Term life insurance

Similar financial terms

Term to maturity
The term to maturity of a bond, commonly referred to as maturity or term, is the number of years over which the issuer has promised to meet the conditions of the obligation set out in the bond indenture. The maturity of a bond refers to the date that the debt will cease to exist, at which time the issuer will redeem the bond by paying the principal (or face value).

Short-term bonds
Bonds with a maturity of between one and five years.

Medium-term or intermediate-term bonds
Bonds with a maturity of between five and twelve years.

Long-term bonds
Bonds with a maturity of more than 12 years.

Short Term Gain
The profit realized from the sale of securities or other capital assets possessed for twelve months or less.

Volatility term structure
The volatility term structure is the variation of implied volatility with time to maturity.

Terminal value
The value at maturity.

Term structure of interest rates
The relationship between interest rates and their maturities.

Current portion of long-term dept
Those liabilities that are payable within the next 12 months, including accounts and taxes payable, and the current portion (12 months' payments) of notes payable and current liabilities.

Terms of trade
The weighted average of a nation's export prices relative to its import prices.

Terms of sale
Conditions on which a firm proposes to sell its goods services for cash or credit.

Term trust
A closed-end fund that has a fixed termination or maturity date.

Term premiums
Excess of the yields to maturity on long-term bonds over those of short-term bonds.

Term repo
A repurchase agreement with a term of more than one day.

Term insurance
Provides a death benefit only, no build-up of cash value.

Term loan
A bank loan, typically with a floating interest rate, for a specified amount that matures in between one and ten years and requires a specified repayment schedule.

Term bonds
Often referred to as bullet-maturity bonds or simply bullet bonds, bonds whose principal is payable at maturity.

Term Fed Funds
Federal funds sold for a period of time longer than overnight.

Short-term tax exempts
Short-term securities issued by states, municipalities, local housing agencies, and urban renewal agencies.

Short-term solvency ratios
Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (a) the current ratio, (b) the acid-test ratio, (c) the inventory turnover ratio, and (d) the accounts receivable turnover ratio.

Short-term investment services
Services that assist firms in making short-term investments.

Short-term financial plan
A financial plan that covers the coming fiscal year.

Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations not requiring interest payments that must be paid over a period of more than 1 year.

Medium-term note (MTN)
A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from the following maturity bands: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.

Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.

Long-term liabilities
Amount owed for leases, bond repayment and other items due after 1 year.

Long-term financial plan
Financial plan covering two or more years of future operations.

Long-term debt ratio
The ratio of long-term debt to total capitalization.

Long-term debt/capitalization
Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common stockholder equity.

Long-term debt
An obligation having a maturity of more than one year from the date it was issued. Also called funded debt.

Long-term assets
Value of property, equipment and other capital assets minus the depreciation. This is an entry in the bookkeeping records of a company, usually on a "cost" basis and thus does not necessarily reflect the market value of the assets.

Long-term
In accounting information, one year or greater.

Liquidity theory of the term structure
A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market's expectations of future interest rates because they embody a liquidity premium.

Terms Sheet
This is a document outlining the investment terms of a particular investment opportunity. It defines the terms and conditions of an investment, usually as dictated by an investor. It is the negotiating document that the parties must jointly agree to before a definitive investment agreement can be drafted.

Coefficient of determination
A measure of the goodness of fit of the relationship between the dependent and independent variables in a regression analysis; for instance, the percentage of variation in the return of an asset explained by the market portfolio return.

Financial intermediaries
Institutions which channel funds from people and institutions wishing to lend to those wishing to borrow.

Terminal Elevator
An elevator located at a point of greatest accumulation in the movement of agricultural products which stores the commodity or moves it to processors.

Terminal Market
Usually synonymous with commodity exchange or futures market, specifically in the United Kingdom.

Weighted average life
For amortizing securities, investors do not talk in terms of a bond’s maturity since its principal is made over time. This is because the stated maturity of such securities only identifies when the final principal payment will be made.

Half-life
The point in the life of a mortgage-backed security guaranteed or issued by the Government National Mortgage Association, the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, when half the principal has been repaid

Whole life insurance
A contract with both insurance and investment components: (a) It pays off a stated amount upon the death of the insured, and (b) it accumulates a cash value that the policyholder can redeem or borrow against.

Variable life insurance policy
A whole life insurance policy that provides a death benefit dependent on the insured's portfolio market value at the time of death. Typically the company invests premiums in common stocks, and hence variable life policies are referred to as equity-linked policies.

Universal life
A whole life insurance product whose investment component pays a competitive interest rate rather than the below-market crediting rate.

Portfolio insurance
A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy's goal is to ensure that the value of the portfolio does not fall below a certain level.

Keyman Insurance
Companies often take out insurance policies on essential (i.e. key) managers or employees to protect them against the loss (accidents, death) of such talent. This is referred to as keyman insurance.

Coinsurance effect
Refers to the fact that the merger of two firms decreases the probability of default on either firm's debt.

Coinsurance
An insurance policy under which the policyholder bears a percentage of the loss along with the insurance company.

Insurance
A contract that provides compensation for specific losses in exchange for a periodic payment. An individual contract is known as an insurance policy, and the periodic payment is known as an insurance premium. An insurance contract can be looked upon as an option.