Terms with Category Estate Management
- Single-Premium Life Insurance — Definition,
- Life insurance where all premiums are paid up front in a single lump sum payment.
- Spin-Life — Definition,
- A financial industry that specializes in buying life insurance policies from individuals or convincing individuals to take out new life insurance policies with an investor as a beneficiary.
- Split-Funded Annuity — Definition,
- Two annuities purchased together, one with a deferred payout and the other with an immediate payout.
- Sprinkling Provision — Definition,
- A provision that gives a trustee the authority to distribute life insurance death benefits as he or she sees fit, and to those who need the money the most.
- Straight Life Annuity — Definition,
- An annuity that stops all payments upon the annuitant's death.
- Stranger Originated Life Insurance (STOLI) — Acronym,
- A life insurance policy purchased by someone without any insurable interests with the insured person.
➥ Illegal in many Canadian provinces. - Substandard Health Annuity — Definition,
- An annuity with increased income payments for people with shorter life expectancies due to medical conditions.
- Surrender Charge — Definition,
- A charge levied when a life insurance policyholder cancels his or her policy.
- Surrender Rights — Definition,
- The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
- Survival Analysis — Definition,
- A statistical analysis of how likely someone or something will survive to a set date.
- Survivorship — Definition,
- The right of a person to secure ownership by reason of his/her outliving someone with whom s/he shared undivided interest in the land.
- Tax Deferred Annuity (TDA) — Acronym, Important,
- A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
➥ More commonly known as a Tax Sheltered Annuity (TSA). - Tax Sheltered Annuity (TSA) — Acronym, Important,
- An arrangement where employees are given the option to make tax-deferred contributions to an annuity set up by their employer.
➥ See also Tax Deferred Annuity (TDA). - Tax-sheltered — Definition,
- A savings or investment plan that offers significant tax savings.
- Tenancy by the Entirety (TBE) — Acronym,
- An arrangement where spouses have an undivided interest in a property. If a spouse dies, the other retains ownership.
- Tenancy in Common — Definition,
- Ownership by two or more people in which each person owns an undivided interest in the entire property and all have equal rights to use the property. When one tenant in common dies, that person's interest may be sold, mortgaged or transferred to another in a will.
- Term Life Insurance — Definition,
- Life insurance that provides coverage for a set period of time, often from five to forty years.
- Transferable Insurance Policy — Definition,
- A life insurance policy that can be sold to another party through a viatical settlement.
- Trust — Definition,
- A fund established like a will, specifying how money or property will be disbursed, lists the recipients or beneficiaries and names one or more trustees to manage the assets. An irrevocable trust can't be changed after the terms are finalized; a revocable trust has more legroom in how much can be transferred, but is usually costlier to maintain.
- Trust Account — Definition,
- An account used by a law firm or real estate agent to handle earnest money, funds set aside for repairs and other money that the buyer and seller put up before closing.
- Trust Company — Definition,
- A company that acts as a trustee (an entity that controls financial assets on the behalf of another).
- Trustee — Definition,
- A person who holds and manages assets for the benefit of beneficiaries.
- Universal Life Insurance — Definition,
- A form of life insurance that offers flexible investment options and tax efficiency for estate management.
- Vanishing Premium Policy — Definition,
- A life insurance policy where policy dividends are used to pay the policy's premiums.
- Variable Annuity (VA) — Acronym,
- An annuity where the payments received by the annuitant in the income phase of the annuity vary depending on how well the insurer's investment portfolio has performed.
- Variable Death Benefit — Definition,
- A life insurance death benefit that differs depending on how well the insurance company's investment portfolio fares.
- Variable Life Insurance (VLI) — Acronym,
- Life insurance that provides the policyholder the option to place some of his or her premiums into the insurer's investment portfolio, providing beneficiaries with a variable death benefit.
- Variable Universal Life Insurance (VULI) — Acronym, Important,
- A form of life insurance with adjustable premiums, flexible investment options, and tax efficiency.
- Viatical Settlement — Definition,
- A contract where an individual agrees to sell his or her life insurance policy to a third party before their death.
- Viator — Definition,
- A person who agrees to sell his or her life insurance policy to a third party.
3.
Single-Premium Life Insurance -
Sprinkling Provision
Sprinkling Provision
