A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

G

Gap Insurance

Vehicle insurance that pays out the difference between the insured value (market value) and the amount outstanding under the vehicle finaning agreement. For example if the insured value is R80 000 , but the owner still owes R110 000 on the vehicle , Gap insurance would cover the shortfall - also known as Top-up Insurance.

Gross Income

An individual’s total personal income before taking taxes and deductions into account.
From a corporate perspective it is a company’s revenue minus cost of goods sold. Also called “gross margin” and “gross profit”.

H

Home Loan Insurance

This policy is used to cover the outstanding balance on your home loan account, where capital is repaid via normal instalments in the event of death, disability, retrenchment or dread disease. See Bond Assurance

Home Owner’s Comprehensive Insurance

This policy provides cover for certain loss or damages to the property. These are specified in the policy document.

Homeowner’s Equity

This is the amount by which the value of a bonded property exceeds the amount owing on the loan.

Householder’s Content Insurance

Insurance against the loss or damage to the contents of the home.

I

Inflation

The general and sustained increase in prices. It is measured as a percentage change in the consumer price index (CPI).

Installment Sale

An agreement between a buyer and a seller according to which the seller agrees to sell an asset to the buyer and be repaid for it over a period of time. The seller will usually charge interest on the amount left on the original price that still needs to be paid.

Initiation Fee

This is a once-off fee allowed in terms of the National Credit Act to offset the cost of opening the account.

Interest

Amount charged to the borrower for the privilege of using the lender’s money. Interest is calculated as a percentage of the principal capital of the loan. The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan.

Insurance

A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.

J

JIBAR

Johannesburg Interbank Agreed Rate is the money market rate that is used in South Africa. The rate comes in one-month, three-month, six-month and 12-month discount terms. The rate is determined as an average of the rates indicated by local and international banks. JIBAR is calculated as a yield and then converted into a discount. The rate is calculated daily after all of the rates are received by participating banks.