Account Reconcilliation – The act of confirming that the balance in your checkbook matches the corresponding bank statement.
Adjusted Gross Income-AGI – All taxable income less IRS allowable adjustments to income.
Adjustable Rate Mortgage – Mortgage in which the rate of interest is adjusted based on a standard rate index. Most Adjustable Rate Mortgages have caps on how much the interest rate may increase.
Annual Fee – A yearly fee charged by credit providers for the use of a credit card.
Amortization Schedule – A timetable for the repayment of a mortgage loan. It shows the amount of each payment applied to interest and principal and the remaining balance.
Annual Percentage Rate-APR – The cost of credit as a yearly rate on credit cards and loans.
Annuity – A stream of equal payments to an individual, such as to a retiree, that occur at predetermined intervals (that is, monthly or annually). The payments may continue for a fixed period or for a contingent period, such as for the recipient’s lifetime. Although annuities are most often associated with insurance companies and retirement programs, the payment of interest to a bondholder is also an example of an annuity.
Appraisal – A written report by a qualified appraiser estimating the value of property.
Appreciation – An increase in the value of a property due to improvements made by the owner or to changes in the market.
Assessed Value – The value of a property as determined for taxation by a public tax assessor.
Asset – Any item of economic value owned by an individual, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, a house, a car, and other property.
Automatic Reinvestment Plan – A plan offered by a mutual fund in which the fund automatically reinvests all distributions to a shareholder account.
Bad Credit – A rating you receive when you default on loan obligations. A bad credit rating can affect your chances of being approved for future loans.
Balance Sheet – A financial statement providing an instant picture of your net worth. Total assets minus total liabilities equal net worth.
Balance Transfer – Moving a balance (debt) from one credit card to another. This is often offered as an option on some credit card applications. The usual reason is to shift an ongoing debt to an account with a lower interest rate.
Bankruptcy – Is a legal avenue debtors use to be legally released from their debts. When a person can no longer pay his obligations, he may opt to file for personal or business bankruptcy. There are several chapters of bankruptcy but the most commonly used Chapter 7 (total liquidation of assets), Chapter 11 (Business reorganization), Chapter 12 (Farm debt) and Chapter 13 (Repayment Plan).
Basis Points – A measure of changes in interest rates that is 1/100th of 1 percent. A chance of 50 basis points equals ½ of 1 percent.
Beneficiary or Beneficiaries – The recipient of funds, property, or other benefits, as from an insurance policy or will. The person or people who will receive the assets of the trust upon the trustor’s death.
Billing Cycle – The number of days between statement dates, generally about 25 days.
Billing Error – Any mistake in your monthly statement as defined by the Fair Credit Billing Act.
Budget – A systematic plan for the expenditure of a usually fixed resource, such as money or time, during a given period. An itemized forecast of an individual’s or company’s income and expenses expected for some period in the future.
Certificate of Deposit-CD – Short- or medium-term, interest-bearing, FDIC-insured debt instrument offered by banks and savings and loans. CDs offer higher rates of return than most comparable investments, in exchange for tying up invested money for the duration of the certificate’s maturity. Money removed before maturity is subject to a penalty. CDs are low risk, low return investments.
Certificate of Title – A written statement by an attorney or title company as to the status of a property title. Proof of property ownership.
Certified Financial Planner – A person who is certified to give financial advice. One must study and take extensive exams in the following areas to become certified: financial planning, taxes, insurance, estate planning and retirement. Continuing education credits are required each year to maintain the certification status.
Charge-off
A debt that has been written off as a loss or uncollectible. These types of debts usually end up at collection agencies shortly after being written off.
Checking Account
An account which allows the holder to write checks against deposited funds.
Closing The final step in the purchase of property, during which the buyer and seller sign the sale agreement. The buyer signs the loan agreement and pays the cost of closing. May include title search, points, transfer taxes and various other fees.
Closing Costs
Fees and expenses, over and above the price of the property, incurred by the buyer and/or the seller in the property ownership transfer. Examples are title searches, lawyer’s fees, survey charges, and deed filing fees. Also called settlement costs.
Collateral
Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default. Also called security. Security given in exchange for a loan.
Collection Account
When a person does not pay back his loan, it is considered a collection account. Once the debt is charged off, the account will be assigned to a collection agency who will also report the debt as a collection account. Many times a person’s credit report will show a charge-off and collection account for the same debt. Whenever a collection agency gets involved, the debt ultimately lands on the consumer’s credit report(s).
Collection Agency-CA
A third party used to collect on delinquent accounts. Any third party collectors including attorneys are mandated by the Federal Fair Debt Collection Practices Act. This act protects you against abusive collection procedures.
Compound Interest
Interest paid both on principal and on interest earned during previous compounding periods. Essentially, compounding involves adding interest to the sum of principal and any previous interest in order to calculate interest in the next period.
Consolidated Omnibus Budget Reconciliation Act of 1985-COBRA
If your company is covered by a COBRA plan and you leave your job for whatever reason and were an active participant in the company’s health plan prior to your departure date, you have the right, if you wish, to continue the health insurance coverage you and your family received, for at least 18 months. You will have to pay for this coverage out of your own pocket, but it cannot be more than 102 percent of the normal cost of coverage. COBRA is meant to protect you while you look for another policy.
Consolidation
To refinance more than one loan into a new single loan usually to reduce payment and interest being paid.
Co-signer
A person who guarantees a loan for another.
Consumer Credit Counseling Service
Non-profit agencies that offer consumers with credit problems debt negotiation services and advice on financial management.
Consumer Price Index
A monthly cost of living index prepared by the U.S. Government’s Bureau of Labor Statistics
Credit
An obligation, or promise to pay later for money borrowed or purchases made today.
Credit Card
A plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or services on credit. Also called charge card. A card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered.
Credit Bureau-CRA
An independent data storage company that maintains the history of your credit reports. The credit bureaus, also knows as Credit Reporting Agencies (CRA), are independent of each other. There are three major credit bureaus: Experian, Equifax and Trans Union.
Credit History/Credit Report
A record of how a person has borrowed and repaid debts.
Credit Limit
The maximum amount that can be charged to an account by a cardholder as determined by income and credit history.
Credit Line
The amount of credit extended to a consumer on a particular account.
Credit Management
A plan to control or improve one’s credit, often with the assistance of a professional service provider.
Credit Profile
A report that includes information from all three of the major CRAs (Credit Reporting Agencies).
Credit Rating
A published ranking, based on detailed financial analysis by a credit bureau, of one’s financial history, specifically as it relates to one’s ability to meet debt obligations. The highest rating is usually AAA, and the lowest is D. Lenders use this information to decide whether to approve a loan.
Credit Scoring
An algorithm used to calculate a person’s credit. This “Credit Score” claims to predict your ability to repay obligations and measures likeness of potential default.
Credit Union
A nonprofit cooperative financial institution that provides credit to its members. Credit unions often pay slightly higher rates of interest on passbook-type savings accounts and charge lower rates on consumer loans.
Credit – Open-end
A line of credit that may be used repeatedly up to a certain limit, also called a charge account or revolving line of credit.
Creditor
A lender or service provider to whom you owe money.
Creditworthiness
How likely you are to repay debts and obligations in a timely manner.
Currency
Any form of money accepted by a country and in actual use within that country as a medium of exchange.
Debit Card
A card which allows customers to access their funds immediately, electronically. Unlike a credit card, a debit card does not have any float.
Debt Consolidation Loan
The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. Also called consolidation loan.
Debt Consolidation Program
A program which is usually handled with you through a consumer credit counseling organization. They contact creditors on your behalf to lower your interest rates so your payments will be more manageable. You send them money weekly or biweekly and they pay your creditors for you. This program usually allows you to get out of debt within 3 to 7 years if you stick with it.
Debt Negotiation
The process of re-negotiating credit terms with lenders in order to lower payments or interest rates.
Debtor
Person owing a debt.
Debt Equity Ratio
The ratio of total debt to total equity. The amount still owed on your home in comparison with the fair market value of your home.
Debt-to-Income Ratio
The percentage of a person’s monthly earnings used to pay off debt. It is taken into account by lenders in extending credit.
Deduction
An amount that may be subtracted from adjusted gross income to determine taxable income.
Deed
The legal document that conveys ownership of a property.
Default
Failure to meet the terms of a credit agreement.
Depreciation
A deduction from the value of fixed assets over time. As in your new automobile starts to depreciate after you drive it from the showroom.
Dividends
Payments made by companies to their stockholders, usually paid from profits.
Dividend Reinvestment Plan
A company program that allows its dividends to be reinvested in additional shares. The shares may be sold at a discount from the current market price.
Dollar Cost Averaging
An investment plan requiring periodic, usually monthly, fixed dollar amount investments. This plan tends to average out the price of investments over time.
Down Payment
The amount a consumer pays in cash on a major purchase. It can be required by the lender as a condition of purchase.
Durable Power Of Attorney
A document that indicates that you have authorized someone to make legal and financial decisions on your behalf and stays in effect even when you are incapacitated.
Durable Power Of Attorney For Health Care
A document, created while you are still capable of expressing your desires regarding medical treatment and life supports that give someone you designate the authority to make medical decisions for you if you are rendered incapable of making them yourself.
Employee Retirement Income Security Act-ERISA
The federal law that protects workers pension funds.
Employee Stock Option Plan-ESOP
A program in which a company contributes newly issued company stock worth up to 15% of employee payrolls into a tax sheltered profit sharing plan.
Encumbrance
Alien, charge, or liability against a property which may affect the transfer of that property.
Equal Credit Opportunity Act
A federal law that prohibits discrimination by lending institutions when extending credit.
Equity
The difference between the fair market value of a home or other asset and the unpaid balance of the loan, including outstanding liens.
Escrow Account
An account designed to hold a sum of money for a specific purpose. In real estate it is usually set up to pay the real estate taxes. In debt negotiation or settlement it is set up to pay off your debt in full once the amount is negotiated.
Estate
A person’s total worth. All interests in property, investments and other assets minus all liabilities. All assets owned by an individual at death, to be distributed according to the individual’s will (or a court ruling if there is no will).
Estate Tax
Tax imposed on the transfer of property from a deceased to his/her heirs, legatees or devisees.
Executor
An individual or institution nominated in a will and appointed by a court to settle the estate of a deceased.
Exemption
A direct reduction taken from taxable income for a specific reason, as allowed by the IRS.
Fair Credit Reporting Act
A public law enacted to protect consumers from abusive credit practices. This law makes creditors and credit bureaus apply standard yet important procedures for accurate credit reporting.
Fair Market Value
A fair price for a home or vehicle that is based on recent sales and similarly valued properties.
Fannie Mae-Federal National Mortgage Association
The nation’s largest source of home financing. It is a government charted organization that ensures financing is equally available in all areas of the country.
Federal Deposit Insurance Corporation-FDIC
The federal agency that insures deposits at commercial banks up to $100,000.
Federal Reserve System
The government agency that sets monetary policy through its control over banking system reserves. It raises and lowers interest rates in order to keep inflation in check.
Federal Reserve Board of Governors
The governing body of the Federal Reserve System. The seven member panel is appointed by the President.
Federal Trade Commission
A government agency that overseas credit practices and protects consumers.
Fixed-Rate Mortgage
A mortgage in which the interest rate does not change during the term of the loan.
Foreclosure
A procedure to repossess a person’s home if payment is not made. The property is sold to satisfy the debt.
401K
A voluntary retirement plan offered to employees of a company that allows up to a certain percentage of their pretax pay to be set aside and invested within the retirement plan. The percentage varies from company to company and can increase each year. The employer can also contribute to the employees’ plan if they wish. The funds and the growth are not taxed until the funds are withdrawn. There are restrictions as to when and how you can withdraw these funds without penalties.
Freddie Mac-Federal Home Loan Mortgage Corporation
A security that is issued by this corporation and is secured by pools of conventional home mortgages. Holders of Freddie Macs receive a share of the interest and principal payments made by the homeowners.
Frivolous Dispute
A procedure credit bureaus can apply if the agency feels your disputes are unsubstantiated, or if they believe you are attempting credit repair.
Garnishment
A court ordered seizure of a debtor’s assets to satisfy a creditor, often by attachment of wages.
Gift Tax
A graduated tax assessed against a person who gives money or an asset to another person without receiving fair compensation. A significant amount of each gift is tax-free.
Ginnie Mae-Government National Mortgage Association
A government-owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities.
Grace Period
The period, usually 20 to 25 days, during which finance charges can be avoided if a balance is paid in full.
Gross Domestic Product-GDP
The total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
Gross Income
Total income before taxes or deductions.
Home Equity Loan
A loan based on the difference between the current market value of a home and the amount of equity paid on a home, often referred to as a second mortgage.
Home Equity Line of Credit-HELOC
An agreement from a lender to supply up to some maximum amount based on the difference between the current market value of a home and the amount of equity paid on a home.
Income Statement
An accounting of earnings, shows how revenues were spent and how much remains as net income for a given period of time.
Individual Retirement Account-IRA
A tax-deferred retirement plan that permits individuals to set aside up to $2,000 per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). IRAs can be established at a bank, mutual fund, or brokerage.
IRA Rollover
An account used to transfer retirement funds currently being held in a company retirement plan where taxes continue to be deferred. Simply stated, the funds are “rolled” from their current plan into an IRA rollover account. There are restrictions as to when and how you can withdraw or transfer these funds without penalties or taxes.
Inflation
The rate of rise in the price level of goods and services. For example, if $1.10 will buy you what $1.00 did a year earlier, inflation has equaled 10%.
Inquiries
Each credit application results in a notation on an individual’s credit report. Frequent inquiries can have a negative impact on a credit report.
Insolvency
Insufficient liquid assets to meet currently due obligations.
Installment Loan
A credit account in which the amount of the payment and the number of payments are fixed, as in a car loan.
Interest
The amount a borrower pays for the use of a lenders funds, generally a percentage of the amount borrowed. It is usually expressed as an annual percentage rate (APR).
Introductory Rate
A temporary, lower APR (Annual Percentage Rate) on credit that usually lasts for a few months before converting to the normal fixed or variable rate.
Investment
Any asset expected to yield deferred benefits or dividends. An item of value purchased for income.
Judgment
An official order by a court determining a debtor’s legal responsibility, and failure to satisfy, a debt. It is a public record that can be listed on a credit report.
Keogh
A retirement plan set up by self-employed individuals who are not incorporated. The self-employed individual is allowed to make a tax-deductible contribution up to a certain percentage of his or her income. The funds grow without taxation until they are withdrawn. There are restrictions as to when and how you can withdraw these funds without penalties.
Liabilities
Financial obligations or debt, claims or potential loss.
Lien
A legal hold or claim of one person on the property of another.
Line of Credit
An agreement from a lender to supply up to some maximum amount at prespecified terms.
Liquidation
The selling off of assets in order to satisfy creditors.
Loan-To-Value Ratio-LTV
The ratio of the fair market value of an asset to the value of the loan that will finance the purchase. Loan-to-value tells the lender if potential losses due to nonpayment may be recouped by selling the asset.
Long-Term Care
Any type of health or medical support or care needed over an extended period. Long-term-care Insurance
Insurance written to cover the costs of long-term-care services within a skilled nursing facility and a variety of home health-care situations. The purpose of purchasing long-term-care insurance is to protect your assets.
Maturity
The date on which the principal balance of a loan comes due.
Medicaid
A federal- and state-government-funded program that pays for long-term care, medical bills, and some health-care services for extremely low-income individuals. Considered a form of welfare.
MediCal
The name for Medicaid in the state of California.
Medicare
A federally instituted medical care program that provides medical and hospital insurance for those who are 65 or older or for those who are disabled.
Medigap Insurance
An insurance policy individually purchased to cover gaps in Medicare, such as co-payments and deductibles.
Money Management
The process of managing money, including investments, budgeting, banking, and taxes. Also called investment management.
Money Market Account
A savings account which shares some of the characteristics of a money market fund. Like other savings accounts, money market accounts are insured by the Federal government. Money market accounts offer many of the same services as checking accounts although transactions may be somewhat more limited. They are very safe and highly liquid investments, but offer a lower interest rate than most other investments.
Money Market Mutual Fund
An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. The main goal is the preservation of principal, accompanied by modest dividends. The fund’s net asset value remains a constant $1 per share to simplify accounting, but the interest rate does fluctuate. Money market funds are very liquid investments, and therefore are often used by financial institutions to store money that is not currently invested.
Money Order
Financial instrument, issued by a bank or other institution, allowing the individual named on the order to receive a specified amount of cash on demand. Often used by people who do not have checking accounts.
Mortgage
A loan to finance the purchase of real estate, usually with specified payment periods and interest rates. The borrower (mortgagor) gives the lender (mortgagee) a lien on the property as collateral for the loan.
Mortgagee
The lender under the mortgage loan.
Mortgagor
The borrower under a mortgage loan.
Mutual Fund
A regulated investment company with a pool of assets that regularly sells and redeems its shares. Managers buy and sell assets with the income, gains and losses accruing to the owners. The fund stands ready to buy back it’s shares at their net asset value. The funds may be either load (fees to administer the fund) or no load (no fees).
Net Worth
Assets minus liabilities equal net worth. You use a balance sheet to figure out your net worth.
Note
A legal document that gives evidence of mortgage or other indebtedness, including the amount and terms of repayment.
Original Creditor
What you call the institution who owned the debt prior to collection agency assignment.
Origination Fee
A fee charged by a lender for processing a loan application.
Overdraft Protection
A checking account feature in which a person has a line of credit to write checks for more than the actual account balance. Instead of getting charged about $25 for bouncing a check, overdraft protection will in effect provide the account holder with an instant loan. The interest rate will be extremely high, but if it is paid off quickly it is usually much less expensive than the bounced check fee. Some banks do charge a fee when an account balance falls below zero even if the account holder has overdraft protection, but it’s still significantly less than the bounced check fee.
Pension
A periodic or lump sum payment to a person following retirement from employment or to serving dependants of a deceased former employee.
Power of Attorney
A legal document that authorizes an individual or organization to act on your behalf in certain matters.
Pre-Approved
A lender extends an offer based on information from credit bureaus or other lenders that indicates a potential borrower meets their lending criteria such as annual income, etc.
Prepayment Penalty
The fee assessed for early pay off of a debt.
Pre-qualified
A lender extends a qualified offer of credit, based on general information about creditworthiness obtained from lenders.
Prime Rate
A short-term interest rate quoted by a commercial bank as an indication of the rate being charged on loans to its best commercial customers. Even though banks frequently charge more and sometimes less than the quoted prime rate, it is a benchmark against which other rates are measured.
Principal
The outstanding balance owed on a debt, excluding interest.
Private Mortgage Insurance-PMI
Insurance that protects a lender against loss during the period when there is no equity in a home and the down payment is less than 20 percent of the purchase price. It is paid for by the home buyer.
Probate
A legal court proceeding that legally transfers property from the name of the owner upon his or her death to the designated beneficiaries within that person’s will.
Profit
Net income minus expenses. An accounting of income and expenses for a specified period. Also called an income statement.
Proprietorship
The ownership of a business entity. Usually refers to sole proprietorship.
Public Record
A record filed with the courts such as judgments or child support. Unpaid tax liens are also public records. All report to your credit reports for a minimum of 7 years.
Refinancing
Securing a new loan to pay off an existing one, or to gain access to the existing equity in a home.
Repossession
A collection procedure to take back security such as a car or equipment to satisfy a defaulted loan.
Revocable Living Trust
A device that allows you to transfer legal title of your property to another person (or to yourself as trustee) to hold for the benefit of yet another person (beneficiary) in the cheapest and most effective way.
Revolving Account
An account requiring a minimum monthly payment plus a service charge on the balance. Interest charged declines as the balance is reduced.
Roth IRA
An individual retirement account that allows you to put up to $2,000 (within certain income limitations) a year away non-tax deductible with the benefits of being able to withdraw the earnings tax free in the future.
Savings Bond
A non-marketable security issued by the U.S. Treasury in relatively small denominations for individual investors. Three categories of bonds are available. Interest on these bonds is exempt from state and local, but not federal, taxation.
Second Mortgage
A real estate mortgage with a subordinate claim to another mortgage on the same property. The second mortgage is more risky to the lender than the first mortgage; thus, it carries a higher rate of interest.
Secured Credit Card
A credit card secured by a savings account. The amount of credit extended is equal to the amount of savings.
Seller Financing
A real estate deal which uses the seller to finance part of the purchase price instead of a bank.
Simple Interest
Interest paid and computed only on the principle.
Simplified Employee Pension Plan-SEP
Pension plan in which both the employer and the employee contribute to an individual retirement account (IRA).
Severance
When a company lets an employee go, it may offer compensation for being severed. Severance usually is handled as a normal paycheck with all the standard taxes withheld.
Statement
The monthly bill from a credit card issuer that describes and summarizes the activity on an account. It includes the outstanding balance, purchases, payments, credits, finance charges and other transactions for the month.
Student Loans
Student loans are usually federally funded. A student loan allows a person to finance their education and defer payments until after graduation. Student loans cannot be included in a bankruptcy and have no statute of limitations.
Statute of Limitations
A federal law that determines the time frame that a debt is collectable. Once a statute expires, the debt is legally unenforceable. However, it can still remain on your credit reports until the governing period of time, usually 7 years. Most statute of limitations to collect a debt is between 4-7 years.
Sub-prime
Borrowers who have a history default of late or missed payments. They are considered to carry more risk for lenders and are usually charged higher interest rates.
Successor Trustee
The person, or people, you designate to manage your trust if something happens to you.
Tax Credit
The direct dollar-for-dollar reduction of an individual’s tax liability; compare with tax deduction, which reduces an individual’s tax liability only in proportion to his/her tax bracket.
Tax Sheltered Annuity-TSA
A retirement account for certain workers such as teachers and hospital employees. A voluntary percentage, up to a maximum amount, is taken from pretax dollars and set aside for the employee. TSAs usually are held with insurance companies, where the money is placed in fixed accounts to earn interest. There are restrictions as to when and how you can withdraw these funds without penalties.
Term Insurance
A type of life insurance in which the insurance company pays a specified sum if the insured dies during the coverage period. Term insurance includes no savings, cash values, borrowing power, or benefits at retirement. On the basis of cost, it is the very least expensive insurance available, although policy prices can vary significantly among firms.
Title
A legal document that provides a history of ownership and entitlement by the current owner.
Title Search
The process of examining all relevant records to confirm that the seller is the legal owner of a property and that there are no liens or other claims outstanding.
Traveler’s Check
Check issued by a financial institution which functions as cash but is protected against loss or theft. Traveler’s checks are useful when traveling, especially in case of overseas travel when not all credit and debit cards carried by a person will be accepted. A charge or commission is usually incurred when a person exchanges cash for traveler’s checks, though some issuers provide them free of charge.
Trust
A legal arrangement whereby control over property is transferred to a person or organization (the trustee) for the benefit of someone else (the beneficiary). Trusts are created for a variety of reasons, including tax savings and improved asset management.
Trustee
The person designated to make all the decisions about the money and property in the trust.
Trustor
The person who creates the trust, who owns the property that will be put in the trust.
Truth-in-lending
A federal law that requires the disclosure, in writing, of the terms and conditions of a loan, including the annual percentage rate and other charges.
Underwriter
A company or person analyzing a person’s creditworthiness and undertaking the responsibility for issuing credit.
Universal Life
A type of life insurance in which the cash value varies with the policyholder’s payments and the company’s investment returns.
Veterans Administration-VA
A government agency that guarantees mortgage loans of veterans.
Variable Interest Rate
Variable interest rates change over time. They are calculated by taking the published prime rate (which varies) and adding a fixed percentage or margin on top. For example, a variable rate may be the prime rate plus 3.9 percent.
Variable Life
A type of insurance in which the cash value varies with the return of the policy holder’s portfolio.
Variable Rate Mortgage
A mortgage in which the interest rate of the loan is allowed to vary with market rates.
Whole Life Insurance
An insurance policy that will cover you for your whole life, no matter how long that happens to be. Because this is maximum coverage, it is also more expensive than term life insurance.
Will
A legal statement of a person’s wishes with regard to the disposition of his or her property or estate at the time of death.
Withholding Tax
A portion of an employee’s income withheld by the employer as partial payment of income tax.