Ch. 9 Terms
the contract between an insurance company and the insured individual
Policy
the amount you earn before taxes and other payroll deductions
Gross Income
the average cost of the basic goods and services needed to sustain a certain standard of living
Cost of Living
the process of setting money aside to increase wealth over time for long-term financial goals, such as retirement
Investing
a person who relies on someone for financial support. This is also a tax write-off
Dependent
the amount of money you will pay out of pocket before the insurance company will make a payment
Deductible
a fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly
Salary
when someone spends so much of their income on the costs of homeownership that they struggle to reach other financial goals
House Poor
a financial market that trades shares of ownership of public companies
Stock Market
BLANK are those designated by the policyholder to receive the death benefit of a life insurance policy
Beneficiaries
the amount of money paid for an insurance policy
Premium
an official IRS inspection of a tax return to make sure the income and deductions are accurate
Audit
a mortgage with a set interest rate for a set number of years
Fixed-Rate Mortgage
a legal document listing how a person wants their assets distributed after their death
Will
the smallest amount that employers can legally pay their employees per hour of work is called BLANK
Minimum Wage
optional extended liability coverage that can be added to auto and homeowners policies
Umbrella Insurance
a report that a taxpayer has to submit annually to the government and is used to determine a person‘s tax liability
Tax Return
things that help provide convenience, comfort, or enjoyment
Amenities
the measurement of gain or loss generated on an investment relative to the amount of money invested
Return on Investment (ROI)
the annual deadline for filing your income taxes is BLANK (Month & day)
April 15th
a health plan with a high minimum deductible for medical expenses
High Deductible Health Plan
the dollar amount people can subtract from their income before the tax is calculated
Standard Deduction
the increase in value of a home over time; the difference between the amount owed and what the home could be sold for
Equity
a qualified retirement savings plan offered by a company to its employees who contribute money from their gross pay
401(k)
BLANK tax is a tax on goods and services that goes to a state or local government
Sales Tax