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Definition of Time premium
Also called time value, the amount by which the option price exceeds its intrinsic value. The
Yearly amount payable by a client for a policy or component.
A benefit that automatically forfeits premium payments.
Related: premium payback period.
Line depicting the operating activities and cash flows for a firm over a particular period.
the additional value inherent in the control interest as contrasted to a minority interest, which reflects its power of control
The percentage by which the conversion price in a convertible security exceeds the
the time between the placement of an order to
A differential in promised yield that compensates the investor for the risk inherent in
Difference in promised yields between a default-free bond and a riskier bond.
a source document that indicates, for each employee, what jobs were worked on during the day and for what amount of time
A currency trades at a forward premium when its forward price is higher than its spot price.
the amount of time spent in storing inventory or
the time taken to perform quality control activities
Systems that schedule materials/inventory to arrive exactly as they are
a philosophy about when to do something;
A cluster of manufacturing, design, and delivery practices designed to
The term for several manufacturing innovations that
just-in-time manufacturing system
a production system that attempts to acquire components and produce inventory only as needed, to minimize product defects, and to
a system that maps the skill sets employees
see cycle time
A premium that remains unchanged throughout the life of a policy
Level Premium Life Insurance
This is a type of insurance for which the cost is distributed evenly over the premium payment period. The premium remains the same from year to year and is more than actual cost of protection in the earlier years of the policy and less than the actual cost of protection in the later years. The excess paid in the early years builds up a reserve to cover the higher cost in the later years.
Forward rate minus expected future short-term interest rate.
market risk premium
Risk premium of market portfolio. Difference between market return and return on risk-free Treasury bills.
A money manager who assumes he or she can forecast when the stock market will go up and down.
Extra average return from investing in longversus short-term Treasury securities.
The option price.
A pay premium of 50 percent of the regular rate of pay that is earned
1) Amount paid for a bond above the par value.
This is your payment for the cost of insurance. You may pay annually, semi-annually, quarterly or monthly. The least expensive method is annually. Using any of the other payment modes will cost you more money. For example, paying monthly will cost about 17% more. If you pay annually and terminate your coverage part way through the year, you may not receive a refund for the remaining months to the annual renewal date.
Annual amount payable, by a client, for selected product or service.
A bond that is selling for more than its par value.
Premium (Credit Insurance)
Annual or monthly amounts payable, by a client, for a selected insurance coverage to insure debt obligations to their creditors are protected.
A nonqualified stock option whose option price is set substantially
Payment schedule of policy premiums, usually selected by the policy owner (monthly, quarterly, annually).
After premiums have been paid for a number of years, further annual premiums may be paid by the current dividends and the surrender of some of the paid-up additions which have built up in the policy. In effect, the policy can begin to pay for itself. Whether a policy becomes eligible for premium offset, the date on which it becomes eligible and whether it remains eligible once premium offset begins, will all depend on how the dividend scale changes over the years. Since dividends are not guaranteed, premium offset cannot be guaranteed either.
the actual time consumed performing the
A real time stock or bond quote is one that states a security's most recent offer to sell or bid (buy).
The reward for holding the risky market portfolio rather than the risk-free asset. The spread
The additional rate of return required on a risky project
Expected return in excess of risk-free return as compensation for risk.
The difference between the yields of two bonds because of differences in their risk.
The difference between the required rate of return on a riskless asset with the same expected life.
Risk premium approach
The most common approach for tactical asset allocation to determine the relative
the actual time consumed performing the functions
Single-premium deferred annuity
An insurance policy bought by the sponsor of a pension plan for a single
Tender offer premium
The premium offered above the current market price in a tender offer.
Excess of the yields to maturity on long-term bonds over those of short-term bonds.
A device used to stamp an employee’s incoming or outgoing time
Interest-bearing deposit at a savings institution that has a specific maturity.
See term deposit.
Demand for payment at a stated future date.
Time to maturity
The time remaining until a financial contract expires. Also called time until expiration.
Time until expiration
The time remaining until a financial contract expires. Also called time to maturity.
Time value of an option
The portion of an option's premium that is based on the amount of time remaining
Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar
Time-weighted rate of return
Related: Geometric mean return.
A document or electronic record on which an employee records his or
representation of the amounts and timing of all
times interest earned
A ratio that tests the ability of a business to make
Earnings before interest and tax, divided by interest payments.
Times Interest Earned Ratio
A measure of how well a company is able to meet its interest
the time consumed by moving products or
time available or needed to effect a turnaround.
premiums paid for coverage not yet provided.
This term relates to participating whole life insurance and the use of the dividend to reduce or completely eliminate the need for future premiums. In the 1980's life insurance company's profits from investment were exceedingly high compared to historical experience. It became common for a salesperson to show new prospective clients how quickly his or her insurance company's dividends would cover the future cost of future premiums. In some cases more emphasis was put on the value of future dividends than on the fact that future dividends were not guaranteed and could only be projected based on current earnings. Many life insurance buyers have since learned that the dividends they expected in the 80's no longer exist in the 90's and they are continuing to dig into their pockets to pay insurance premiums.
Waiver of Premium
This is an option available to the applicant for life insurance which sets certain conditions under which an insurance policy will be kept in full force by the insurance company without the payment of premiums. Very specifically, a life insured would have to become totally disabled through injury or illness for a period of six months before the benefit kicks in. When it does, the insurance company retroactively pays premiums from the beginning of the disability until the time the insured is able to perform some form of regular activity. 'Totally disabled' is highlited here, because that is what is required to receive this benefit.
Waiver of Premium
A benefit that allows CLA to pay premiums on behalf of the insured.
capital asset pricing model (CAPM)
Theory of the relationship between risk and return which states that the expected risk
CARs (cumulative abnormal returns)
a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock.
As the term dividend relates to a corporation's earnings, a dividend is an amount paid per share from a corporation's after tax profits. Depending on the type of share, it may or may not have the right to earn any dividends and corporations may reduce or even suspend dividend payments if they are not doing well. Some dividends are paid in the form of additional shares of the corporation. Dividends paid by Canadian corporations qualify for the dividend tax credit and are taxed at lower rates than other income.
An agreement in which one party, for an upfront premium, agrees to compensate the other at
Fixed-price tender offer
A one-time offer to purchase a stated number of shares at a stated fixed price,
A specific period of time after a premium payment is due during which the policy owner may make a payment, and during which, the protection of the policy continues. The grace period usually ends in 30 days.
Interest rate agreement
An agreement whereby one party, for an upfront premium, agrees to compensate the
In 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.
Temporary Life Insurance
Temporary insurance coverage is available at time of application for a life insurance policy if certain conditions are met. Normally, temporary coverage relates to free coverage while the insurance company which is underwriting the risk, goes through the process of deciding whether or not they will grant a contract of coverage. The qualifications for temporary coverage vary from insurance company to insurance company but generally applicants will qualify if they are between the ages of 18 and 65, have no knowledge or suspicions of ill health, have not been absent from work for more than 7 days within the prior 6 months because of sickness or injury and total coverage applied for from all sources does not exceed $500,000. Normally a cheque covering a minimum of one months premium is required to complete the conditions for this kind of coverage. The insurance company applies this deposit towards the cost of a policy at its issue date, which may be several weeks in the future.
Variable life insurance policy
A whole life insurance policy that provides a death benefit dependent on the
Graph of yields (vertical axis) of a particular type of security
Yield to call
The percentage rate of a bond or note, if you were to buy and hold the security until the call date.
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