Glossary- Life Insurance, Health Insurance, Retirement

M & A

Mergers and acquisitions

Management Fee

Fee levied for management of the fund and / or shareholder administrative services. Usually a fixed percentage of the total value of your fund that is assessed once in a year.

Market Risk

Refers to the potential of loss that is possible, as a result of the short-term validity of the stock market. Owning funds, due to their diversification, shield an investor to some market risk that a stockholder may be vulnerable to.

Market timing

A method of investing in which an investor may try to predict good or bad markets for the purposes of determining when to buy and sell a specific security or fund.

Maturity date

The date on which an endowment insurance policy's face amount will be paid to the policy-owner if the life insured is still living.

MF

Mutual Fund

Misrepresentation of material facts

Providing the wrong facts or not giving the entire truth of a matter. This is more serious that non-disclosure. It refers to the applicant stating wrong facts or giving half-truths. They are material because if the underwriter knew of it this information, the decision might be different.

Money Market Instrument

Include short term - investments such as CD's. T-Bills, and short-term commercial bonds. Money market mutual funds invest in these types of short-term investments; as a result, there is little to no risk of losing any portion of the principle investment.

Moral hazard

Underwriting the risk affecting an application based on factors such as the personal reputation and character of the applicant, business ethics or the existence of a criminal record. It concerns the intention or motivation behind the buying of a life insurance policy.

Morbidity

The probability of disability of a life or group of lives.

Mortality

The probability of death of a life or group of lives.

Mortgage

This is a form of assignment used in connection with a loan. The policy is mortgaged by the mortgager to the mortgaged who will hold it as a security for the duration of the loan until the loan and the interest is paid. In the event, the policy must be reassigned to the mortgagor if the amount is not paid by the required date, the mortgagee has the right to liquidate the policy and recover the amount and return the balance amount to the mortgagor.