Glossary| Zurich Life

Accidental Death Benefit	Benefit payable on death in circumstances where the cause of death was accidental.
Accrued charges	If the basis of cover is single or joint life and the number of units are insufficient to cover charges, then these will be carried forward (accrued) until the number of units is sufficient. For a dual life policy, if the units in the first or second life's unit account are insufficient, then these will be carried forward (accrued) until there are sufficient units in the relevant unit account to cover them.
Accumulated contributions	The total of contributions paid by a member of a pension scheme during a given period, enhanced where appropriate by interest. In a money purchase or defined contribution scheme the term may also include the employer's contributions.
Active member	A member of an occupational or company pension arrangement who is at present accruing benefits under that scheme in respect of current service.
Actuarial assumptions	The set of assumptions as to rates of return, inflation, increase in earnings, dividend increases, mortality, etc. used by the actuary in an actuarial valuation or other actuarial calculations.
Actuarial basis	Commonly used to mean valuation method and/or actuarial assumptions.
Administration charge	A charge made on most contracts to cover the costs of administering the contract. Usually a set monetary amount, deducted at regular intervals e.g. monthly. Often called a Policy Fee.
Age admitted	The supply of original evidence of age by the policyholder in a form acceptable by the life office - passport or birth certificate.
Age attained	Current age.
Allocation rate	With certain products, a certain percentage (the allocation percentage) of each contribution is used to purchase units for the policyholder.
Annual Management Charge (AMC)	A charge made on the units held under a unitised policy, usually made to cover the costs of managing the investment comprising the fund. The charge is usually expressed as a percentage of the value of the fund. See also management charge.
Annual report	The means by which the trustees of a company pension scheme communicate financial and other information about the scheme to members, employers and other interested parties.
Annuitant	An individual who is in receipt of an annuity.
Annuity	An amount paid periodically by a life office to an individual (the annuitant) in respect of a lump sum paid to the life office, or resulting from a contract held with the office.
Application form	The application submitted to the company by an individual or group of individuals proposing to take out a contract with the company. See also proposal form.
Auto-Enrolment (AE)	Auto-enrolment is a retirement savings system for employees who haven’t joined or don’t have access to a workplace pension scheme.
Approved Retirement Fund (ARF)	An ARF is a personal retirement fund where you can keep your money invested after retirement. You can withdraw from it regularly to give yourself an income in retirement, subject to income tax, PRSI and USC.
Asset	An asset is an item or resource that a person or company owns, which is regarded as having value. The term is often used to describe something you can invest in.
Asset management	Asset management involves actively managing a portfolio of assets for clients like global equities, bonds, and property to generate long-term growth.
Assignee	The person to whom the ownership of an asset (e.g. a policy) is transferred.
Assignment	A transfer of ownership.
Assignor	The person who assigns an asset.
Additional Voluntary Contribution (AVC)	Additional contributions which can be made to a company pension scheme to increase potential benefits.

Cancellation of units	On a unit-linked contract charges are made to cover the cost of the benefits provided. These charges can be collected by cancelling units of the equivalent value.
Capital growth	The increase in the value of an asset or investment over time. In other words, it’s the profit made when an asset (like shares, property, or funds) becomes worth more than its original purchase price.
Capital security	The protection of the original amount of money you invest, also known as your principal. Investments or products that offer capital security are designed to ensure you don’t lose your initial investment, even if market conditions fluctuate.
Charges	These are deductions made from policies (usually by cancellation of units on unitised policies) to enable the company to cover contract expenses.
CII	Chartered Insurance Institute.
Claim	The request for payment of the policy benefits.
Clawback	When indemnity commission is paid but not earned as contributions ceased before the end of the initial period of the contract, a recall of the unearned commission is referred to as clawback.
Commencement date	The date the insurance company's liability for a risk policy comes into force.
Commission	The money a company pays an intermediary or advisor for selling their product. The amount paid is usually related to the level of contributions and term of the policy.
Commission sacrifice	Where an intermediary chooses not to take some or all of the commission due. This often results in enhanced contract terms for the policyholder.
Company paid pension	A pension plan that the employer has established under trust on behalf of their employees (see Eligibility Requirements) subject to Revenue limitations. The benefits could include: retirement benefits, death benefits and leaving service benefits.
Commodity	A basic good or raw material that is interchangeable with other goods of the same type. Commodities are standardised and traded on exchanges. Examples include oil, gold, wheat, coffee, and natural gas.
Consumer Price Index (CPI)	The measurement of the average change over time in the prices of household goods and services over time.
Contribution	A single amount or regular installment to be paid for a contract. See also Premium.
Cooling off notice	A notice issued to a policyholder at policy issue stage advising of the cooling off period.
Cooling off period	A statutory period of time immediately following the purchase of a life policy when the policyholder may elect to change his mind and cancel the contract. Does not apply to all policy types.
Critical illness benefit	Benefit available with certain product types which provide a lump sum to be paid out in the event of the life assured suffering or contracting an illness specifically covered by the policy. See also serious illness.

Death benefit	The amount payable under a contract on death during the term of the contract. See also sum assured and life cover.
Decreasing term assurance	Life assurance where the sum assured reduces gradually down to zero at the end of the term.
Default Investment Strategy (DIS)	An automatic mechanism that gradually transforms an individual's pension fund from a higher-risk portfolio to a lower-risk portfolio as they approach retirement.
Deferred period	If a life insured becomes totally disabled as a result of illness or injury during this period of time. The deferred period is specified in the policy document.
Defined Benefit (DB)	A company pension arrangement where the benefit payable under the scheme is ‘defined’ in advance of the funding for the scheme.
Defined Contribution (DC)	Benefits are built up directly from the contributions paid i.e. employee and employer contributions plus investment earnings. In a money purchase contract, the contributions are subject to limits and the benefits are variable as compared to a defined benefit scheme where the converse applies. See also money purchase.
Dependant	A person who, when a benefit becomes payable from your pension arrangement (i.e. on death or retirement), is financially dependent on the life assured.
Discharge	Lifting the life office of further obligation in return for payment under a policy.
Diversification	Means spreading your money across different types of assets, industries, or geographic regions. The main purpose is to reduce risk—so if one investment performs poorly, the others can help balance out the overall result.
Domicile	The country in which a person has, or is legally deemed to have, his permanent home.
Dual life cover	A type of life insurance policy that provides protection for two lives, usually two people who are financially connected—such as spouses or business partners.

Managed fund	An investment fund where a professional fund manager or team makes decisions about how to invest the money on behalf of investors.
Management charge	A charge made on the units held under a unitised policy. Usually expressed as a percentage of the value of the fund. See also Annual Management Charge (AMC).
Market index	A measurement that tracks the performance of a group of selected investments, such as shares, bonds, or other securities.
Multi Asset Portfolios (MAPs)	An investment strategy that combines different types of assets—such as stocks, bonds, property, and cash—within a single portfolio.
Mutual funds	Investment vehicles that pool money from many investors to buy a diversified portfolio of assets, such as stocks, bonds, or other securities.
Material fact	A fact which would influence an underwriter when deciding terms for a risk.
Maturity date	The date at which the pre-selected investment term of a policy ceases.
Maturity value	The value of the policy at the maturity date. This will include any bonuses that may be applicable on maturity.
Maximum life cover	The maximum amount of life cover benefit that may be included in a pension arrangement as per the guidelines outlined by the Revenue Commissioners.
Maximum pension	The maximum amount of pension that may be received by an individual in respect of a company paid pension scheme as per the guidelines outlined by the Revenue Commissioners.
Medical Examiner's Report (MER)	A full physical examination carried out on the applicant by a doctor.
Microscopic Urinalysis (MSU)	Examination of a drop of urine under high and low power for the presence of abnormalities.
Money purchase	Benefits are built up directly from the contributions paid i.e. employee and employer contributions plus investment earnings. In a money purchase contract, the contributions are subject to limits and the benefits variable as compared to a defined benefit scheme where the converse applies. See Defined Contribution.
Morbidity charge	Charge made to cover the expected cost of benefit payments due to illness or disability (the cost of a PHI benefit).
Morbidity rate	A probability that the benefit due to illness or disability will be payable within a specified time period. Used in calculating the morbidity charge.
Mortality charge	Charge made to cover the expected cost of benefit payments due to death.
Mortality rate	A probability that the benefit due on death will be payable within a specified time period. Used in calculating the mortality charge.

Paid-up policy	A policy on which the premiums are no longer being paid and will not be recommended before maturity.
Pension policy	A policy established for the purposes of saving money to be used to fund for retirement. These policies are governed under specific parts of legislation.
Pensionable earnings	The earnings which are used for calculating contributions to a company pension scheme.
Pulmonary Function Test (PFT)	A test to determine the respiratory function.
PHI	Permanent Health Insurance.
Private Medical Attendant's Report (PMAR/PMA)	A report obtained from the applicant's own doctor. The report is completed from information held in the applicant's medical records.
Policy	A contract of insurance.
Policy anniversary	The anniversary of the commencement date of the policy.
Policy certificate	An integral part of the policy document which sets out the contributions due and benefits payable.
Policy commencement date	The date the insurance company's liability for a policy comes into force.
Policy document	A legal document setting out the terms and conditions of the contract.
Policy fee	See administration charge.
Policy owner	The person who owns the policy and controls its use. See also policyholder.
Policy start date	See policy commencement date.
Policyholder	The person who owns the policy and controls its use. See also policy owner.
Portfolio	The collection of financial assets and investments owned by an individual or institution. These assets can include stocks, bonds, cash, property, mutual funds, and other investment products.
Premium	A single amount or regular installment to be paid for a contract. See also contribution.
Proposal form	The application submitted to the company by an individual or group of individuals proposing to take out a contract with the company. See also application form.
PRSA	Personal Retirement Savings Account.
PRSA AVC	A PRSA set up by a member of a pension scheme to receive his additional voluntary contributions.

Savings plan	A contract designed to help individuals save.
Self employed pension	A pension policy set up by a self-employed person and assured under Sections 784 & 785 of the Taxes Consolidation Act 1997.
Serious illness benefit	Benefit available with certain product types which provides a lump sum to be paid out in the event of the life assured suffering or contracting an illness specifically covered by the policy. See also critical illness benefit.
Single life	A policy where the death benefit is payable on the death of the life assured.
Single life annuity	An annuity that has been set up on the basis of an individual only, with no provision made for a spouse or dependants.
Smoker status	Some contracts offer different premium rates for smokers and non-smokers.
Spouse's pension	A pension payable under a company pension scheme to the spouse of the individual in the scheme following the death of the individual in the scheme. The maximum amount payable is 100% of the member's expected pension at the normal retirement age.
Start date	See commencement date.
Sum assured	The amount payable under a policy on death. See also life cover and death benefit.
Sum at risk	The amount, if any, in addition to the bid value of the fund that will need to be paid out on a death claim.
Surrender	The realisation of the benefits of a contract before it becomes a claim by maturity or death.
Surrender penalty	The early surrender of a policy can result in less than the bid value of the units held as a result of outstanding charges.
Surrender value	The cash value of the policy at any time before death, maturity or normal retirement age. It will be calculated on a basis stipulated in the policy document.
Switching	A facility offered under most unit-linked contracts to switch some or all of the units already allocated from one fund to any other fund allowable under the terms of the contract. A small charge may be levied.

Beneficial owner	Person who enjoys the benefits of ownerships of an asset.
Beneficiary	The person to whom the benefits from the policy are paid.
Bid / Offer spread	The difference between the bid price and the offer price for a unit-linked fund. This is usually 5%.
Bid price	The price at which units are sold/encashed back to the company.
Bid value	The number of units held within a fund multiplied by the bid price of the fund.
Bond	A single premium policy.
Buy-out-Bond	A policy purchased by the trustees of a pension scheme in the name of the member in lieu of pension contributions invested before leaving a company's service.

Early retirement	The commencement of retirement benefits prior to the normal selected retirement age.
Economic loss	An offer of life assurance which sets out the terms upon which an insurer is prepared to accept the risk.
Electrocardiogram (ECG)	A recording of the electrical activity of the heart on a moving paper strip.
Echocardiogram	The study of the movements of the heart by use of ultra-sound imaging.
Effective date	The date on which a transaction is deemed to have been effective.
Eligibility requirements	The conditions laid down by an employer which must be met before an individual can become a member of a pension arrangement.
Emerging markets	Countries or regions whose economies are in the process of rapid growth and industrialisation, but are not yet fully developed.
Endorsement	Document which evidences an alteration to an existing policy. Once issued it becomes part of the overall policy document.
Equity markets	Equity markets allow investors to purchase ownership in companies through shares.

Fixed Income Bond	A type of investment where you lend money to a government, corporation, or other entity for a set period of time. In return, you receive regular interest payments (the 'fixed income') and get your original amount back when the bond matures.
Final pensionable earnings	The earnings upon which an individual's benefits from a company sponsored pension arrangement will be calculated. This will either be pensionable earnings at a particular date or averaged over a number of years.
Final remuneration	The earnings that the Revenue will use for calculating the maximum benefits that can be received by an individual at retirement from a company sponsored pension arrangement.
Fund	See investment fund.
Fund price	The value of a single unit or share in an investment fund. The fund price is usually calculated daily based on the total value of the fund’s assets minus any liabilities, divided by the number of units or shares outstanding.
Fund value	The total worth of an investment fund at a particular point in time.

Grantee	The person(s) to whom a policy is granted, and who is the original legal owner of the policy.
Group	A number of policies established in respect of a specific group of individuals i.e. members of a group pension scheme.
Group PRSA's	Group PRSA's provide the functionality for PRSA's, designed to be owned by individuals, to be administered on a group basis through salary deduction, reducing the administration burden on employers.
Growth rate	A percentage at which an investment is expected to increase in value.
Glucose Tolerance Test (GTT)	A test carried out to check for diabetes.
Guaranteed insurability option	A feature in some life insurance and health insurance policies that allows you to increase your coverage amount in the future—without having to provide new medical evidence or undergo health checks.

IFSRA	Irish Financial Services Regulatory Authority.
IIF	Irish Insurance Federation.
III	Insurance Institute of Ireland.
Illustration	An example of the benefits available under the policy at the selected date, projected at a certain growth rate.
Increment	An increase in the benefits provided under a policy achieved by increasing the regular contribution or paying an additional single contribution. The increment will normally have the same maturity date as the original benefit.
Indemnity commission	Commission paid in advance at policy issue stage but it has not been earned yet. Renewal commission becomes due at the end of the initial period.
Indexation option	An option whereby the life cover or the contribution can be increased each year, for example, in line with the Consumer Price Index or a fixed percentage.
Initial commission	This commission is payable in respect of contributions due in the initial period.
Initial period	The time period (usually expressed in months) for which contributions earn initial commission.
Investment fund	A fund managed by the life office that policyholders can choose to invest their contributions in. A range of such funds is usually offered.

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Life Insurance

Lapsed policy	A policy under which the policyholder has stopped paying contributions and which has no value.
Last survivor	A contract dependent on two lives (usually husband and wife) where the benefit is paid on the second death, or paid until second death if a last survivor annuity. This is sometimes referred to as Joint Life (second death).
Late retirement	The commencement of retirement benefits after the normal selected retirement age.
Leaving service	An employee leaving the employment of their employer.
Liver Function Test (LFT)	A test to determine the liver function.
LIA	Life Insurance Association.
Life assured	The person on whose life a policy is written.
Life cover	The amount payable on death during the term of the contract. See also sum assured and death benefit.
Life assurance	Life assurance is insurance against an event that will happen eventually. Therefore, with life assurance payment will be made at the end of the policy when the life assured dies.
Life insurance	Life insurance is protection for the term of the insurance cover. If you die during the term of the policy, the insurance company will pay a tax-free sum to your beneficiaries.
Lump sum	A single payment of money, rather than a series of smaller, regular payments. In insurance and investments, it usually refers to a one-time payout made to a policyholder or beneficiary.

Net relevant earnings	The earnings upon which the tax relief on contributions to a pension arrangement will be calculated.
NRA	Normal retirement age.
NRD	Normal retirement date.

Occupational rating	An extra premium charged due to the Life Assured being a greater than normal risk to the company due to their occupation e.g. a deep sea diver.
Offer price	The price at which units are sold by the company.
On risk	When a contract of insurance begins and the insurer assumes responsibility for the risk insured against; the point from which the insurer agrees to provide cover.
Open market option	The right to transfer benefits at retirement from a pension policy to an insurance company of the individual's choice to provide an annuity or other relevant retirement benefits approved under relevant legislation.

Redirection	A facility offered under most unit-linked contracts to invest future regular contributions in a different fund than previously, regardless of whether or not the existing units are also switched to that fund.
Reinsurance	When a life office passes on some, or all of a risk to a reinsurance company.
Reinstatement	If contributions have ceased under a policy or been reduced, then the plan may be reinstated subject to the conditions set out in the policy document.
Renewal commission	This is paid after the end of the initial period as and when future contributions are paid. It is usually a percentage of the contribution.
Renewal date	A date on which a contribution is due as set out in the policy schedule.
Renal Function Test (RFT)	A test to determine the renal (kidney) function.
Return	The profit or loss made on an investment over a period of time.
Risk	An insurer's liability in the event of a claim.
Risk commencement date	The date the insurance company's liability for a risk comes into force.
Risk start date	See risk commencement date.

Tax free lump sum	The amount of tax-free cash that an individual is entitled to take from the proceeds of a pension policy calculated in accordance with Revenue limits.
Tax relief	A reduction in income tax liability resulting from incurring specified expenditure.
Term	The period under a policy between commencement of risk and maturity.
Term assurance	A contract which pays an amount only if death occurs within a specified period (the term).
Top-up	Where a single contribution is added to a plan after outset.
Transfer value	The money value that is placed on retirement benefits if they are being moved from one scheme to another. Required usually in respect of an individual who is leaving service and may wish to transfer his retirement benefits to another employer's pension fund.

Underlying investments	Assets held by an investment fund.
Underwriting	The process of assessing risk.
Unit	A share in a unitised investment fund.
Unit growth rate	On a unitised contract this is the rate at which the unit price increases over time.
Utmost good faith	A principle underlying all insurance contracts, that the proposer has a duty to disclose all material facts of which he is aware.

Waiver of premium benefit	This benefit allows for the payment of contributions under a policy to be made by the insurance company during periods of absence of work due to illness or injury to the insured life, subject to certain conditions.
Whole of life assurance	A contract where benefits are paid on death whenever it occurs.