The FinanceTalking Online Financial Glossary

Definition of with profits

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.



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