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Non-Smoker Discount |
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Definition of Non-Smoker DiscountNon-Smoker DiscountIn October 1996 it was announced in the international news that scientists had finally located the link between cigarette smoking and lung cancer. In the early 1980's, some Canadian Life Insurance Companies had already started recognizing that non-smokers had a better life expectancy than smokers so commenced offering premium discounts for life insurance to new applicants who have been non-smokers for at least 12 months before applying for coverage. Today, most life insurance companies offer these discounts.
Related Terms:ADF (annuity discount factor)the present value of a finite stream of cash flows for every beginning $1 of cash flow. DLOC (discount for lack of control)an amount or percentage deducted from a pro rata share of the value of 100% of an equity interest in a business, to reflect the absence of some or all of the powers of control. DLOM (discount for lack of marketability)an amount or percentage deducted from an equity interest to reflect lack of marketability. discount ratethe rate of return on investment that would be required by a prudent investor to invest in an asset with a specific level risk. Also, a rate of return used to convert a monetary sum, payable or receivable in the future, into present value. fractional interest discountthe combined discounts for lack of control and marketability. g the constant growth rate in cash flows or net income used in the ADF, Gordon model, or present value factor. QMDM (quantitative marketability discount model)model for calculating DLOM for minority interests r the discount rate Accretion (of a discount)In portfolio accounting, a straight-line accumulation of capital gains on discount All or noneRequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable Bank discount basisA convention used for quoting bids and offers for treasury bills in terms of annualized Cash discountAn incentive offered to purchasers of a firm's product for payment within a specified time Deep-discount bondA bond issued with a very low coupon or no coupon and selling at a price far below par DiscountReferring to the selling price of a bond, a price below its par value. Related: premium. Discount bondDebt sold for less than its principal value. If a discount bond pays no interest, it is called a Discount factorPresent value of $1 received at a stated future date. Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discount rateThe interest rate that the Federal Reserve charges a bank to borrow funds when a bank is Discount securitiesnon-interest-bearing money market instruments that are issued at a discount and Discount windowFacility provided by the Fed enabling member banks to borrow reserves against collateral Discounted basisSelling something on a discounted basis is selling below what its value will be at maturity, Discounted cash flow (DCF)Future cash flows multiplied by discount factors to obtain present values. Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an DiscountingCalculating the present value of a future amount. The process is opposite to compounding. Dividend discount model (DDM)A model for valuing the common stock of a company, based on the Documented discount notesCommercial paper backed by normal bank lines plus a letter of credit from a Forward discountA currency trades at a forward discount when its forward price is lower than its spot price. Monetary / non-monetary methodUnder this translation method, monetary items (e.g. cash, accounts Non-cumulative preferred stockPreferred stock whose holders must forgo dividend payments when the Non-financial servicesInclude such things as freight, insurance, passenger services, and travel. Non-insured plansDefined benefit pension plans that are not guaranteed by life insurance products. Related: Non-parallel shift in the yield curveA shift in the yield curve in which yields do not change by the same Non-reproducible assetsA tangible asset with unique physical properties, like a parcel of land, a mine, or a Non-tradablesRefer to goods and services produced and consumed domestically that are not close Noncash chargeA cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. Noncompetitive bidIn a Treasury auction, bidding for a specific amount of securities at the price, whatever it Nondiversifiability of human capitalThe difficulty of diversifying one's human capital (the unique Nondiversifiable riskRisk that cannot be eliminated by diversification. Nonmarketed claimsClaims that cannot be easily bought and sold in the financial markets, such as those of NonrecourseWithout recourse, as in a non-recourse lease. NonredeemableNot permitted, under the terms of indenture, to be redeemed. NonrefundableNot permitted, under the terms of indenture, to be refundable. Nonsystematic risknonmarket or firm-specific risk factors that can be eliminated by diversification. Also Original issue discount debt (OID debt)Debt that is initially offered at a price below par. Pure-discount bondA bond that will make only one payment of principal and interest. Also called a zerocoupon Discounted cash flow (DCF)A method of investment appraisal that discounts future cash flows to present value using a discount rate, which is the risk-adjusted cost of capital. Non-production overheadA general term referring to period costs, such as selling, administration and financial expenses. Purchase discountsA contra account that reduces purchases by the amount of the discounts taken for early payment. Sales discountsA contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales. discounted cash flow (DCF)Refers to a capital investment analysis technique Continuous DiscountingThe process of calculating the present value of a stream of future Discount RateThe rate of interest used to calculate the present value of a stream DiscountingThe process of calculating the present value of a stream of future ad hoc discounta price concession made under competitive pressure (real or imagined) that does not relate to quantity purchased discountingthe process of reducing future cash flows to present value amounts discount ratethe rate of return used to discount future cash noncontrollable variancethe fixed overhead volume variance; non-negativity constrainta restriction in a linear programming non-value-added (NVA) activityan activity that increases the time spent on a product or service but that does not increase its worth or value to the customer risk-adjusted discount rate methoda formal method of adjusting for risk in which the decision maker increases the rate used for discounting the future cash flows to compensate for increased risk Discount curveThe curve of discount rates vs. maturity dates for bonds. Discounted cash flowA technique that determines the present value of future cash Sales discountA reduction in the price of a product or service that is offered by the constant-growth dividend discount modelVersion of the dividend discount model in which dividends grow at a constant rate. discount factorPresent value of a $1 future payment. discount rateInterest rate used to compute present values of future cash flows. dividend discount modelComputation of today’s stock price which states that share value equals the present value of all expected future dividends. DiscountThe percentage amount at which bonds sell below their par value. Also the percentage amount at which a currency sells on the forward market below its current rate on the spot market. Discount BondA bond with no coupons, priced below its face value; the return on this bond comes from the difference between its face value and its current price. DiscountingCalculating the present value of a future payment. Discount RateThe interest rate at which the Fed is prepared to loan reserves to commercial banks. Discount WindowThe Federal Reserve facility at which reserves are loaned to banks at the discount rate. Nonqualified Retirement PlanA pension plan that does not follow ERISA and Nonqualified Stock OptionA stock option not given any favorable tax treatment Nonmarketable SecurityA debt or equity security for which there is no posted price or bidand- Nonrecurring ItemsRevenues or gains and expenses or losses that are not expected to recur Nonconforming materialAny inventory item that does not match its original design Nonsignificant part numberAn identifying number assigned to a part that conveys Non-Medical LimitThis is the maximum value of a policy that an insurance company will issue without the applicant taking a medical examination, although medical questions are invariably asked during the application process. When a non-medical issue is made through group insurance, in most cases, medical data is not requested at all. Discount RateA rate of return used to convert a monetary sum, payable or receivable in the future, into present value. Discounted Cash FlowTechniques for establishing the relative worth of a future investment by discounting (at a required rate of return) the expected net cash flows from the project. DiscountingThe process of finding the present value of a series of future cash flows. discounting is the reverse of compounding. Discounting of Accounts ReceivableShort-term financing in which accounts receivable are used as collateral to secure a loan. The lender does not buy the accounts receivable but simply uses them as collateral for the loan. Also called pledging of accounts receivable. Supplier DiscountAn amount deducted from an invoice by a supplier in exchange for quick payment (a typical example might be a 2% discount if paid in 10 days or the full amount of the invoice in 30 days). NSF (non-sufficient funds)This appears on your statement if there are insufficient funds in your account to cover a cheque that you have written or a pre-authorized payment that you have already arranged. You will be charged a service fee for non-sufficient funds. Non-participating PolicyA type of insurance policy or annuity in which the owner does not receive dividends.
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