Pearl - Jargon Buster

Use our Jargon Buster to cut through the complicated language financial services companies sometimes use, and find out what it really means. The list is in alphabetical order so you can scroll down to look up words and their meanings:

Whole of life
Life assurance that you pay premiums into for the whole of your life, and which pays out whenever you die. Because it also builds up a cash value, it can be used as an investment for your beneficiaries.
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Winding-up Lump Sum
A one-off lump sum paid, subject to an income tax charge, under an occupational pension scheme which is winding up when the available fund is below a prescribed threshold.

There are no age limitations on when it can be paid.

For the tax years up to and including 2011/12 the threshold equals 1% of the standard lifetime allowance. For later tax years it is set at Ł18,000 but this may change.
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With-profits policy
A type of life insurance policy, which gives you a share of the profits of a life fund, as well as giving you life insurance cover. Premiums are higher than for a straightforward life insurance policy.
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With-profits endowment
A with-profits endowment is a savings product which usually includes life cover. It pays you at least a fixed amount if you die before the policy matures or the sum assured plus any bonuses that may have been added over the term, at maturity.
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