We have compiled a list of useful terms that you are likely to come across in your dealings with credit cards so that you know exactly what you are getting into.

• Activity travel insurance - most dangerous sports will not be covered by regular travel insurance policies. This type of insurance can protect you for activities and extreme sports whilst you are away, providing cover tailored to your personal needs.
• Annual travel insurance - this type of insurance runs for a period of twelve months and is designed for people who travel more than twice in a year, helping them to save on the costs of individual policies.
• Backpacking insurance - type of travel insurance designed to suit the needs of a world traveller.
• Broker - a broker is an intermediary offering insurance products. Intermediaries are either independent or tied- independent brokers who can offer products from a choice of providers whereas tied brokers are committed to providing products from affiliate insurers.
• Claim - a claim is when a policyholder seeks remuneration under the terms and conditions as set out by their policy document.
• Exclusion - an exclusion is a specific situation, person or item of property that will not be covered by insurance. Exclusions will be outlined in the policy document.
• Insurance premium tax - also referred to as IPT, this is a tax levied by the government on almost all insurance products excluding life insurance.
• Insured - this is the term used to describe the person or persons covered by an insurance policy.
• Insurer - this is the term used to describe the organisation, body or company providing insurance to the customer.
• Intermediary - see broker.
• Long stay travel insurance - this type of insurance will protect those who require to stay abroad for periods longer than those permitted by regular single trip insurance.
• Premium - this is the fee paid by the insured to pay for the insurance services that they require. Premiums are generally paid annually.
• Single trip travel insurance - this type of cover will protect the insured for one single trip. Usually these trips must not exceed a pre-determined time limit.
• Worldwide insurance - see backpacking insurance.
• Winter sports insurance - winter sports such as skiing or snowboarding are not covered by regular travel insurance; this type of insurance is designed to provide that extra cover.