A rider added to a life insurance policy to protect the insured against financial loss in the event of a terminal illness. An ADB makes living benefits payable to the insured for medical expenses prior to death. Accelerated (or living) … Continued
Insurance that provides coverage in the event of death due to accidental injuries, but not illness. In the event of death, payment is made to the insured’s beneficiary. If bodily injury occurs (e.g., the loss of a limb), the insured … Continued
Pension benefits earned (vested) based on years of service at a company and credited to the employee using an actuarial method.
A common clause in property insurance contracts that determines the coverage amount based on the fair market value of an item at the time it was damaged, stolen, or destroyed.
A specialist in the mathematics of risk, especially as it relates to insurance calculations such as expectancy, premiums, dividends, and annuity rates.
Individual employed by a property/casualty insurance company to settle claims brought by insureds. The adjuster evaluates each claim and then makes recommendations to the insurance company.
The original price of an asset, plus any additions and reinvested earnings, that is used to determine capital gains or losses at the time of sale of the asset. In the case of an inheritance, the cost basis is the … Continued
An individual or professional organization, such as a bank’s trust department, appointed by the probate court to administer an estate when the owner dies without having made a will or without nominating an executor. An executor may also be appointed … Continued
According to the terms of a qualified domestic relations order (QDRO), an individual who has been granted the right to receive all or part of a participant’s benefits under a qualified retirement plan. The alternate payee is generally a spouse, … Continued
A federal tax aimed at guaranteeing that individuals, trusts, estates, and corporations pay a minimum amount of income tax, preventing them from taking full advantage of exemptions and other tax benefits that would otherwise allow them to pay little or … Continued