Association of International Life Offices
Representing the cross-border life industry
Guides Links Glossary Media Advisers

Glossary

Not sure about a name or phrase used in our documentation or website? Or perhaps you’ve come across some financial terminology elsewhere that you’re not familiar with? Find out its meaning in our glossary below and if there is a word not in there you think needs adding please do contact us.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

DAX

The DAX is Germany's blue-chip index, the most cyclical of the major western indices, with almost 80% of it comprising economically sensitive industries.

Death Benefit

The sum paid under an insurance policy when the relevant life assured (sole, first or last) dies.

Deemed Domicile (UK-Specific)

A legal concept for inheritance tax purposes where a non-UK domiciled person is treated as if they were domiciled in the UK at the time of a transfer. The person will be deemed domiciled if they have been resident in the UK for 17 out of the last 20 years.

Defined benefit pension

A pension arrangement where the pension benefit is known to be a stated percentage of earnings.

Defined contribution pension

A pension arrangement where the pension benefit is determined by the value of the fund at retirement.

Derivative

A derivative is the collective term used for a wide variety of financial instruments whose price derives from or depends on the performance of other underlying investments.

Discount rate

The discount rate is used to calculate how much the expected future income from an investment over a given period of time is worth right now.

Discretionary Trust

A trust in which no beneficiary has the right to an interest in possession, the trustees having the power to decide who will receive income and capital from the trust.

Dividend

A dividend is the part of a company's profits that are distributed to shareholders.

Domicile of Choice (UK-Specific)

If the domicile of the person on whom an individual under the age of 16 is legally dependent changes, he or she will acquire the new domicile automatically, which will be retained until the age of 16.

Domicile of Dependence (UK-Specific)

On reaching the age of 16, a person has the legal capacity to acquire a new domicile of choice. To acquire a new domicile of choice, the individual must leave the country of his or her current domicile and settle permanently in the new domicile of choice. A change of domicile to a new domicile of choice requires strong evidence (in addition to just living there) that the change of domicile is permanent.

Domicile (UK-Specific)

A concept of law, different from nationality or residence, which refers to the country that a person would consider his or her permanent home. For UK inheritance tax purposes, a person's domicile may be different from his or her residence.