Glossary ​
TIP
All words use in the app is described here.
Advance ​
An advance is a loan granted by the insurer to the Subscriber, allowing them to access a portion of the savings accumulated in their contract to meet a temporary need for liquidity. The advance does not alter the operation or fiscal status of the contract: the invested capital continues to earn interest, and the contract’s original features and tax benefits remain intact.
Application Form ​
The Application Form serves as the entry document establishing the contractual relationship between the policyholder and the insurer. It contains all the necessary information to initiate the life insurance policy.
Subscription form is for financial investments.
Asset allocator ​
Defines the allocation and distributes the invested amounts among different asset classes or financial instruments according to the mandate given to them (such as funds, equities, bonds, etc.).
Synonyms :
- Portfolio Allocator
- Investment Allocator
Asset Manager ​
Assets under management (AUM) ​
Assets under management (AUM) is the current value of all the investments entrusted to a mutual fund, an exchange-traded fund (ETF), or an investment company.
Authorized Representative ​
Person or entity ​
An individual or legal entity who is authorized by the Subscriber to make investment switches (arbitrages) on a contract.
The Insurer may act as the Authorized Representative in the context of Discretionary Management. Otherwise, a third party may serve in this role.
Basis point (bip) ​
A unit of measure, equal to 1/100th of 1%, or 0.01%
Beneficiary ​
Person or entity ​
A person or entity who receives the capital at the death (or triggering event) of the insured.
Broker ​
A person or firm that places its customers’ insurance with an insurer
Synonym :
- intermediary
- dealer
- agent
- adviser
Claim ​
Payment made by the Insurer to the Payee under the terms of the Policy.
Note: In the specific case of a partial or full surrender, this is referred to as a Buy Back.
Compartment ​
Each policy may comprise several compartments, each reflecting a specific investment strategy.
This aligns with the Luxembourg legal framework, where internal funds (notably dedicated internal funds – FID – or collective funds) may be structured into distinct compartments, each representing a separate sub-section of the policy.
To manage incoming and outgoing cash flows, a pay-in/out account will always be attached to the policy.
Synonym :
- Sleeves, use most for investment
Contract ​
An agreement between an Insurer and a Subscriber. The contract may be individual or group-based, subscribed by an association for the PER (French Retirement Savings Plan).
Synonym :
- Policy
Policy is more common language, contract is more legal
Corporate Action ​
A Corporate Action is an event initiated by a company that affects its shareholders or bondholders. It usually requires investors to take notice, and sometimes to make a decision.
Three main types of corporate actions
- Mandatory Corporate Actions
Shareholders do not need to take action; the event happens automatically. Examples:
Dividends (cash or stock)
Stock splits / reverse splits
Mergers or acquisitions (when shareholders automatically receive shares or cash)
- Voluntary Corporate Actions
Shareholders choose whether to participate. Examples:
Rights issues (option to buy new shares at a discount)
Tender offers (offer to sell shares back to the company)
Dividend reinvestment plans (DRIPs)
- Mandatory with Choice
Event is mandatory, but investors can choose between several options. Example:
A company offers either cash or shares as consideration in a merger.
Why corporate actions matter
They can:
change the number or value of shares you own
affect the company’s structure
influence the stock price
require decisions that impact your investment return
Fees ​
Fees charged by the Insurer under the Contract:
- Entry fees
- Premium payment fees
- Management fees
- Switching fees
- Transaction fees
Indirect fees: asset management company fees
General account ​
Is an investment vehicle specific to life insurance and endowment contracts. It is capital-guaranteed by the insurer. A minimum interest rate is guaranteed, either annually (the usual case) or for a specific period (as was the case in the 2000s or in Germany). The general account is mainly invested in bonds to minimize risks (and thus the regular capital insurer’s burden) and to facilitate the forecasting and management of the rates of return provided.
Synonyms:
- Euro Fund
- General Euro Account
- Guaranteed Fund
General Assets: includes the various contract premiums as well as the insurer’s own funds.
Guaranteed Minimum Death Benefit (GMDB) ​
The "Guaranteed Minimum Death Benefit" (GMDB) is a feature commonly found in variable annuity contracts, ensuring that beneficiaries receive a predetermined minimum amount upon the death of the annuitant. Can be optional & included in the policy.
Insurance Product ​
Insured ​
The insured is the person to whom the events of life determine the outcome of the contract. In the case of a French capitalization contract there is no insured.
Synomin :
- Insuree : this word occasionally appears in casual usage or in non-English-speaking contexts where English is adapted, but it is not standard in insurance law or professional practice.
Insuree ​
Person ​
The insured is the person to whom the events of life determine the outcome of the contract. In the case of a French capitalization contract there is no insured.
Synomin :
- Insuree This word occasionally appears in casual usage or in non-English-speaking contexts where English is adapted, but it is not standard in insurance law or professional practice.
Insurer / Insurance Company ​
Entity ​
Bears the risk. Consequently:
- The Policyholder has a liability on the liabilities side equal to the performance of their financial instruments with respect to the Insurer on the assets side.
- The financial instruments are recorded as assets and are not held directly by the Policyholder.
Life Insurance Savings ​
Life insurance is a benefit received by a designated beneficiary upon the loss of Life of an insured person.
Mandatory premium, Single additional premium or Scheduled additional premium ​
The mandatory premium in a life insurance contract refers to the initial premium paid upon subscription of the policy.
A single additional premium refers to an extra payment made by the policyholder into an existing policy, independently of the initial or scheduled premiums.
A scheduled additional premium refers to an extra payment made at regular intervals, according to the frequency defined by the policyholder.
Mathematical Provisions ​
It refers to the estimated amounts owed by the insurer to its policyholders. The insurer must set aside these provisions as reserves in order to meet its obligations.
Multi-Fund Policy ​
Premiums are invested either in a general account or in financial market–linked products (such as bonds, equities, mutual funds, SICAVs, or real estate), known as unit-linked investments (ULs).
The insurer guarantees not the value of these units, which fluctuates, but the number of units held.
Before offering investments in unit-linked products, it is essential to determine the investor’s profile and their risk tolerance.
Partial or Total Surrender/Redemption ​
A surrender refers to the withdrawal of funds from a life insurance policy, either in part or in full.
In the case of a partial surrender, a portion of the accumulated savings is paid to the policyholder (even if the payer differs), while the policy remains active.
A total surrender, on the other hand, fully terminates the policy — the total value is paid out to the policyholder, and the contract is subsequently closed.
Mode de gestion (Management mode)
Gestion libre / Free management
Le Souscripteur gère lui-même ses investissements.
Gestion sous mandat / Discretionary management
les investissements sont gérés par un mandataire (souvent un gestionnaire de portefeuille).
Gestion pilotée / Managed portfolio (ou guided management) le Souscripteur choisit un profil (prudent, équilibré, dynamique, etc.) et la gestion est pilotée selon ce profil.
Arrérages (versements de rente)
Payee ​
Person or entity ​
An individual or legal entity who receives the funds following a Triggering Event. The payee may be:
- The Subscriber (in the case of a surrender)
- The Insured (in the case of retirement)
- The Beneficiary (in the case of death)
Synonym : Recipient
Payment Method ​
SEPA Direct Debit is used to debit bank accounts within the Single Euro Payments Area (SEPA) region. https://docs.stripe.com/api/payment_methods/object?api-version=2025-09-30.preview#payment_method_object-sepa_debit
sepa_credit_transfer, sepa_credit_transfer_instant https://docs.swan.io/topics/payments/credit-transfers/sepa/
wire_transfer
Policyholder Association ​
In the context of the PER (PERI, PERECO, PER O), it represents the interests of the Subscriber and participates in the contract.
Membership in the association is mandatory for the Subscriber (Member). In theory, membership fees are not managed by the insurer, but in practice, it is often simpler if they are.
The insurer does not manage the association.
Policyholder ​
Policyholder is a person or entity that owns an insurance policy, and is also referred to as a policy owner. A policyholder enters an insurance policy with an insurance company and is the individual to whom the policy is issued as stated in the certificate of insurance.
Policyholder ​
Person or entity ​
The subscriber of a life insurance contract is the person who signs the contract with the Insurance company (individual contract) or who signs a collective life insurance subscribed by a third party (example of an association) to the Insurance Company.
Accordingly, the Subscriber executes the subscription form.
Premium payer ​
Person or entity ​
A person or entity who pays the insurance premiums by any means (such as SEPA direct debit or bank transfer).
If the payer is neither the Policyholder nor the Insured, they are referred to as a “Third-Party Payer,” and in this case, they have no rights over the contract.
Premium Payment Form ​
Each additional contribution (payment) must be accompanied by a Premium Payment Form, specifying the payment amount, the purpose and allocation of the funds, the identity of the payer, and the source of the funds.
Depending on the circumstances, supplementary documentation may be required to comply with regulatory and anti–money laundering requirements.
If a premium payment does not correspond to a premium payment form, the payment amount is placed in a suspense account until it can be matched with the appropriate form.
Premium ​
Pay In ​
The amount charged by an insurer or reinsurer as the price of granting insurance or reinsurance cover, as stated before or after the subtraction of brokerage and other deductions.
This payment is always credited to the pay-in/out account attached to the policy before being reallocated to its designated compartment.
Price / Net Asset Value (NAV) ​
The value of each share in a fund in terms of the value of its underlying holdings. NAV is calculated as the total value of a fund (stock plus cash and accruals, less fees) divided by the number of issued shares.
All exchange traded funds (ETFs), are bought and sold at their market prices, which may be at a premium or discount to NAV.
NAV as of : date of calculation
Prospective client ​
A potential Subscriber, from the Broker’s point of view.
This term refers to a person or legal entity in relation to a contract that may potentially be signed, meaning that the same individual or legal entity can be a Subscriber for an existing contract and also be considered a Prospective client for another.
Regulator ​
Life insurance is an activity regulated by law. The regulator/supervisor of the insurance sector is the Prudential Supervision and Resolution Authority (ACPR). The European body EIOPA is only an advisory body, unlike the banking sector which is regulated at the European level by the European Banking Authority (EBA).
The insurance company is subject to specific insurance accounting rules as well as Solvency II requirements. It must therefore regularly submit to the regulator a number of reports, including the Quantitative Reporting Templates QRT.
Right of withdrawal ​
The policyholder has a right of withdrawal allowing them to cancel the policy within 30 days of receiving the policy documents.
Single-Fund Policy ​
Premiums are invested exclusively in a general account.
The main feature of a general account is that the capital is guaranteed at all times, and the interest earned each year is permanently secured.
Solvency II ​
Solvency II is the European regulatory framework that has applied to insurance companies since 2016. It aims to strengthen the financial soundness of insurers, harmonise supervisory practices across the European Union, enhance the comparability of financial and regulatory disclosures, and provide better protection for policyholders.
The directive is structured around three complementary pillars:
Quantitative Requirements Insurers must maintain adequate capital to cover the risks to which they are exposed. Two key capital thresholds are defined:
the Solvency Capital Requirement (SCR);
the Minimum Capital Requirement (MCR).
Qualitative Requirements (ORSA) These relate to governance, risk management, and internal controls. Each insurer must demonstrate its ability to identify, measure, and manage its risks, notably through the Own Risk and Solvency Assessment (ORSA) process.
Transparency and Reporting Insurers are required to disclose regular information to supervisory authorities (ACPR, EIOPA) and to the public, particularly through:
Quantitative Reporting Templates (QRTs);
the Solvency and Financial Condition Report (SFCR).
This framework promotes a risk-based approach to supervision and contributes to the harmonisation of prudential standards across the European insurance market.
EIOPA (European Insurance and Occupational Pensions Authority) is the European body responsible for developing, coordinating, and supervising the implementation of the Solvency II framework across Member States.
Suspense Account ​
In accounting, a suspense account is a temporary holding account used to record accounting entries pending final allocation or clarification before being posted to their definitive accounts.
Switch transaction ​
Fund Switch refers to the operation of transferring all or part of the amounts invested from one investment vehicle to another within the same insurance contract. This allows the policyholder to adjust the allocation of their savings according to market conditions, investment objectives, or risk profile. Fund Switch can be used to seek better returns, reduce risk, or respond to changes in personal circumstances.
Opération d’arbitrage / Fund Switch
Trading date & Settlement date ​
Lors d’un achat ou vente de titres, nous distinguons 2 dates. Date de valeur : c’est la date d’exécution de notre ordre d’achat ou vente d’un titre. Les titres ne nous appartiennent pas officiellement mais les variations de prix sont à notre charge. Date de règlement : c’est la date à laquelle la transaction financière est effectivement finalisée, c’est-à -dire que les titres sont livrés et les fonds transférés (règlement contre titre / delivery vs paiement). Les titres nous appartiennent officiellement. La date de l’échange de l’argent contre des titres est la date de règlement. Par défaut en 2025 c’est en J+2 en Europe, J+1 aux USA en 2025, l’Europe va s’aligner sur du J+1. Sur les opérations monétaires, on parle de J+0 (règlement dans la journée du trading). Le calendrier utilisé est celui des jours ouvrés de bourse (Business day) : les week-ends ne sont pas comptés et certains jours peuvent être “fermés” alors que travaillés par la population active. ex : calendrier Euronext https://live.euronext.com/fr/resources/trading-hours-holidays
Triggering Event ​
Partial or full surrender: Paid to the Policyholder (as a lump sum).
Death: Paid to the designated Beneficiary (as a lump sum or as a retirement annuity if the reversion option is selected).
Retirement: Paid as a lump sum or as a life annuity.
A loan advance merely pledges the policy as collateral and has no other impact.
Unit Linked Fund ​
A share, stock, or financial instrument (equity, bond, mutual fund, etc.) within a contract. They are defined in the Insurance Code, Article R131-1 (French Regulation).
They are called unit-linked because they represent a number of units rather than a value in euros (as with the Euro Fund); their valuation fluctuates according to market movements.
Wealth manager ​
A wealth manager is a financial advisory professional responsible for assisting clients — individuals, families, and business owners — in the structuring, growth, and transfer of their wealth.
Their role is to analyse the client’s financial, tax, and estate situation in order to provide tailored solutions in investment management, insurance, estate planning, and tax optimisation, aligned with the client’s short-, medium-, and long-term objectives.
Their scope of expertise extends well beyond the management of financial portfolios, such as securities accounts or life insurance policies.