Financial terms, in plain English
The words that come up across insurance, finance, investments, and tax — defined without the jargon.
Term life insurance
Term life insurance is coverage for a set number of years — often 10, 20, or 30 — at a level premium. It pays a death benefit only if you die during that term, which is why it is the most affordable way to replace income while a family is growing.
Whole life insurance
Whole life insurance is permanent coverage that lasts your entire life and builds cash value you can borrow against. Premiums are higher than term but never change, which suits lifelong needs like estate or special-needs planning.
Indexed universal life (IUL)
Indexed universal life is permanent insurance whose cash value earns interest tied to a market index with a floor of zero, so a down market does not reduce principal — though the upside is capped by a participation rate or cap.
Annuity
An annuity is a contract with an insurance company that converts a lump sum into income for a set period or for life. Its defining feature is longevity protection: income you cannot outlive.
Fixed-indexed annuity
A fixed-indexed annuity credits interest linked to a market index with a guaranteed floor of zero, so you do not lose principal in a down year — in exchange for a cap or participation rate that limits the upside.
DIME method
DIME is a way to size life insurance by adding your Debts, Income to replace, Mortgage balance, and Education costs. It turns a vague 'how much do I need?' into a defensible coverage number.
Human Life Value
Human Life Value is an estimate of the economic value of your future earnings to the people who depend on you — the income a life-insurance policy is really designed to replace.
Bullion
Bullion is gold or silver valued essentially for its metal content and priced close to the current spot price, as opposed to rare coins whose value also reflects scarcity and condition.
Numismatic (rare) coin
A numismatic coin carries value beyond its metal from scarcity, condition, and collector demand. Rare coins can move differently from spot metal — sometimes an advantage, sometimes an added risk.
Spread
The spread is the gap between the price you pay to buy an asset and the price you would receive to sell it. On coins and metals it means short-term flips rarely pay; these are longer-term holdings.
Mortgage protection
Mortgage protection is life — and sometimes disability — coverage sized to pay off or keep up a mortgage if the earner dies or cannot work, so a family is not forced to rush a home sale.
Tax-deferred growth
Tax-deferred growth means an account's earnings are not taxed until you withdraw them, letting more money compound in the meantime. It is a feature of annuities and certain retirement and insurance vehicles.
Tax-incentive planning
Tax-incentive planning is legally arranging income, investments, business, and estate to claim the incentives the tax code already offers — on purpose, and coordinated with the rest of your plan.