A
An asset or item that is purchased with the hope that it will generate income or appreciate in value at some point in the future.
Investment
A set amount you may be required to pay out of pocket before your insurance plan begins to pay for covered costs.
Deductible
The world's largest stock exchange.
New York Stock Exchange
The person or entity you name in a life insurance policy to receive the death benefit.
Beneficiary
An individual that relies on another person for support, most often financial support.
Dependent
Formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event.
Claim
The money that gets paid to your beneficiaries if you die while your life insurance policy is in effect.
Death Benefit or Face Value
How easy it is to turn an asset into cash.
Liquidity
The amount you pay for your health insurance every month.
Premium
A fixed amount ($20, for example) you pay for a covered health care service after you've paid your deductible.
Co-Pay
The distribution of corporate profits to eligible shareholders.
Dividend
Issued by governments and corporations when they want to raise money. By buying one, you're giving the issuer a loan.
Refers to a savings component of permanent life insurance, such as universal life and whole life insurance.
Cash Value
An investment that pools money from investors to purchase stocks, bonds and other assets.
Mutual Fund
A security that represents ownership in a corporation
Common Stock
Permanent cash value life insurance that offers a death benefit and a cash value component.
Whole Life Insurance
When a market experiences prolonged price declines.
Bear Market
A period of time in financial markets when the price of an asset or security rises continuously.
Bull Market
A company that typically has a large market cap, a strong reputation and many years of success in the business world.
Blue Chip
A type of life insurance policy that has a specified end date, like 20 years from the start date.
Term Life Insurance
A U.S. government oversight agency responsible for regulating the securities markets and protecting investors.
Securities and Exchange Commission (SEC)
Profits made from the sale an investment.
Capital Gain
An investment strategy based on the premise that a portfolio with different asset types will perform better than one with few.
Diversification
The measure of how risky a particular investment is.
The loss incurred when a capital asset that has decreased in value is sold for a lower price than the original purchase price.
Capital Loss