Participating Policy
A participating policy is also known as a with-profits or par policy. A participating policy charges a higher premium than a non-participating policy. In return, the policy owner shares in the life insurance company's divisible surplus, in the form of bonus allotted to the policy. The bonus is allotted in addition to the guaranteed sum assured. This bonus is paid along with the basic sum assured.
 
Partnership Insurance
Cross-insuring partners in a partnership business to effect a buyout of the deceased partner's family from the business.
 
Physical hazards
Features or facts that can be observed or evaluated. This includes reports from agents, medical consultants or through investigations
 
Policy Bonus
In participating policies the company gives the policyholders a share in the profits of the company in the form of bonuses.
Generally, there are two types of bonuses for insurance policies. Reversionary bonus is a guaranteed addition to your insured amount and is paid when the policy matures (i.e. when the sum assured becomes payable) or when the life assured dies. Cash Bonuses are paid out at periodical intervals.
 
Policy face amount
This refers to the amount stated in the policy payable in the event of death or maturity.

Policy loans
Loans are granted on the security of the surrender value if a policy. The amount is usually restricted to a certain percentage of the surrender value and interest is payable. Loans can be repaid at any time before the policy becomes a claim, when the total indebtness is deducted and the balance is paid. If the total indebt ness exceeds the surrender value, then the policy is declared as terminated and the indebt-ness is written off.

Policy Term
The period of coverage provided by an insurance policy.

Portfolio
The collection of all holdings of a fund, such as bond's and stocks. In a fund's annual report, a list of the fund's current portfolio will usually be contained

Portfolio Manager
A specialist employed by a fund's advisor to invest the fund's assets in accordance with pre determined investment objectives

Premium
This is the contribution / payment that a policyholder makes to a life insurance company to obtain insurance cover. He or she has a responsibility to ensure that the correct amount states is paid as and when it falls due as stated in the policy document.

Premium waiver
This refers to all premiums due after the incident of claim is waived without any loss of benefits whatsoever unless specifically stated.

Principal
The total amount of the initial investment plus subsequent investments.

Prospectus
A document, usually in the form of a booklet, that provides information about a specific mutual fund; such as the funds investment and the redemption policies. The prospectus, according to law, must always is accompanied with the application. Prospective investors should always read the mutual fund's prospectus before sending money.

Purchase money
This is the initial amount paid to the insurance company to purchase the annuity.

Pure endowment
An endowment, which provides for the payment of the sum insured only on survival to the maturity date. On earlier death, nothing is usually paid out although some contracts may provide for the premiums paid to be refunded either with or without interest, after deducting appropriate expenses incurred.