Actuarial assumptions are critical estimates used to calculate the likely costs of pension schemes and life assurance policies, essential for determining contributions and benefits.
A professional who applies statistics and probability theory to advise on insurance risks, pricing of contracts, and administration of pension funds, regulated by the Institute and Faculty of Actuaries in the UK.
A transfer of the legal right under a life-assurance policy to collect the proceeds, initiated by notifying and receiving agreement from the life insurer.
Insurance against an eventuality, especially targeting events that must occur such as death. Commonly related to life assurance, it provides a guaranteed payout upon the occurrence of the insured event.
In the context of life assurance policies, the 'assured' is the individual who stands to receive the benefit of the policy upon the death of the insured or when the policy matures, ensuring a secure financial future.
Bancassurance (also known as Allfinanz) refers to the combination of traditional banking products with insurance products, such as life assurance and pensions. This practice allows banks to offer a comprehensive range of financial products and services to their customers under one roof.
An independent financial adviser (IFA) is a person or firm licensed under the Financial Services Act to provide unbiased advice on a range of financial products, including pensions, investments, and life assurance. They are distinguished by their lack of commitment to any particular financial institution, ensuring they offer 'best advice' from the entire market.
Life Assurance is an insurance policy that pays a specified amount of money on the death of the life assured or, in the case of an endowment assurance policy, on the death of the life assured or at the end of an agreed period, whichever is the earlier.
Financial planning for individuals, which involves analyzing their current financial position, predicting their short-term and long-term needs, and recommending a financial strategy. This may involve advice on pensions, the provision of independent school fees, mortgages, life assurance, and investments.
A sum added to the amount payable on death or maturity of a with-profits policy for life assurance, based on surplus or profit on the investment of life funds.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.