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Absolute Assignment
A legally binding transaction on a policy/bond which transfers full and entire ownership from one party to another. Also see Deed of Assignment.

Accumulation Units (Fund Manager)
Units in a unit trust where the income from the underlying investments are reinvested in the trust rather than being paid out. This can either be in the form of enhancing the unit price or issuing additional units.

Accumulation Units (RL360° Regular Premium Products)
All RL360° regular premium savings products purchase a combination of initial and accumulation units with the premiums paid. (With the exception of LifePlan, which purchases units after the first two years premium have been paid). The Accumulation Units are usually purchased once an Initial or Establishment Period is complete. Once the initial or Establishment period is completed, clients can normally withdraw the cash value of the Accumulation Units during the payment term without incurring any surrender charges.

Allocation rate
The percentage of the premium that is invested after charges have been taken out.

Annual Management Charge (AMC)
An amount charged each year (usually expressed as a percentage of the value of the investment) to cover running costs of a policy. An AMC can also be charged by a fund manager to cover the running costs of the fund.

Investments which include: property; bank /cash deposits, structured products, company shares (equities); funds (unit trusts, investment trusts) and can be held within a policy or bond.

The third party to whom ownership has been transferred (assigned).

The transfer of ownership (entitlement) to the benefits under a policy or bond from one person to another.

The current holder of a policy who is transferring (assigning) ownership to a third party (assignee).

This is an insurance taken out against something that will inevitably happen such as death.

Authorised share capital
Total number of shares a company is authorised to issue according to its memorandum of association. Can be less than or equal to the authorised amount but not more. Insurance is the term used when something may happen. For example: house insurance policies and/or motor insurance policies are in taken out as precaution against accidents or damage that might occur.