- B
- BACS
- Bank Automated Clearing Services (BACS) is a United Kingdom scheme for the electronic processing of financial transactions in GBP only. Payments take approximately 3-5 working days to complete.
- Bare Trust
- A trust created for beneficiaries where the beneficiaries cannot be changed once named and have a right to the income and capital of the trust once they reach the age of 18 years. With a pension, this is usually only used to make the payment of pension death benefits to a beneficiary who is under the age of 18 at the time the policyholder dies.
- Benefits
- A term for the proceeds paid from a pension. These are typically paid in the form of a lump sum or income. Benefits can be lifetime payments from a pension to the policyholder or a payment after death to beneficiaries.
- Bid/Offer spread
- A phrase sometimes heard in connection with investments where there is a difference between the price used to buy units in the investment and the price used to sell the same units.
- Bond
- A policy where a policyholder (customer) pays a single premium and the bond provider will pay the sum assured (or death benefit) after the death of the policyholder. Bonds can be held within a pension policy and used to hold investments. Bonds can be popular with non-UK resident clients due to the tax treatment of the investments held within the bond.
Is there jargon we use that you don’t fully understand? Please email us at info@ifglpensions.com and we will add the word to our Jargon Buster.