Option at retirement whereby the individual’s pension payment (monthly, quarterly or some other period) may be payable at the beginning or end of the relevant period. Payments in advance attract a small cost.

Similar to a performance bond. It safeguards the principal, who has made advance payments to the contractor, against loss due to poor performance or default by the contractor.

A form of business interruption insurance relating to a new business or a new activity for an existing business. It covers loss of gross profit following delay consequent upon damage insured under a contractor’s all risks or erection all risks policy. The delay in starting the activity may be due to damage to: (a) the new works, extension or machinery; (b) suppliers’ premises; (c) machinery in transit. The indemnity period commences on the date production was intended to start and continues until it does actually start, but any increase in cost of working is calculated from the date of loss.

Cover for a property owner against loss of rental income due to an insured event delaying the letting of his property. The sum insured is the annual rent multiplied by the number of years representing the maximum delay period. A loss is measured by the rent that would have been paid by the tenant during the period of delay.

System that may be used for underwriting members of group schemes. Once a group member has been accepted at ordinary rates he becomes entitled to increases in cover up to a pre-arranged percentage without further evidence of health or underwriting scrutiny. Also called guaranteed insurability.