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Health insurance

This is cover taken out to pay bills for private medical treatment.

Hedging

Buying one security and selling another in order to reduce risk.

High yield bonds

A class of corporate bonds which pay a relatively high level of return. This is because the underlying risk of the bonds defaulting is higher than on other grades of bonds. They are also called junk or sub-investment grade bonds.

Home insurance

This pays out for damage, destruction or theft that occurs in or to your property. It’s split into buildings and contents cover: The first covers the structure and immoveable objects (such as fitted kitchen units) and the second covers your possessions. Buildings insurance will be compulsory if you have a mortgage, as your lender will demand you have cover.

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