Glossary: H

HEALTH INSURANCE

There are many types of health insurance – some give you a lump sum if you become ill, others pay you a regular income while you can’t work. Some health insurance pays for your treatment at a private hospital – and lets you jump the waiting list.

HIRE PURCHASE

You take away the goods and can use them. You have to make regular payments and after a set length of time, when the goods have been paid for, the goods will become yours. Cars are often bought this way. You would not own the car until you have completed the hire purchase agreement - so you would not be able to sell the car until you had paid for it.

HONOUR A CHEQUE

A bank honours a cheque by paying out the money as you have requested. A cheque will only be honoured when it has been guaranteed or there is enough money in the account, or you have an agreed overdraft.

HONOURED

A bank honours a cheque by paying out the money as you have requested. A cheque will only be honoured when it has been guaranteed or there is enough money in the account, or you have an agreed overdraft.

HOW MUCH YOU BORROW

Some lenders alter the interest rate according to how much you borrow.