Glossary

A

Annuity

An annuity provides you with an income in exchange for a cash lump sum. The income is determined by your age, health & sex at commencement.

Annual Percentage Rate (APR)

It is a tool used to compare the overall cost of a product. The formula used combines the interest rate, length of loan, fees being charged & any other compulsory insurance.

Arrangement FeeA

charge levied by the lender on completion of the plan

C

Compound InterestA

system whereby interest is charged on the loan amount, as well as on previously accrued interest.