of Foreign Exchange

When a company's shares are sold to investors and quoted on the stock market for the first time. Sometimes known as an initial public offering (IPO).

A guaranteed rate of interest paid over the term of an investment or loan. A fixed interest security is an investment such as a government bond that provides a set level of income and usually has a redemption value, paid at maturity.

Means by which a government can influence the national economy through changes in tax and public spending.

The dividend paid by a company to shareholders at the end of the financial year. Normally added to the interim dividend to produce the total dividend for the year.

A bonus payable under with-profit policies at the time of a claim. It can be altered according to investment conditions at the time. Also called "additional" or "terminal" bonus.

The medical history affecting the applicant's immediate family. It is to look for illness that is hereditary. Focus should be on illness where the onset is before the age of 50.

A condition under which the benefit is not paid is referred to as exclusion. This is to avoid any misunderstanding. For example, for accidental policies, there is usually exclusion for suicide or self-inflicted injuries by the life insured.