DEATH IN DEFERMENT
Death between withdrawal from a pension scheme and retirement age.

DEATH AFTER RETIREMENT
Death of a member of a pension scheme after retirement. - DEATH IN SERVICE
Death while still an active member of a pension scheme. On death in service an additional lump sum benefit is usually provided, which may be higher for married members.

DEATH STRAIN (AT RISK)
The excess of the benefit payable on death over the reserve held for a life assurance policy.

DEBENTURE
A loan to a company that is secured against the assets of the company.

DEFERRED BENEFIT / DEFERRED ANNUITY
A benefit that does not take effect immediately eg a deferred pension payable from age 65
promised to a worker who leaves a pension scheme at age 40.

DEFERRED PERIOD
The time interval before benefit payments or cover begins. For example, a 40 year old may take out a deferred annuity policy with payments beginning at age 60. This would involve a 20 year deferred period. See also: WAITING PERIOD.

DEFINED BENEFIT (FINAL SALARY)
These schemes promise to pay the employee benefits at pension age which relate to their salary. Typically the scheme will purchase a pre defined pension at the retirement through an annuity.

DEFINED CONTRIBUTION (MONEY PURCHASE)
These schemes do not promise to pay benefits relating to salary at retirement. Each member of a money purchase scheme has his own earmarked funds to which he and the employer contribute. At retirement the pension purchased will be determined by how much money the member has in his earmarked fund.

DIRECT INSURER/WRITER
An insurer who issues a policy directly to a policyholder, as opposed to a REINSURER.

DIVERSIFICATION
Reducing investment RISK by holding a variety of investments of different types.

DIVIDEND
A payment to a SHAREHOLDER, representing a distribution of the company's profits. Shareholders
normally receive two dividends each year: an interim (provisional) dividend and a final dividend.
See also: CUM DIVIDEND, EX DIVIDEND.

DOUBLE ENDOWMENT
An endowment assurance policy under which the survival benefit is twice the amount of the death benefit.

DREAD DISEASES
Some life assurance policies provide a lump sum benefit if the assured falls victim to one of the "dread diseases" (heart disease, cancer, stroke).

DURATION
The time since SELECTION eg since a life assurance policy was effected. Used in addition to age in the calculation of mortality rates.

EARLY RETIREMENT
Retiring from a pension scheme before the normal retirement age.

EFFECT
To "effect" an insurance policy just means to take out the policy ie to put it into effect. (Note that "to affect", meaning "to influence", is a different word and is spelt differently.)

EMPLOYERS' LIABILITY INSURANCE
Employers' liability insurance provides protection to employers against claims from employees who are injured (eg in accidents) or become ill (eg from exposure to asbestos) as a result of their work.

ENDOWMENT
A benefit payable on survival.

ENDOWMENT ASSURANCE
A policy that combines a benefit payable on survival (ENDOWMENT) with a death benefit
(ASSURANCE). Endowment assurance policies often form the basis of savings arrangements or are
used to provide protection for mortgages.

EQUITY
An asset that entitles the holder to a share in the profits of a company or other enterprise. Often used as a synonym for a company ORDINARY SHARE.

EX DIVIDEND
A share or bond is bought/sold ex dividend (ie without attaching dividend) if the seller is entitled to receive the next dividend or coupon. See also: CUM DIVIDEND.

EXPECTED DEATH STRAIN
The expected amount of the death strain at risk for a group of policies over a given period.

EXPENSES
The cost of administration, marketing and other operations incurred by an insurance company which must be met in addition to the direct costs of providing insurance. See also: COMMISSION.

EXPOSED TO RISK
A measure of the average size of a population over a period of time. Used as the denominator for calculating mortality rates.

FIXED INTEREST SECURITY
A loan or bond that pays a fixed amount of interest each year (eg a conventional gilt).