Life Insurance Glossary

Many terms are encountered when reading documents that relate to life insurance, employee benefits and pensions.

Most often found parlance of these "terms are:

Accumulation Plan

This is a pension plan when the final benefit paid to a fund is calculated by accumulation of contributions paid by and / or participant's name and part of investment income earned by the Fund.

Annuity

This is a series of regular payments usually monthly or quarterly received in exchange for a lump sum payment. Annuities are generally bought by companies for life insurance that banks, building societies and other financial institutions can provide them, if they wish.

approved deposit fund

It is a revolving fund set up specifically to hold and invest Severance from. The fund is only available to those who retire or transfer jobs before the age of 65.

Promise Benefit Plan (defined benefit)

It is a plan where the retirement benefit is defined. A common system is based on a multiple of the employee's salary, for example, 10% of salary for each year of membership. A member with 40 years of membership would receive a pension of four times salary.

Premium

According to participants (with profits) policies of the Office life adds to the sum insured portion of its surplus cash as a bonus.

Capital Guarantee

A form of investment whereby the value of assets, plus any interest amounts are reported and are guaranteed added.

Commutation

The practice of converting a portion of a right of pension funds in a lump sum is called switching.

Deferred Annuity

It is a type of bearing arrangement is when the final payment as an annuity.

Eligible termination payments

When a member leaves the employment retirement a termination is made from. If it is "switched" in a trust fund approved a deferred annuity or another approved pension fund, the tax is deferred.

Another term that you must remember is GNG, which represents the Grand National Party. Business insurance is easy to obtain advice from us GNG. As a broker, we are independent and deal with a range of insurers. We know what policies are available, which cover they provide and what special conditions or charges may be imposed. We also know that covers are optionally available. To learn more about us, please visit us at http://www.gng.com.au .