Glossary

Beneficiary
An individual or corporation that stands to benefit financially from a will, trust, gift, insurance policy, pension, charity or bequest.

Endowment Policy
A type of life assurance policy which pays out a sum assured on the death of the life assured or at the end of an agreed term, whichever is the earlier. A traditional with-profits policy may provide sums over and above the sum assured by the addition of bonuses.

Minimum Death Benefit
The minimum amount that will be paid out to a life assurance policyholder if the life assured dies before the maturity date in a life assurance policy. In a joint life assured policy the Minimum death benefit will be paid out:

Revisionary/Regular Bonuses
Bonuses added to a traditional with-profits policy on a regular basis. These will mainly depend on the results achieved from the investments underlying the policy. Once added these bonuses can not be withdrawn provided the policy is maintained in force. If a policy is cashed early (other than by death) a reduction in bonus allocated can be made.

Sum Assured
A guaranteed amount payable under a life assurance policy (traditional with-profits) as a result of claim by way of death and may also be guaranteed at maturity. This amount is set at outset and bonuses (if any) are added to this sum.

Term of a policy
This is the number of years from the start of a policy to the maturity or expiry date.

With-profits policy
A policy in which the policyholder has, in certain circumstances, the right to amounts above the sum assured or death benefit, resulting principally from profits made on the investment of a fund.

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