IFA Jargon Buster

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An investment platform enabling a financial adviser to see all of a client's assets in one place. This helps advisers to provide a better service to clients by streamlining administration and enabling them to complete transactions more quickly.

In certain circumstances, these annuities can be a viable alternative to income drawdown. They do not pay out a given level of income like a standard annuity. The fund is invested in a with-profits fund and so enables an individual to benefit from any investment gains. However, if bonuses are lower than expected, income from the annuity will fall: as a result, they are only suitable for those able to take on this extra risk.

These are funds mainly run by insurance companies and mutual friendly societies. They usually invest in a wide range of assets and every year pay an annual bonus calculated on how well the fund has performed. Some of this bonus will be held back to help boost bonuses in later years where the fund has performed poorly. This is known as 'smoothing' and can help reduce volatility.

The legal termination of a pension scheme.

A life insurance policy which pays out a specified amount on the death of the life assured.

A very strict condition under a policy imposed by an insurer. A breach entitles the insurer to deny liability.

A warrant is an agreement that permits you to purchase a set number of shares in a company at an agreed fixed price and future date. On that date, you can choose whether to invest or not. If the share price of the company were trading above the price on the warrant, then you would effectively be buying the shares for less than they were currently worth.

This is usually an option offered with a life insurance policy where, should you be unable to pay your monthly premiums due to an accident or illness, your insurance provider will pay them for you.