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Glossary of terms

AMRF Approved Minimum Retirement Fund. A retirement fund arranged as an alternative to satisfying the requirement to have a guaranteed income including state benefits of €12,700 up to age 75.

Annuity A guaranteed income provided when you purchase an annuity product with your pension fund in retirement.

ARF Approved Retirement Fund. A retirement fund arranged to manage retirement assets post retirement. An alternative to a retirement annuity, an income may be drawn subject to personal income tax.

AVC Additional voluntary contributions made by an employee to supplement the contributions normally made by the employer or the employee.

Buy Out Bond or personal

retirement bond (PRB)

A retirement fund designed to hold until retirement, investments transferred from an employer/occupational pension scheme after the member has left employment.

Convertible Term


Life assurance or serious illness cover arranged for a particular period (years) that includes an option to convert your cover to another policy before the end of the term, without having

to undergo medical underwriting.

Deferred Period (eg def13, or d26)

The period under income protection cover that the insured must be at a loss of income before the benefit commences payment. (for example 4, 13, 26 or 52 weeks)


Pension /Employer


A pension plan set up for employees that can accept both employer and employee contributions and additional voluntary contributions (AVCs)

Income Protection /

Permanent Health


Usually an income payable to the policy owner in the event that they are at a loss of income due to being unable carry on their occupation (or in some cases, another occupation for

which they are considered suitable.) Clients should always advise the insurer if they change their occupation, amount or source of income.

Investment Bond A personal account set up to invest non-pension assets for capital preservation or growth.

Investment fund The collective vehicle used to invest your money within your personal investment account or pension plan.

PRSA A personal retirement savings account.

Personal Pension A pension plan arranged for individuals, often self employed or in non-pensioned employment wishing to save to retirement.

Serious Illness cover (SI


Serious illness benefit that is arranged to pay the life assurance benefit on the diagnosis of a specific illness covered by the policy rather than on death.

Serious Illness cover (SI

stand alone)

Serious Illness benefit that is arranged independently of any life assurance benefit on the policy if any.

Serious or Specified

Illness Cover (SI)

A lump sum or income payment made on the diagnosis of a specific illness or condition covered by your policy. Older policies may not have been updated with newer definitions or

illnesses currently available.

Term Assurance Life assurance or serious illness cover arranged to pay a lump sum or income benefit in the event or on diagnosis of a specified illness that is covered under the policy.

Whole of Life (WOL) A type of life assurance policy that may cover the life assured for the rest of their life without requiring additional medical underwriting evidence. Premium levels may be intended to

fund the cover on certain assumptions but may not be guaranteed to do so without an increase. It may be possible to arrange WOL cover with a guaranteed premium at an extra cost.