Financial Jargon Buster - H
- Health Insurance
- Insurance against financial losses
resulting from sickness or accidental bodily injury. Included under this
definition are accident insurance, disability insurance and accidental death
and dismemberment insurance. Private Medical Insurance (to provide for the cost
of private - ie not within the National Health Service - medical treatment also
comes under this general heading).
- Hedging
- a strategy used to offset investment
risk. Usually makes use of futures or options.
- Higher Rate Tax
- Under U.K. income tax regulations,
bands of personal income are taxed at different rates. The highest rate of
income tax is currently set at 40% and for 1999/2000 it is payable on taxable
earnings above £28,000.
- Home Income Plan
- Home income plans allow elderly
homeowners to use the equity tied up in their home to purchase an income and
thus increase their standard of living. Homeowners can release this capital
without having to sell their home.
With a reversion plan, the home is sold to an insurance company that then pays a regular income to the owner. On the death of the owner, the house becomes the property of the insurance company.
With an annuity plan, the proceeds of a new mortgage on the property are used to purchase a regular income via an annuity. On the death of the homeowner, the mortgage debt must be repaid.
- Home Service Insurance
- See: Industrial insurance
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