Definition of with profits
An investment fund with an element of life insurance. The profits in the fund are shared between the policy holders (who get 90%) and the shareholders (who get 10%). With profits funds are sometimes called 90/10 funds. These profits will be allocated to policy holders on a smoothed basis over the life of the policy by way of annual bonuses. There will also be a terminal bonus at the end of the fund's life.
See our full Online Financial Glossary