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Definition of Preferred Beneficiary
Used in older contracts to confer the same rights as an irrevocable beneficiary. Applied to family members.
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.
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.
Publicly traded issues that may be collateralized by mortgages and MBSs.
Floating rate preferred stock, the dividend on which is adjusted every
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.
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.
One who receives income from a trust.
Legal designation that cannot be contested. (See beneficiary)
A biased expectations theory that asserts that the
Monthly income preferred security (MIP)
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.
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