INSURANCE: An arrangement (contract) by which a company undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.

INVESTMENT: The action or process of investing money for profit.

SHORT-TERM INSURANCE: This provides insurance for your possessions or assets such as your home, car, household contents, business, valuables, etc. for as long as your policy is active.

LONG-TERM INSURANCE: Insurance that covers long-term care such as life-insurance.

OVER-INSURED: When you have insurance cover for more than the value of the item that is insured.

UNDER-INSURED: When you do not have enough insurance cover for the items insured. In the event of a claim, the value may exceed the maximum amount that may be paid out by the policy.

BROKER: A person who provides advice to customers about their financial situation and provides products/ solutions. They charge customers for the service they provide and also earn money from the product provider. The broker is the link between the customer and the product provider.

FUNERAL COVER: Insurance that pays out benefits to the beneficiary in event of the death of the covered life that can be used to pay for funeral expenses.

PREMIUMS: An instalment payable to a service provider. An amount, whether once off, or in recurring payments, paid to an insurer in exchange that the insurer undertakes to provide policy benefits, under a policy contract.

BENEFICIARY: Someone who is eligible to receive payouts from insurance or investment policies.

WAITING PERIOD: A period in which no claims can be made. If a claim is made during this period, it will be rejected by the insurer.

EXCLUSION: A loss or risk that a policy does not cover.

NO CLAIM BONUS: An extra payout for not making any insurance claims during a certain period.

PREMIUM HOLIDAY BENEFIT: This is a benefit that some insurers offer in times of financial difficulty when you are unable to pay premiums. Depending on the terms and conditions, you may be able to skip the payment of premiums for a period of time.