Basic
Sum Assured - 
This is the minimum amount which is guaranteed to
be paid when the policy matures, providing all premiums
are paid in full. Bonuses are attached to this amount
throughout the term of the policy.
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Current Attached
Bonuses -
The total amount of all annual bonuses which have been added to
a policy to date. These bonuses can not be reduced or taken away.
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Commencement Date -
The date that the policy started.
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Contract Note -
A legally binding contract between the buyer and seller of a policy.
This contract confirms the buyer's agreement to purchase the policy
at the offered price.
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Death Benefit -
The amount that will be paid out on the death of the life/lives
assured.
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Deed of Absolute
Assignment -
A legal assignment by deed, transferring the ownership of the policy
from 'seller' to 'buyer'.
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Endowment -
An investment vehicle with regular premiums, also including life
cover in the majority of cases.
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Endowment Trading
Platform -
An internet based trading platform where endowments are auctioned
to the endowment purchaser via the internet. This can be a fixed
price, but there is not normally a purchaser in place when the contract
is signed.
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IFA -
Independent Financial Adviser.
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Life Office -
Insurance company who sold the policy to you.
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Market Maker -
Institution who matches the buyer and seller of a policy.
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Market Maker Broker -
Institution who arrange to find a buyer for a policy, once an agreed
time frame has been accepted by the seller.
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Maturity Date -
The date at which the policy matures and no more premiums are payable.
This is the time when all bonuses are also paid, and the policyholder
receives the full amount owing from the life office.
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Policy Holder -
The policy holder is the current owner of the endowment
policy.
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Policy Number -
The unique number assigned to the endowment by the original life
office who issued the policy.
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Premium -
The amount which is payable, by the policyholder to the life office,
throughout the term of the policy. The frequency of this payment
can vary, but it is usually on a monthly basis.
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Reversionary Bonus -
This bonus is added to the policy annually and is a reflection of
the performance of the fund where the policy premiums are invested.
Once the bonus is added, it can not be amended or taken away from
the policy.
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Surrender Value -
The value quoted by the issuing life office to “cash-in”
the endowment from the policyholder. This is usually lower than
the locked-in value of the policy (i.e. the basic sum assured and
current bonuses to date).
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Surrender Value Quotation
Date -
This is important as the value can move on a regular basis. This
can be due to new bonus rate announcements or simply as a result
of further premiums being paid. It is important that a surrender
value is supplied to us which has been quoted in the last 3 months,
or since the most recent bonus declaration, whichever is the most
recent.
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Terminal Bonus -
This bonus is applied as a lump payment when the policy matures.
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TEP -
Traded Endowment Policy, this is a policy which instead of being
surrendered has been sold to an investor via the second-hand market. |
