Page 115 - The Informed Fed--Hearn (edited 10.29.20)

Accelerated Death Benefits: (ADBs): Some life insurance policies
make a portion of the death benefit available prior to the death of the
insured. Such benefits are usually available only due to terminal ill-ness
or for long-term care situations.

Accidental Death Benefit: An accidental death benefit is a rider added
to an insurance policy which provides that an additional death benefit
will be paid in the event death is caused by an accident. This rider is often
called “double indemnity”.

Account balance: Account balance, also called your accrued benefit, is
the amount your 401(k) account is worth on a date that it’s valued. For
example, if the value of your account on December 31 is $250,000, that’s
your account balance. Each time your account is valued, it is likely to
have a new balance.

Adjustable Rate Mortgage (ARM): An adjustable rate mortgage offers
an initial interest rate that is usually lower than a fixed rate, but that
adjusts periodically according to market conditions and financial indices.
The rate may go up and/or down, depending on economic conditions.
To limit the borrower’s risk, the ARM will almost always have a
maximum interest rate allowed, called a “rate cap”.

After-tax investments: After-tax investments you make with income
on which you have already paid income tax.

Amortization: The amortization of a debt is its systematic repayment
through installments of principal and interest. An amortization schedule
is a periodic table illustrating payments, principal, interest, and
outstanding balance.

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