Protection Glossary

Single Life - own benefit

The plan is taken out to cover the life of one person, who owns the policy. On their death, the benefits are paid into their estate.

Single Life-life of another

A single life plan on the life of one person, but taken out by someone else, who owns the policy and would receive the death benefits. The plan holder must have an insurable interest in the life of the insured.

Joint Life First Death

Two people are covered but the policy pays out on the first death.

Joint Life Second Death

Two people are covered but the policy pays out on the second death only, nothing is paid out on the first death. This type of plan is used exclusively for inheritance tax planning.

Insurable interest

For a person to have an insurable interest they would suffer directly, financially as a result of the death. Those with an insurable interest in another person are:

  • A spouse

  • A creditor

  • An employer

  • A business partner

Non disclosure –utmost good faith

The contract between the insurer and the policyholder is made on the basis of ‘utmost good faith’ this means that each party trusts the other party to be honest. The policyholder is trusting that the insurer will pay out in the event of a claim and the insurer is trusting that the policyholder has provided all the facts needed to enable the insurer to decide whether to insure the policyholder and for what cost.
Non-disclosure of relevant facts will endanger the payment of any claim on a policy and anything no matter how insignificant it may seem at the time should be declared so that the insurer can decide for themselves whether it is relevant.

Written in Trust

A policy can be written in trust which is a vehicle that allows one person to provide benefits for another, looked after by a third party. The benefits of putting a policy in trust are:

  • The sum assured is outside the policyholders estate

  • The trustees have control of the funds, which means they can ensure the policyholders wishes are met

  • The sum assured can be paid to the trustees quickly, without the need for probate or letters of administration



Please feel free to contact us using our enquiry form. Alternatively, please give us a call on the following number

Money Matters FS Ltd.
5 Park Street,

Send an Enquiry

When submitting information on this form, Money Matters Direct will not use your personal data for any form of marketing or pass your data on to any third party processors. The data provided will solely be used to respond to your query/email that you have submitted. Your data will only be retained for the purposes already mentioned above or until such time as it becomes no longer valid or you specifically request its removal.