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Glossary
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A
Active Fund Manager
An active fund manager is employed by an investment company to invest the money of unit funds. The aim of active fund managers is to outperform their chosen index by buying shares, which they think will do particularly well. They can also choose to keep a percentage of their fund in cash if they are not optimistic about the outlook for the stock market. Naturally, fund managers get paid to do this and so, charges for an actively managed fund tend to be higher than for an index-tracking fund.
Accumulated fund
The accumulated fund is calculated by multiplying the number of units allocated to the policy by the unit price ruling at the time the accumulated fund value is calculated.
Actuary
This is the person who calculates the life assurance premium and bases it on life expectation and likely investment return. He/she is also responsible for valuing the company on a yearly basis.
Additional Voluntary Contributions (AVCs)
Additional voluntary contributions are a means by which an employee who is a member of an occupational pension scheme can top up their scheme benefits at their own expense. An AVC can be part of an occupational pension scheme or may be set up as a separate scheme.
Annuity
This is a fixed amount of money paid each year until a particular event (such as a death). It might be split into more than one payment, for example monthly payments.
Approved Minimum Retirement Fund (AMRF)
An Approved Minimum Retirement Fund is one of the retirement options available to you if your pension plan is one of the following:
- Personal Pension Plan
- Company Pension Plan - Proprietary Directors only
- AVC (Additional Voluntary Contribution)
- PRSA
Upon reaching 75, your AMRF will automatically be transferred to an ARF and you will be able to make withdrawals from the capital whenever you require.
Approved Retirement Fund (ARF)
An Approved Retirement Fund is one of the retirement options available to you if your pension plan is one of the following:
- Personal Pension Plan
- Company Pension Plan - Proprietary Directors only
- AVC (Additional Voluntary Contribution)
- PRSA
B
Beneficiary
The Beneficiary is the person who receives or benefits from the investment policy.
Benefit statement
A benefit statement details your company pension plan contributions and fund value. This is sent out annually.
Bid/Offer Spread
A charge where there is a difference between the price at which you can buy and sell units. (Please note that Quinn-Life do not have a bid/offer spread).
Bid Price
The price at which the policy owner sells back units to the managers of a unit-linked fund.
C
Commission
When you buy an investment or pension policy, some companies pay a commission to the advisor or salesperson who sold the product to you. (Please note that Quinn-Life do not pay commission).
Cooling-Off Period
You may cancel your Pension / Investment policy within 30 days of the date of receiving your policy schedule, by returning to us the policy document, together with a signed and dated letter telling us to cancel your policy. We will then refund to you the premiums you have paid. If the value of your investment has fallen between the time you took out the policy and the time we receive your cancellation request, we may make a deduction from the amount payable to you. This period of time is referred to as your "Cooling-off period".
D
Death Benefit
Amount paid out on the death of the life assured to his/her personal representative.
Defined Benefit Pension
This is a type of occupational pension scheme that promises retirement benefits for members relating to their earnings at or close to retirement.
Defined Contribution Pension
This is a type of occupational pension scheme where the contributions going into the fund are defined, but the ultimate value of your benefits at retirement is not known as this depends on how your fund performs during your period of membership.
E
Early Retirement
Retiring earlier than normal retirement age.
Earned Income
Income that arises from the exercise of an employment.
Entry charge
An initial charge which is applied to your policy at inception.
Existing Fund Switch
This type of switch will move all of your current units into the new specified fund position. Future premiums will not be switched and units will continue to be bought into your current fund selection.
Exit penalty
This is a charge which is applied to your policy at the time of encashment.
Exit Tax
Exit tax is the tax deducted on withdrawal or assignment of the policy. QUINN-life will operate the deduction of tax. Tax is currently calculated at 28% of growth on all investments.This tax charge, at a rate equal to the deposit interest retention tax rate plus 3% (making a total current charge of 28%) will be paid over by us to the Revenue Commissioners.
F
Financial Services Ombudsman
The Financial Services Ombudsman provides advice to the policyholder and the insurance company and has the power to make a judgement in relation to disputed claims.
Fund Value
Number of Units x Fund Unit Price.
Future Premiums and Existing Fund switch
This type of switch will re-direct all of your current units and all of your future paid premiums into the new fund selection.
Future Switch
This type of switch will re-direct all future premiums paid into your policy to the new specified fund position. No existing units will be switched.
H
Holdings
Holdings refers to the Companies which are held within an Index.
I
IIF
Irish Insurance Federation.
IFSRA
Irish Financial Services Regulatory Authority
Illustration
An illustration outlines the projected benefits and charges available under a policy at a specific date in time; it is based on a specific growth rate.
Inception Date/Inforce Date
The effective date of the policy.
Index Tracking
An index-tracking fund aims to follow a particular index as closely as possible. It does not aim to beat the index. It invests in the companies that make up that index. Index tracking is possibly the most cost effective way to invest in the stock market.
Indexation
The automatic increases in your policy premiums each year, usually 5%.
Inflation
An increase in the price of goods and services over a period of time.
Investment Bond
A single premium investment policy.
L
Lapsed Policy
An inactive policy.
Lump-sum Premium
A one off payment paid to your policy.
M
Managed Fund
A fund where an active fund manager decides where to invest your money, for example in
property, shares or fixed interest investments etc.
Material Fact
Material facts are those facts that might influence the acceptance or assessment of your proposal. If you are in doubt as to whether a fact is material, you should disclose it. Failure to disclose such a fact or failure to amend an incorrect fact as referred to above, could result in your policy being invalidated.
N
Net Relevant Earnings
Earned income from employment or self employment less any deductions you may be entitled to such as losses and capital allowances.
NRA
Normal Retirement Age.
NRD
Normal Retirement Date.
O
Offer Price
The price at which the policyholder buys units in a fund.
Occupational pension scheme
An arrangement set up by an employer to provide retirement and/or other benefits for employees.
P
Paid-up Status
Refers to a regular savings or pension policy where the policyholder has decided to stop paying into the policy until further notice.
Pay-related social insurance (PRSI)
Individuals who earn an income pay pay related contributions to the Social Insurance Fund, and in return are covered for certain social insurance benefits.
Pension Transfer Value
The value of a pension which is being moved from one pension provider to another. It is important to see if the pension provider will charge any penalties for transferring your pension to another provider. (Please note QUINN-life do not have any pension transfer out charges/penalties).
Pensionable service
This refers to the period of time you have served within a pension policy.
Personal Pension (RAC)
The primary purpose of a personal pension is to enable you to invest in a policy to provide a pension fund for when you retire. To be eligible to take out this policy, you must be a self-employed person in receipt of earned income or an employee who is not able to join a company pension scheme.
Policy Document
The policy document is written evidence of the contract between the Life Company and the
Policyholder. The policy conditions will set out the terms and conditions of the policy.
Proposal Form
The proposal form is a legal contract. It is the means by which the individual makes an offer to the Life Company to take out a policy with them.
PRSA
Personal Retirement Savings Account.
R
RAC
Retirement Annuity Contract (Personal Pension).
S
Self-directed pension
A Self-directed pension is a type of pension which allows you to invest and manage your chosen portfolio of investments.
Settlor
The Settlor is the person who is investing and setting up the trust on behalf of the beneficiary.
Shares
A company who wishes to raise money issues shares. Unlike bonds, which are a straightforward loan, shares give you ownership of part of the company. Many shares are listed on a stock exchange, which makes them easy to buy and sell, although dealing costs may be expensive, which is another attraction of investing in a unit fund as these costs are shared with others.
This is a facility where you can switch between any of the Freeway funds which QUINN-life offer. You can switch ten times free of charge throughout the calendar year. There is a charge of €25 for each additional switch.
There are 3 different types of switches which you can complete:
- Existing Fund Switch
This type of switch will move all of your current units into the new specified fund position. Future premiums will not be switched and units will continue to be bought into your current fund selection. - Future Switch
This type of switch will re-direct all future premiums paid into your policy to the new specified fund position. No existing units will be switched. - Future Premiums and Existing Fund switch
This type of switch will re-direct all of your current units and all of your future premiums paid into the new fund selection.
T
TCA
The Taxes Consolidation Act 1997 and any legal amendments to that Act.
Trade Instruction
A trade instruction is a form which we require a client to complete when buying/selling shares, bonds etc.., through a self-directed pension/ARF.
U
Units
The notional “currency” into which each investment fund is divided, so as to allocate value to the policy when premiums are paid and when benefits are calculated.
Unit-linked
A unit-linked policy is a policy whose cash or surrender value is linked to the value of units in a fund. Unit values are not guaranteed and may fall as well as rise.
Unit Price
The value of one unit of an investment/pension fund at the time a unit price is calculated. All units are allocated to or cancelled from the policy at the unit price ruling at the time a transaction is made. The unit price ruling at any time is the most recently calculated unit price at that time.
W
Web user ID
Your Web user ID is a security code which you are given at the outset of your policy. It is used to access your account online via the “My QUINN-life online” web service. If you have opened a new policy with us recently, you will find these details on the cover letter of the documentation we posted to you with your new policy information. Your Web user ID consists of five letters and three digits.
View other divisions
- View policy details online
- Switch funds on your policy
- Change premium online
- Check policy performance
- Guide to My QUINN-life
