Page 115 - The Informed Fed--Hearn Wealth Management

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

Account balance: Account balance, also called your accrued benefit, is
For

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.
ve a

.

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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