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Definition of Irrevocable Beneficiary
Legal designation that cannot be contested. (See beneficiary)
This is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "Creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. Probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario.
Used in older contracts to confer the same rights as an irrevocable beneficiary. Applied to family members.
The person designated to receive proceeds entitled by a benefit. Payment of a benefit is triggered by an event.
The person or party designated to receive proceeds entitled by a benefit. Payment of a benefit is triggered by an event. In the case of credit insurance, the beneficiary will always be the creditor.
This is the person designated to receive the death benefit of a life insurance policy if the primary beneficiary dies before the life insured. This is a consideration when husband and wife make each other the beneficiary of their coverage. Should they both die in the same car accident or plane crash, the death benefits would go to each others estate and creditor claims could be made against them. Particularly if minor children could be survivors, then a trustee contingent beneficiary should be named.
One who receives income from a trust.
Publicly traded issues that may be collateralized by mortgages and MBSs.
Floating rate preferred stock, the dividend on which is adjusted every
Convertible preferred stock that may be exchanged, at the
preferred stock that can be converted into common stock at the option of the holder.
The rate of return required by the investors in the preferred stock of
preferred stock whose dividends accrue, should the issuer not make timely
preferred stock paying dividends that vary with short-term interest rates.
A biased expectations theory that asserts that the
preferred stock issued by a subsidiary located in a tax haven.
Non-cumulative preferred stock
preferred stock whose holders must forgo dividend payments when the
Preferred equity redemption stock (PERC)
preferred stock that converts automatically into equity at a
Preferred habitat theory
A biased expectations theory that believes the term structure reflects the
As non-smoking rates caused a major reduction in the cost of life insurance in the early 1980's, the emergence of preferred non-smoker rates in 1998 has caused another noteworthy reduction in rates. A growing number of insurance companies are offering better rates which go beyond simply looking at gender or smoking habits. Other health related factors such as physical build, lifestyle, avocation and personal and family health history indicating longer life expectancy can add up to significant cost savings to new life insurance applicants. Make certain to ask about these new preferred rates.
preferred shares give investors a fixed dividend from the company's earnings. And more
Are equity instruments that take no security against assets, have flexible terms of repayment and pay fixed or floating dividends.
A security that shows ownership in a corporation and gives the holder a claim, prior to the
A type of equity security where holders have a claim on the assets
A type of stock that usually pays a fixed dividend prior to any distributions
Stock that takes priority over common stock in regard to dividends.
Preferred stock agreement
A contract for preferred stock.
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. preferred stock typically does not carry the right to vote.
Redeemable Preferred Stock
A preferred stock issue that must be redeemed by the issuing enterprise or is redeemable at the option of the investor. Considered a debt security for accountingpurposes.
Extent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position.
The tendency of stocks preferred by the dividend discount model to share certain equity
Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a
A nickname for the New York Stock Exchange. Also known as The Exchange. More than 2,000
An option contract that gives its holder the right (but not the obligation) to purchase a specified
Ownership shares issued by a business corporation. A business
The combination of debt, preferred stock, and common stock used
capital structure, or capitalization
Terms that refer to the combination of
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash flow per common share
Cash flow from operations minus preferred stock dividends, divided by the
A financial security that represents an ownership claim on the
Common stock market
The market for trading equities, not including preferred stock.
Are debt instruments that are convertible into common or preferred shares, take secondary or no security against assets, have flexible terms of repayment and charge fixed or floating interest rates.
A security that can be converted into common stock at the option of the security holder,
Securities (generally bonds or preferred shares) that are exchangeable at the option of the holder for common shares of the issuing firm.
Provisions in a bond indenture or preferred stock agreement that require the bond or preferred
Cumulative dividend feature
A requirement that any missed preferred or preference stock dividends be paid
diluted earnings per share (EPS)
This measure of earnings per share
A dividend is a portion of a company's profit paid to common and preferred shareholders. A stock
The fixed or floating rate paid on preferred stock based on par value.
An arrangement whereby the interest rate on a floating rate note or preferred stock becomes fixed
The net worth of a business, consisting of capital stock, capital (or paid-in) surplus (or retained earnings), and, occasionally, certain net worth reserves. Common equity is that part of the total net worth belonging to the common shareholders. Total equity includes preferred shareholders. The terms common stock, net worth, and common equity are frequently used interchangeably.
The net worth of a company. This represents the ownership interest of the shareholders (common and preferred) of a company. For this reason, shares or stocks are often known as equities.
An ownership interest in an enterprise, including preferred and common stock.
An offer by the firm to give one security, such as a bond or preferred stock, in exchange for
Expectations hypothesis theories
Theories of the term structure of interest rates which include the pure
Assets that pay a fixed-dollar amount, such as bonds and preferred stock.
The market for trading bonds and preferred stock.
Mutual funds that seek regular income. This type of fund invests primarily in government, corporate and other types of bonds, debt securities, and other income producing securities and in certain circumstances can also hold common and preferred shares.
Involuntary liquidation preference
A premium that must be paid to preferred or preference stockholders if
Indicator of financial leverage. Shows long-term debt as a proportion of the
Book value of common stockholders’ equity plus preferred stock.
The difference between the total assets and total liabilities of a company. Note: The value of the preferred shares is deducted from the net worth because the preferred's are usually redeemed before any value is paid to the common shareholders.
New York Stock Exchange (NYSE)
Also known as the Big Board or The Exhange. More than 2,00 common
An efficient portfolio most preferred by an investor because its risk/reward characteristics
Pecking-order view (of capital structure)
The argument that external financing transaction costs, especially
A security that ranks junior to preferred stock but senior to common stock in the right to
A group of insureds who present similar risk to the insurance company. Risk classes include - standard, preferred, nonsmoker, substandard, uninsurable.
Sometimes called seg funds, segregated funds are the life insurance industry equivalent to a mutual fund with some differences.The term "Mutual Fund" is often used generically, to cover a wide variety of funds where the investment capital from a large number of investors is "pooled" together and invested into specific stocks, bonds, mortgages, etc.
A nickname for the New York stock exchange. Also known as the Big Board. More than
Weighted Average Cost of Capital (WACC)
The weighted average of the costs of the capital components
Weighted Average Cost of Capital (WACC)
A weighted average of the component costs of debt, preferred shares, and common equity. Also called the composite cost of capital.
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