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Jargon Buster | Glossary of Investment Terms


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This is when the policy reaches the end of a set term (number of years) which were determined at the start.

Maturity bonus
A final bonus which is not guaranteed but added when the policy ends. The amount depends on the performance of the investments (and other profits and losses of the fund).

The average of the bid and offer price.

Mortality rate
A percentage rate at which death occurs among a defined group of people of a specified age and sometimes gender. Insurers base premiums for life insurance on the mortality rate for a proposed person(s).