Dictionary of Financial Terms
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Terms
Accelerated death benefit
Account balance
Account executive
Accredited investor
Accrued interest
Accumulation period
Accumulation unit
Accumulation/distribution line
Acquisition
Actively managed fund
Activist investor
Activities of daily living
Adjustable rate mortgage (ARM)
Adjustable rate preferred stock (ARPS)
Adjusted basis
Adjusted gross income (AGI)
Advance-decline (A-D) line
Advancer
Affinity fraud
Affordability index
After-hours market
After-tax contribution
After-tax income
After-tax real rate of return
Agency bond
Agent
Aggressive-growth fund
AICCCA
Air pocket stock
Alimony
All or none order (AON)
Alligator spread
Alpha
Alternative minimum tax (AMT)
Alternative order
American Association of Individual Investors (AAII)
American depositary receipt (ADR)
American depositary share (ADS)
American opportunity credit (AOC)
American-style option
Amortization
Analyst
Ankle biter
Annual meeting
Annual percentage rate (APR)
Annual percentage yield (APY)
Annual renewable term insurance
Annual report
Annual return
Annualized rate of return
Annuitant
Annuitization
Annuitize
Annuity
Annuity contract
Annuity principal
Annuity unit
Appraisal
Appraiser
Appreciation
Approved charge
Arbitrage
Arbitrageur
Arbitration
Arbitration panel
Arithmetic index
Arranger
Ask
Asked price
Assessed value
Assessor
Asset
Asset allocation
Asset class
Asset management account (AMA)
Asset-backed security
Assign
Assignment
Attained age
At-the-market
At-the-money
Auction market
Auction-rate security
Audit
Audit committee
Authorized participant
Authorized stock
Automated clearing house (ACH)
Automatic enrollment
Automatic exercise
Automatic funds transfer
Automatic investment program
Average
Average annual yield
Average daily balance
Average Directional Movement Index
Average Directional Movement Index Rating
Definitions
Accelerated death benefit
An accelerated death benefit (ADB) in a life insurance policy may allow the policyholder to qualify to use a portion of the death benefit to pay for certain healthcare expenses, such as the costs of a terminal illness or long-term care.

Using the ADB, you take cash advances from the policy, reducing the death benefit by up to a fixed percentage. The balance is paid to your beneficiaries on your death.

While an accelerated death benefit can help ease current financial burdens, including this option in your policy increases the cost of coverage. And, if you do take money out, it reduces what your beneficiaries receive.