Replaced by personal pension plans in 1988 but pre-88 plans still run. They restrict the holder to retirement at age 60 or after. Retirement at 50 is possible only if transferring to a personal pension but the tax-free cash entitlement is calculated differently. RAPs, also called Section 226 annuities, are not subject to the earnings cap.
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Retirement date
Date an elderly patient or the patient’s spouse retired from active employment. For Medicare patients, this date is important when ascertaining the primary and secondary insurance coverage.
Retirement income policy (Life Insurance)
An endowment in which the benefit is a fraction of the life insurance policy’s face amount before the insured reaches retirement age.
Retirement options
They may include: purchase of an annuity; commutation of part of pension for tax-free lump with reduced retirement annuity; phased retirement; income drawdown; self-investment up to age 75; leave the fund fully invested until age 75.
Retro premium
Premium rate that the insurance company and the insured agree at the beginning of the pay period, but it is paid at the end of the period only if the group’s claim experience justifies it. The insurance company obtains a lower base premium at the beginning of the period and charges a retro premium retroactively at the end of the period.
Retroactive
Made effective to an earlier date.
Retroactive conversion (Life Insurance)
A conversion wherein a term life policy is converted to a cash value form, with the effective date the same as the date the policy was issued, instead of the actual date the conversion was made. In so doing, the cash value policy will be as old as the policy was.
Retroactive date
UK: Date that defines the extent of cover in time under claims made liability policies. Claims resulting from occurrences prior to the retroactive date are not covered notwithstanding the notification of claims during the policy period. Retroactive dates are commonly stated to be the inception date of the first year of cover. See ‘NOSE.
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REINSURANCE: The date on a claims made policy or reinsurance contract which triggers the beginning period of coverage for occurrences commencing prior to the effective date of the policy. A retroactive date is not required. If one is shown on a claims made policy, any claim made during the policy period on a loss that occurred before the retroactive date will not be covered. In reinsurance, losses occurring before the contract term are sometimes covered by the addition of “retroactive” coverage to the contract.
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The date that defines the extent of coverage in time under claims-made liability policies. Claims resulting from occurrences prior to the policy’s stated retroactive date are excluded.
Retroactive date (Liability Insurance)
A date that may exist in a claims made policy. If this date does exist, it represents the beginning of coverage. No claims made after this date will be honored.
Retroactive disability benefit
Insurance benefit paid from the date of disability after the insurance policy’s stated elimination period.