Glossary

Below is an explanation of some of the terms that we use in this website which may be unfamiliar to you:

  • Accessibility – Accessibility is the ability of impaired or debilitated persons to obtain services or perform actions needed for every day living.
  • Aging – Aging is not just getting older. It is a complex social, political and economic phenomenon that impacts the individual and encompasses all aspects of society.
  • Annual Management Charge (AMC) – A charge made over the year which includes the fees for the fund manager, the custodian bank and third party administrators. It is deducted on a daily basis from the entire fund through an adjustment in the unit price.
  • Appointed Actuary – An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries advising us on all aspects of financial condition and risk management within our business.
  • Baby Boomers – “Baby Boomer” is someone who was born between the years of 1946 and 1964.
  • Birthday Units – Additional fund units allocated to Planholders on their birthday according to an actuarial calculation. These units arise from the redistribution of the investment funds held by Planholders who have not survived.
  • Capital Content – The payments from a Longevity Income Plan are regarded as being made up of two parts for tax purposes. The first part is ‘capital content’ which is looked upon as a return of the Planholder’s original investment and is currently not subject to US income tax. The second part is the ‘interest’ element and because this is classified as income, it is subject to US income tax.
  • Care Giving – Care Giving is the provision of assistance to people who have difficulty properly caring for themselves.
  • Death Benefit – If a Planholder dies before receiving any payments or the full value of their original investment back in annual payments, we’ll pay the difference to the Planholder’s estate, assignees or trustees. This is known as a Death Benefit.
  • Disability – Disability is a mental or physical or difficulty that limits an individual’s ability to perform every day tasks.
  • Elder Law – Elder law is a sub-set of the laws of this country that pertain to the rights and treatment of persons of retirement age.
  • Hospitals – Hospitals are institutions designed to provide medical care for injured, sick or incapacitated individuals.
  • Income Start Date – The date Planholders receive their first annual Plan payment. This will be their 75th or 80th birthday, depending on which Vesting Age they choose.
  • Inheritance Tax (IHT) Planning – Financial planning to protect your assets from being liable to inheritance tax.
  • Long Term Care – Long term care is the provision of support services for those individuals that have difficulty carrying out daily living skills; dressing, bathing, eating, cleaning, ect.
  • Longevity – A term that means long life. We especially use this when it concerns people living longer.
  • Longevity Insurance – A single premium investment designed to provide a rising income for up to 20 years, starting from either age 75 or 80.
  • Medicaid – Medicaid is a federal health insurance program that is administered by states.
  • Medical Insurance – Medical Insurance is a product that you pay for, and is designed to provide insurance coverage should you be in need of medical services.
  • Medicare – Medicare is a health insurance program that is for people over the age of 65, and is administered by the federal government.
  • Mortality Uplift – The unique feature of the Longevity Income Plan. Every year, the value of investments held by Planholders who have not survived is redistributed to all other Planholders as ‘Birthday Units’. The effect of the Birthday Units is to further enhance the growth potential of Planholders’ investments, resulting in what we call a ‘mortality uplift’.
  • Parkinson’s Disease – Parkinson’s disease is a neurological disorder that effects the nervous system and afflicts just one million people in the United States.
  • Prescription Drugs– Prescription drugs are substances that are regulated by state and federal authorities and must be sold to a person who has been written a prescription for them by a licensed person.
  • Purchased Life Annuity – An annuity is a contract with a life company where you pay in a lump sum in exchange for a regular income, either for life or for shorter periods. A purchased life annuity is purchased from personal assets or ‘capital’ rather than from the proceeds of a pension scheme. This means that a portion of the income from the purchased life annuity is exempt from income tax, being treated as a return of capital.
  • Retirement – Retirement is the stage of a person’s life where they will no longer attend work, on a regular basis for pay.
  • Vesting Age – The age at which a Planholder opts to begin receiving payments under the Longevity Income Plan. Planholders may choose a Vesting Age of either 75 or 80, which cannot subsequently be altered.