A contract taken out with an insurer to protect against loss from a perceived risk. The person taking out the insurance is called the insured. Payments for the policy are called premiums.

The first time a company lists on the stock exchange, and asks investors to buy shares in it, is known as an IPO, new share issue, or flotation.

A set-up fee paid on some unit-linked investment policies.

An insurance policy is "in force" from its start date until the date it is terminated.

An increase in the general level of prices over a period of time. Opposite of deflation.

It is a tool which can be used to offset the effect of inflation on one's investments.

Explanation of benefits of an insurance plan

An investment fund that aims to generate current income in the form of dividends or payments from stocks and bonds, rather than capital growth. Income funds are regarded as conservative investment, and tend to be popular with retirees and other investors looking for a steady cash flow without taking on too much risk.

The present value of the family's share of the breadwinner's future earnings is considered as Human Life Value, for purposes of life insurance.

Protecting against the risk of losses in one investment by taking up other investment positions that will reduce the risk run by the first commitment. This can mean investing in opposite positions in the same or equivalent stock or markets using complicated packages of futures. Though speculative, hedging is actually a cautious action which sets out to reduce the risk run by the investor.