Glossary- Life Insurance, Health Insurance, Retirement

Capital Gains Taxes

Taxes that are imposed at the redemption of all capital gains.

Capitalization

The value of a fund derived by the multiplication of the fund's share price by the number of outstanding shares. Most often, this is applied in order to determine the value of the specific companies.

Cash Surrender Value

The amount that is available to the owner if a life insurance policy is surrendered any time before the maturity date. The amount represents the cash value minus surrender charges and any outstanding loans due upon cancellation of the policy.

Claim

Written request by an insured for the insurance company to cover an incurred loss, usually submitted on the company's standard form.

Claimant

Person who has as interest in the policy and making a claim on the policy.

Closed end fund

A type of fund that offers only a fixed amount of shares, usually sold through a brokerage firm by a broker. Most funds are not closed - end funds; they offer unlimited shares and may be purchased and redeemed directly by the individual through the mail by check.

Closing price

The price of stock or other security at the end of the day, after the final trade.

Collateral

A temporary assignment of the monetary value of a life insurance policy as security for a loan. In the event of default, the creditor would receive proceeds or values only to the extent of his interest.

Commisson

A fee paid by the investor to a broker or other sales agent for investment advice and assistance.

Compounding

Earnings on an investment's earnings. Over time, compounding can produce significant growth in value of an investment.

Contractual obligation

When parties effect a contract, there are obligation that the parties assume and are legally bound to fulfill these obligations. If there are not fulfilled, the other part can resort to legal means to seek redress.

Coroner

The coroner is the person who is legally authorized by the government to determine the cause of death, when this is in doubt, or if there has been death which is not deemed to be due from normal illnesses. He or she does it by examining the evidence submitted including autopsy or post mortem reports, medical reports and statements from witnesses. The coroner is usually a magistrate or someone who possess legal qualification.

Cover Continuance Option (CCO)

An option available on specified unit linked polices, where the policy holder can choose to discontinue his premium payments after having made premium payments regularly for at least three years. In such cases, the life cover of the policy remains as is, in spite of the premium payments being discontinued. The life cover will continue till the value of the policy funds becomes 110% of the annual premium.