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With-profits
A with-profits policy (Commonwealth) or participating policy (U.S.) is an insurance contract that participates in the profits of a life insurance company. The company is often a mutual life insurance company, or had been one when it began its with-profits product line. Similar arrangements are found in other countries such as those in continental Europe. With-profits policies evolved over many years. Originally they developed as a means of distributing unplanned surplus, arising e.g. from lower than anticipated death rates. More recently they have been used to provide flexibility to pursue a more adventurous investment policy to aim to achieve long-term capital growth. They have been accepted as a form of long-term collective investment whereby the investor chooses the insurance company based on factors such as financial strength, historic returns and the terms of the contracts offered. The premiums paid by with-profits and non-profit policyholders are pooled within the insur ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The Equitable Life Assurance Society
The Equitable Life Assurance Society (Equitable Life), founded in 1762, is a life insurance company in the United Kingdom. The world's oldest mutual insurer, it pioneered age-based premiums based on mortality rate, laying "the framework for scientific insurance practice and development" and "the basis of modern life assurance upon which all life assurance schemes were subsequently based". After closing to new business in 2000, parts of the business were sold off and the remainder of the company became a subsidiary of Utmost Life and Pensions in January 2020. At its peak in the 1990s, Equitable had 1.5 million policyholders with funds worth £26 billion under management, but it had allowed large unhedged liabilities to accumulate in respect of guaranteed fixed returns to investors without making provision for adverse market changes. Many policyholders lost half their life savings, and the company came close to collapse. Following a July 2000 House of Lords ruling and the fai ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Endowment Policy
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death Death is the end of life; the irreversible cessation of all biological functions that sustain a living organism. Death eventually and inevitably occurs in all organisms. The remains of a former organism normally begin to decompose sh .... These are long-term policies, often designed to repay a mortgage loan, with typical maturities between ten and thirty years within certain age limits. Some policies also insure additional risks, such as critical illness. Policies are either traditional with-profits or unit-linked (including unitised with-profits funds). With both types of policy, the value varies with the underlying investments, but the mechanism by which growth is allocated varies. The sum insured remains payable on death or other insured events. Traditional with profits endowments There is an amount guaranteed to be paid out cal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Life Insurance
Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ... between an insurance policy holder and an insurance , insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. The benefits may include other expenses, such as funeral expenses. Life policies are legal contracts and the terms of each contract describe the limitations of the insured events. Often, specific exclusions written into the contract limit the liability of the insurer; c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Endowment Policy
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death Death is the end of life; the irreversible cessation of all biological functions that sustain a living organism. Death eventually and inevitably occurs in all organisms. The remains of a former organism normally begin to decompose sh .... These are long-term policies, often designed to repay a mortgage loan, with typical maturities between ten and thirty years within certain age limits. Some policies also insure additional risks, such as critical illness. Policies are either traditional with-profits or unit-linked (including unitised with-profits funds). With both types of policy, the value varies with the underlying investments, but the mechanism by which growth is allocated varies. The sum insured remains payable on death or other insured events. Traditional with profits endowments There is an amount guaranteed to be paid out cal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insurance Bond
An insurance bond (or investment bond) is a single premium life assurance policy for the purposes of investment. Due to tax laws they are a common form of investment in the UK and some offshore centres to avoid tax. Traditionally insurance bonds were with-profits policies and were often called ''with-profit(s) bonds''. Since the introduction of unitised insurance funds they have often been marketed as ''unit-linked bonds'' or ''investment bonds''. History Traditionally investment bonds only invested in the with-profit fund of the insurance company. However, since the late 1970s the insurers have tried to compete directly with the unit trust market in offering a wide choice of unit-linked investment funds. Geographic and themed funds for almost every sector are available. One innovation from the insurers is the distribution fund introduced by Sun Life in 1979. A distribution fund is designed to provide a regular rising income for investors. This is achieved by carefull ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Endowment Mortgage
An endowment mortgage is a mortgage loan arranged on an interest-only basis where the capital is intended to be repaid by one or more (usually Low-Cost) endowment policies. The phrase "endowment mortgage" is used mainly in the United Kingdom by lenders and consumers to refer to this arrangement and is not a legal term. The borrower has two separate agreements: one with the ''lender'' for the ''mortgage'', and one with the ''insurer'' for the ''endowment policy''. The arrangements are distinct and the borrower can change either arrangement if they wish. In the past the endowment policy was often taken as an additional security by the lender. That is, the lender applied a legal device to ensure the proceeds of the endowment were made payable to them rather than the borrower; typically the policy is assigned to the lender. This practice is uncommon now. Reasons for an endowment mortgage The customer pays only the interest on the capital borrowed, thus reducing the monthly ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insurance Bond
An insurance bond (or investment bond) is a single premium life assurance policy for the purposes of investment. Due to tax laws they are a common form of investment in the UK and some offshore centres to avoid tax. Traditionally insurance bonds were with-profits policies and were often called ''with-profit(s) bonds''. Since the introduction of unitised insurance funds they have often been marketed as ''unit-linked bonds'' or ''investment bonds''. History Traditionally investment bonds only invested in the with-profit fund of the insurance company. However, since the late 1970s the insurers have tried to compete directly with the unit trust market in offering a wide choice of unit-linked investment funds. Geographic and themed funds for almost every sector are available. One innovation from the insurers is the distribution fund introduced by Sun Life in 1979. A distribution fund is designed to provide a regular rising income for investors. This is achieved by carefull ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commonwealth Of Nations
The Commonwealth of Nations, often referred to as the British Commonwealth or simply the Commonwealth, is an International organization, international association of member states of the Commonwealth of Nations, 56 member states, the vast majority of which are former territorial evolution of the British Empire, territories of the British Empire from which it developed. They are connected through their English in the Commonwealth of Nations, use of the English language and cultural and historical ties. The chief institutions of the organisation are the Commonwealth Secretariat, which focuses on intergovernmental relations, and the Commonwealth Foundation, which focuses on non-governmental relations between member nations. Numerous List of Commonwealth organisations, organisations are associated with and operate within the Commonwealth. The Commonwealth dates back to the first half of the 20th century with the decolonisation of the British Empire through increased self-governance ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Instruments
Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership, interest in an entity or a contractual right to receive or deliver in the form of currency (forex); debt ( bonds, loans); equity (shares); or derivatives ( options, futures, forwards). International Accounting Standards IAS 32 and 39 define a financial instrument as "any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity". Financial instruments may be categorized by " asset class" depending on whether they are foreign exchange-based (reflecting foreign exchange instruments and transactions), equity-based (reflecting ownership of the issuing entity) or debt-based (reflecting a loan the investor has made to the issuing entity). If the instrument is debt it can be further categorized into short-term (less than one year) or long-term. Ty ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insurance Company
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured. The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of a payment to the insurer (a premium) in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms. Furthermore, it usually involves something in which the insured has an insurable interest established by ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insurance Information Institute
The Insurance Information Institute (I.I.I.) is a U.S. industry association which exists "to improve public understanding of insurance – what it does and how it works." Founded in 1959, the organization is based in New York City. Since 1989 the I.I.I. has held 501(c)(6) tax-exempt status (defined as business leagues, chambers of commerce, boards of trade, and the like).Insurance Information Institute Inc. (Nonprofit Explorer profile). . propublica.org. Retrieved 2017-10-21. The I.I.I. web site provides information for consumers, the media, researchers and the general public on a wide range of topics, including [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
National Association Of Insurance Commissioners
The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories. Mission and function Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. The NAIC is an Internal Revenue Code Section 501(c)(3) non-profit organization. The NAIC acts as a forum for the creation of model laws and regulations. Each state decides whether to pass each NAIC model law or regulation, and each state may make changes in the enactment process, but the models are widely, a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
