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Glossary

This glossary is intended as a general aid to help you understand some of the commonly occurring phrases and jargon used in the insurance world.  If you have any questions about the use or meaning of a term or expression in any particular product or literature, you should raise them with the provider concerned.

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Tangible asset
This is a physical belonging or piece of property, for example including buildings, land or machinery.
Tax-free lump sum
You can take up to 25% of your pension fund as a tax-free lump sum when you retire. The maximum tax-free amount is set by the government. (Also known as pension commencement lump sum (PCLS) or tax-free cash).
Tax relief
Tax relief on pension contributions means you do not pay any Income Tax on the contributions you and / or your employer make into your pension scheme. Funds held in the scheme also receive favourable tax treatment. Income Tax is payable on any income taken from the scheme.
Telematics-based Motor Insurance

Insurance policies that use GPS technology to measure how a vehicle is being driven, which insurers then use to make judgements about driving performance. This information is then considered together with other traditional risk factors, such as the drivers’ age and occupation, to set premiums. ‘Safe’ drivers will usually benefit from lower premiums than ‘less safe’ drivers (also known as 'Pay how you drive' motor insurance).

Temporary claim
Your buildings insurance policy may cover the cost of alternative accommodation if your home is uninhabitable while repairs are being carried out.
Terminal bonus
A type of bonus paid out when a with-profits insurance policy (usually an endowment) comes to an end. The insurer can decide to pay either when the policy matures or when the policyholder dies, whichever comes first. It is paid out of the profits from the insurance company’s investments.
Third party
Usually for a motor insurance claim, this is the person who is involved in a claim but is neither the insurer nor the policyholder.
Third party administrator
An organisation to which an insurance company pays another company to do the administration or management of certain aspects of their business.
Tied agent
A person who sells policies for only one insurance company. Some sales people can be tied to several companies – they are known as multi-tied agents
Total permanent disability
Some life policies will pay out if the policyholder becomes permanently disabled – the policy then stops.
Trading result
An insurer’s overall profit and loss, calculated as the underwriting result plus investment income.