Individual Savings Accounts provide tax-free saving. Individuals can invest a total of £7,000 per year. From this figure, £1000 may go into life insurance, £3000 into cash deposits and £3000 into stocks and shares in a maxi-ISA. The other maxi-ISA combines cash and/or life insurance with stocks and shares as long as the entire package is provided by one company. Mini Cash ISAs and Mini Stocks and Shares each have a limit of £3,000. Mini Insurance ISA’s have a £1,000 limit.

Covers the risk of loss to a reversioner (the owner of property which will revert to him on the determination of a particular estate, e.g. death of a life tenant) caused by the birth of a child to the life tenant. The policy is on an indemnity basis.

a term used in accounting for excess of loss (reinsurance) treaties whereby all claims under policies issued or renewed in the treaty year are covered, no matter in what year they may occur; the reinsurer is at risk until all policies covered by the treaty for that year have expired and all losses have been settled.

Risk of financial loss if the issuer of a security (bank or corporation) defaults on repayments or interest and/or capital repayment.