Glossary

Arbitrage/Switch: A transaction buying and selling investment fund units making up the policy, carried out by VITIS LIFE S.A. at the policyholder’s request.

Beneficiary: The person in whose favour the insurance benefits are stipulated. The beneficiary of a supplementary death insurance is the same as the beneficiary of the principal insurance in the event of death.

Capital At Risk: Difference between the insurance benefits paid on the death of the insured if the latter dies a death covered by the supplementary death insurance and the reserve of the life insurance policy.

Capital Insured: The insurance benefits paid on the death of the insured due to an insured risk occurring. The capital insured at a specific moment corresponds to the reserve of the life insurance policy plus the capital at risk.

Collective Investment Fund: Internal investment fund open to a multitude of life insurance policies.

Commissariat Aux Assurances (CAA): Public body under Luxembourg law tasked with monitoring the insurance sector and insurance broker sector in accordance with the stipulations of Luxembourg legislation and regulations.

Currency: The reserve, liquidation value and insurance benefits are valued in euros.

Custodian Bank: The bank with which VITIS LIFE S.A. deposits the assets which comprise the life insurance policy. For the dedicated or internal collective funds, this is also the bank with which VITIS LIFE S.A. deposits the assets or financial instruments which comprise each dedicated or internal investment fund. For each dedicated or internal collective fund the bank allocates VITIS LIFE S.A. a specific bank account or sub-account in which VITIS LIFE S.A. has to deposit the assets or financial instruments relating to this fund.

Dedicated Investment Fund: Internal investment fund, whether or not direct line, not offering a guaranteed return and in principle acting as a support to a single life insurance policy. The minimum premium to make an investment in an internal dedicated fund is 250,000 EUR.

External Investment Fund: Fund in the form of an Undertaking for Collective Investment in Transferable Securities (UCITS).

Insurance Benefits: The amount payable or the service to be provided by VITIS LIFE S.A. when executing the life insurance policy.

Insurance Proposal: A form from VITIS LIFE S.A. to be filled in by the potential policyholder. The aim is to provide information for VITIS LIFE S.A. on the nature of the operation and the circumstances to help VITIS LIFE S.A. assess the risk. The insurance proposal does not oblige either the potential policyholder or VITIS LIFE S.A. to conclude a policy.

Insured: The person on whose life rests the risk of the occurrence of the insured event and whose death leads to the payment of the insurance benefits.

Internal Investment Fund: All separated assets with VITIS LIFE S.A., collective or dedicated, whether or not offering a guaranteed return. The financial assets of these funds, although belonging exclusively to VITIS LIFE S.A. are subject to separate accounting.

Investment Fund: Fund investing in various asset classes (equities, bonds and/or real estate). There are several forms of investment fund : external, internal, collective and dedicated.

Life Insurance Policy: Individual variable capital life insurance policy, with lifetime duration and offering the possibility of taking out supplementary death insurance. The policy is tailor made to correspond to the requests and needs of the policyholder.

Liquidation Value Of The Policy: The selling value of the investment fund units less possible external fees linked to disinvestment transactions.

Maturity Of Policy: Date from which insurance benefits are due to the beneficiary of the policy. The policy’s maturity corresponds to the death of the insured.

NAV: The net asset value of an investment fund unit at a specific moment.

Policyholder: The person who takes out the life insurance policy with VITIS LIFE S.A.

Premium: The payment made by the policyholder in consideration of the undertakings by VITIS LIFE S.A.

Reserve: The reserve corresponds to the valuation at a given date of the investment fund units underlying the life insurance policy.

Risk Premium: The premium which VITIS LIFE S.A. periodically takes from the reserve to finance  the supplementary death insurance.

Supplementary Death Insurance: Insurance aiming to provide the beneficiary with an extra allowance in addition to the main insurance in the case of the death of the person(s) insured (except for excluded cases).

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