Tax Stuff
The amount of income subject to tax after adjustments, deductions, and exemptions
Taxable Income
Protects against the cost of loss
Insurance
Covers a predetermined portion of the cost of healthcare
Health insurance
Interest computed on principal for the time of the transaction. It ain't complex!
Simple Interest
The person or business that purchases an insurance policy
Policy holder
The amount of income remaining after adjustments
AGI or Adjusted Gross Income
An amount deducted from an insurance settlement: the amount of loss the insured agrees to accept
Deductible
The amount of insurance purchased
Face Amount
Person or persons designated to receive the proceeds of a life insurance policy in the event of the insured’s death
Beneficiary. Lucky.
A form filed to request payment for losses covered in an insurance policy
Claim
Items that reduce your calculated income tax; for example, credit for child care and dependent care expenses
Tax Credits
An arbitrary rate set by the taxing body (property value)
Assessed Rate
A written contract between the insurance company and the insured that explains the benefits and limitations of the protection purchased
Policy
The percentage charged to lend or borrow money
Rate
The individual or company receiving the insurance protection
The Insured
Money that builds on itself; that is, it earns money on the interest that is reinvested as well as on the original principal
Compound Interest
The amount an insurance company agrees to pay on a claim
Settlement
Payment to the insurance company for the insurance policy
Premium
Interest rate that banks charge their best or most creditworthy customers
Prime Rate
The time for which an insurance policy is in effect
Term
The initial amount borrowed or invested for a certain period of time
Principal
A term used to describe the type or amount of loss protected against by an insurance policy
Coverage
A qualifying employer-sponsored plan allowing employees to have pre-tax deductions from their paychecks deposited into a savings account that can be used only for medical expenses
HSA
Health Savings Account
The amount paid on the principal for the privilege of using someone else’s money or the amount earned on investment money
Interest
An agreement providing for the payment of a stipulated sum to one or more beneficiaries upon the death of the insured person
Life Insurance