Glossary of Terms

Glossary of Terms

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- A -

Accidental death and dismemberment (AD&D)
Adjusted Gross Income
Agency Issues
Aggressive Growth Fund
Alternative Minimum Tax (AMT)
American Depository Receipt (ADR)
Annual report
Annuity
Appreciation
Assessment
Asset
Asset allocation
Asset class
Assisted daily living facility
Attending physician statement (APS)

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- B -

Balanced Fund
Basis Point
Bear market
Benchmark
Beneficiary
Benefit period
Blue Chip Fund
Blue Chip Stock Fund
Blue Sky Laws
Bond
Bond rating
Broker/Dealer
Bull market

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- C -

Capital appreciation
Capital Gain
Cash accumulation value
Cash equivalents
Cash reserves
Cash surrender value
Cash Value
Claim
Closing price
Commercial paper
Common stock
Community based care setting
Compound interest
Consumer Price Index
Contrafund
Convertible
Corporate bonds
Cost Basis
Cost of insurance
Cost of living rider

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- D -

Death benefit
Deferred compensation plan
Depreciation
Disability income insurance coverage
Diversification
Dividends
Dollar-cost averaging
Dow Jones Industrial Average

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- E -

EAFE International
Earnings growth
Education IRA
Endorsement
Equity
ERISA
Estate Planning
Expenses

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- F -

Face amount
Family (mutual fund)
Federal Deposit Insurance Corporation (FDIC)
Flexible Premiums

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- G -

Growth Fund
Guaranteed minimum death benefit

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- H -

Hedging
High-risk investments

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- I -

In force
Inception
Income
Income yield
Index
Index fund
Individual Retirement Account or Arrangement (IRA)
Inflation
Interest
Intermediate care
International Fund
Investment Options
Investor services

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- L -

Lapse
Large-cap
Lien
Life expectancy
Life insurance
Limited partnership
Liquid asset
Liquidity
Load
Load fund
Loans
Low risk investments
Lump sum distribution

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- M -

M&E Charge
Manager
Market
Market Capitalization
Market risk
Market timing
Market Value
Market-valued account
Maturity
Mid-cap
Minimum investment
Money market investments
Mortgage-backed securities
Mutual company
Mutual Fund

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- N -

NASDAQ
NASDAQ Composite Index
Negotiable certificates of deposit
Net asset value (NAV)
Net assets
No minimum fund
No-lapse provision
No-load mutual fund

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- O -

Offering price
Open-end mutual fund
Own occupation

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- P -

Partial disability
Pension fund
Performance
Permanent life insurance
Policy
Policy Loan
Portfolio
Portfolio turnover
Pre tax
Preferred stock
Premium
Premium loads
Price appreciation
Price fluctuation
Price-to-book ratio
Price-to-earnings ratio
Price-to-sales ratio
Principal
Prospectus

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- R -

Rate of Return
Rebalancing
Risk
Risk tolerance
Roth IRA
Russell 2000 Index

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- S -

S&P 500 Index
SAI
Sector funds
Securities
Securities and Exchange Commission (SEC)
Shareholder
Short term
Small-cap
Stock company
Stock symbol
Stocks
Survivorship
Survivorship Variable Universal Life
Survivorship Whole Life

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- T -

Target Premiums
Tax deferred
Tax-deferred annuity
Taxable Income
Term life insurance
Ticker symbol
Total disability
Traditional IRA
Treasury Bill Index (90-day)
Treasury bills

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- U -

U.S. Treasury notes
UGMA
Unit value
Universal life insurance
UTMA

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- V -

Value Fund
Variable investment options
Variable universal life
Volatility
Volatility

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- W -

Waiver of premium
Weighted Average
Whole life insurance
Withdrawal
Workers' compensation

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- Y -

Yield