Glossary

36 terms, defined objectively. Last reviewed 10 October 2026.

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adviser: A person who gives financial advice to a client. In South Africa an adviser works for, or is, a financial services provider authorised by the FSCA. The FSCA public register shows who is authorised. Read more.
authorised: Holding an authorisation from the Financial Sector Conduct Authority to render financial services. The authorisation names the categories of financial product the holder may advise on or sell. Read more.
beneficiary: The person or people named to receive a payment from a policy or scheme when a claim is paid. A beneficiary is named by the policyholder or scheme member through a nomination.
bond: A loan from a lender that is secured on a property. The lender can take the property if the loan is not repaid under its terms. A bond is a different contract from an insurance policy.
commission: Money an insurer or product provider pays to an adviser or intermediary for a product that a client takes up. It is usually calculated from the premium. Advisers must disclose how they are paid.
conflict of interest: A situation in which a financial interest, such as how someone is paid, could influence the advice or service they give. Authorised providers have duties to manage and disclose such conflicts.
cover gap: The difference between the cover a household has and the costs that would carry on if an income stopped. The size of a gap differs for every household. Read more.
credit life: Insurance linked to a loan or credit agreement that pays towards the outstanding balance in certain events, such as death. It is a different product from life cover that is not tied to a loan.
dependant: A person who relies on someone else for financial support, such as a child, a partner or a parent. Policies and schemes each define the word in their own rules, and the definitions can differ.
disability cover: Cover that pays a lump sum or a regular amount if the insured person cannot work because of illness or injury. The conditions for a claim are set out in the policy or scheme rules.
estate: Everything a person owns and owes at the time of death, including property, savings and debts. An estate is dealt with under the law after a person dies.
exclusion: A situation or condition that a policy or scheme states it will not pay a claim for. Exclusions are listed in the policy wording or scheme rules.
FAIS: The Financial Advisory and Intermediary Services Act 37 of 2002. It sets out who may give financial advice or render intermediary services in South Africa and what duties they have. Read more.
FAIS Ombud: A body set up to resolve complaints between clients and authorised financial services providers about advice and intermediary services. It deals with complaints about providers, not about every business. Read more.
fee (advice fee): An amount a client agrees to pay an adviser or firm for advice or services, separate from or instead of commission. The adviser must disclose any fee before it is charged.
financial advice (versus information): Financial advice is guidance, a proposal or a suggestion of a financial nature given to a specific client about a financial product. General facts, such as describing how a kind of product works, are information and not advice.
financial services provider (FSP): A business or sole trader authorised by the FSCA to give financial advice or render intermediary services. Each FSP has an FSP number that identifies it on the FSCA register. Read more.
FSCA: The Financial Sector Conduct Authority, the South African body that supervises how financial services are provided and keeps the public register of authorised providers. Read more.
funeral cover: Cover that pays a sum towards funeral costs when the insured person dies. It is a separate benefit from life cover, with its own terms.
group life cover: Life cover arranged by an employer or other group for its members under one scheme. Membership usually depends on belonging to the group, so it normally ends when the membership ends. Read more.
income protection: Cover that pays a regular amount to replace part of a person's income if they cannot work because of illness or injury. The terms set how long and how much it pays.
intermediary: A person or firm that acts between a client and a product provider, for example by helping a client apply for a policy. Intermediary services are part of what FAIS covers.
key individual: A person the FSCA has accepted to manage and oversee the financial services activities of an FSP. The register lists them. Read more.
licensed: An everyday word for holding an authorisation from the FSCA to render financial services. On the FSCA register the formal term is authorised, and the register lists the categories each provider is authorised for. Read more.
life cover: Insurance that pays a lump sum to the named beneficiaries when the insured person dies, under the terms of the policy. It can be personal cover or group cover through an employer.
medical underwriting: The process an insurer uses to assess a person's health and other risk factors before deciding whether to offer cover and on what terms. It can involve questions, tests or medical records.
nomination: A written instruction naming who should receive the benefit from a policy or scheme. A nomination stays as it was until the policyholder or member changes it.
personal cover: Insurance that a person arranges for themselves, as opposed to cover provided through an employer. The person owns the policy and its terms are set in the policy schedule.
policy schedule: The part of a policy document that lists the specific details of one policy, such as the person insured, the benefits, the start date and the beneficiaries.
premium: The amount paid to an insurer, usually monthly or yearly, to keep a policy in force. Premiums are set by the insurer under the policy terms.
representative: An individual who renders financial services on behalf of an FSP and under its authorisation. The FSP is responsible for its representatives, who are listed against it on the FSCA register. Read more.
severe illness cover: Cover that pays a lump sum if the insured person is diagnosed with a serious illness that the policy lists, such as certain cancers or a stroke. The policy defines each illness and the conditions.
sum assured: The amount a policy states it will pay out if a valid claim is made. It is shown on the policy schedule.
term: The length of time a policy or contract runs. A policy can run for a fixed term, such as until a stated age or date, or until it is ended.
waiting period: The time after cover starts, or after a claim event, before a benefit can be paid. Policies and schemes set out whether there is a waiting period and how long it is.
work cover: Cover a person has through their employer, usually as part of a group scheme. It is usually tied to the employer and normally ends when the job ends. Read more.