Financial Vocabulary
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Accidental death benefit
The benefit payable to the beneficiary named by the policyholder after the accidental death of the insured.
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Accumulation plan
Plan to allow an investor to buy, on a regular basis, shares of a mutual fund. The amount invested can vary from one time to another.
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Action Fund
A mutual fund with a portfolio that consists primarily of common shares.
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Additional insured
A person who is insured under a policy in addition to the named insured.
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Agent
Person authorized to represent either the insured or the insurer to deal with insurance issues.
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Amortization
Allocation of benefits for reducing the cost of the intended use. Depreciation is not a disbursement; it is an accounting recognition of a diminution of potential service of tangible property resulting from wear and tear, obsolescence or any other cause.
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Annual information form
Background information used to inform investors about the company regarding information not contained in the prospectus or financial statements.
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Annual report
Official report sent by any public company to its shareholders advising them of the financial situation of the company. Independent accountants must audit this report.
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Annuitant
Person who receives a pension.
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Annuity
Amount paid at regular intervals under a contract for a period of time or until the death of the annuitant.
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Annuity certain guaranteed up to 90 years
Pension giving a fixed annual sum up until the depletion of capital in the year the annuitant turns 90 years old.
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Asset
Item on balance sheet of a company or a person representing all of its assets, including what is owed.
