Capital Gain - If you sell an investment for more than you have paid for it, the profit you make is called a capital gain.

Collective Investment - These are investments such as unit trusts and investment trust schemes, where money is pooled from lots of people investing their contributions.

Fund Manager - Someone who invests money and manages a portfolio of investments such as unit trusts and investment trusts.

Gilts - Bonds issued by the British Government, that can be bought or sold on the stock market.

Independent Financial Adviser (IFA) - Advisers who are independent and are not limited to advising on the products of a particular company.

Individual Savings Account (ISA) - Savings accounts that let you save in cash, equities (bonds, gilts, shares and unit trusts), life insurance policies or any combination of the three separately (Mini-ISA) or together (Maxi-ISA). There are tax breaks associated with ISAs, you don't pay tax on the income you get from them or on any gain you make when you sell them.

Inflation - An increase in the price of goods and services over a period of time. In simple terms this means that the money you have today will be worth less tomorrow.

Instant Access - Accounts where if you withdraw money without giving the bank or building society notice you don't lose interest on your savings, also called current accounts.

Investment Trust - This is a company that invests in the share of other companies. Investment trusts are different from unit trusts. If you invest in an investment trust, you are buying shares in the investment trust itself.

Life Insurance - In relation to ISAs, this is an insurance policy with a savings element that will also pay out a fixed amount of money if you die during the term of the policy.

National Savings - A range of savings products that the Government issues, available at Post Offices. A very low risk investment. The Financial Services Authority does not regulate National Savings products.

OEIC - A collective fund similar to a unit trust where people pool their money enabling them to invest in a wide range of investments. Like a unit trust, it is open ended (i.e. the size of the fund is not fixed), and your money buys shares in the company managing the fund instead of buying units.

Pooled Investment - Another term for a collective investment.

Stock Market - Where stocks and shares are bought and sold.

Unit Linked - Your contributions buy units in the selected fund. The value of the units depends on the underlying assets in the fund. Consequently the value of your fund can go down or up. There is a wide range of funds to choose from; some are relatively low risk and others can be very speculative.

Unit Trust - A fund which pools investors' money, making it easier for them to buy into a wider range of investments and reduce the costs of investing. If you invest in a unit trust your money is used to buy units, thus the more people that invest in the unit trust, the bigger the trust gets.

With Profit - At the end of each year the company declares two types of bonus - the reversionary bonus and the terminal bonus. The reversionary bonus is added to the value of the fund and is guaranteed to be paid at either maturity or on the earlier death of the life assured. The terminal bonus is paid to policies which mature during the following year (or those where the life assured dies).