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Income
Policy
A Life Insurance contract that provides income on a monthly or other
periodic basis, as opposed to a policy which pays proceeds in a lump
sum.
Income
Protection Insurance
Income Protection Insurance (also known as Permanent Health Insurance
or PHI) provides a monthly income during periods of long-term illness
or disability.
Independent Financial Adviser
A broker or other intermediary authorised to sell or advise on the policies
offered by any insurance company, as well as other financial service
providers.
Industrial
Insurance
Whole of life and endowment insurance with relatively low value (under
£1000 sum assured). Historically, the premiums were collected by an
insurance company agent at the policyholder's home. However, these may
now be paid by monthly bank transfer. The legislation governing this
type of insurance is less formal than for 'ordinary branch' and if an
insurance company transacts both types of business it is required to
keep them segregated.
Inflation
The amount in percentage terms by which prices rise or fall year on
year. In the UK, the primary measure of this is the Retail Price Index
(RPI); the underlying rate of inflation is the RPI with mortgage repayment
figures stripped out.
In
Force
Business Life or Health Insurance that is current and for which premiums
are being paid or for which premiums have been fully paid.
Inheritance
Tax
This tax is payable at the time of death, on any items (money or otherwise)
where ownership changes on death or within 7 years before. There is
no inheritance tax on the first portion of the deceased person's estate
and transfers between husband and wife are exempt. There are other exemptions
and the rules governing these can be complex. In-kind Contribution Support
in the form of goods or services rather than a cash contribution.
Inland Revenue
The Inland Revenue is the government department responsible for the
assessment and collection of direct taxation on income, capital gains,
stamp duties, corporation tax and inheritance tax.
Inland
Revenue Limits
Limitations on benefits and contributions applied to an approved occupational
pension scheme in return for tax relief.
Insurable Interest
A principle of insurance that states that someone may only take out
insurance if they stand to suffer a financial loss from an event covered
by a policy.
Insurance
An agreement under which individuals, businesses, and other organisations,
in exchange for payment of a sum of money (a premium), are guaranteed
indemnity for losses resulting from certain events or conditions specified
in a contract (policy).
Insurance Premium Tax
UK tax imposed on most non-life insurance premiums.
Insured
A person or organisation covered by an insurance policy.
Insured Scheme
A pension scheme which uses an Insurance Policy as the long term investment
vehicle, as opposed to a Managed Fund Policy.
Insurer
The party to the insurance contract who promises to pay losses or benefits,
usually an insurance company.
Intermediary
A person or organisation that offers advice and arranges policies for
clients. Under UK regulations, intermediaries must be either (1) "Tied",
whereby they represent only one company in the case of life business
or a limited number of companies for general business, or (2) "Independent",
whereby there is no limit on the number of companies with which they
can deal.
Intestate
Dying without having made a Will. If a UK resident dies intestate there
are rules as to the distribution of the estate, which have to be followed
whether or not they coincide with what the deceased person would have
wished.
Irrevocable Trust
A trust arrangement that cannot be revoked by the creator.
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