Broker-Dealer
A firm that buys and sells securities, including mutual funds.

Business Continuation Insurance
Life insurance designed to provide funds so the remaining owners or the business can buy the business interest of a deceased owner. Disability buyout insurance is often used to fund the purchase of the business interest of a disabled owner.

Business Reducing Term
Disability Income Insurance coverage that can help pay business loans, employment contracts and similar business obligations lasting 5-30 years.

Cafeteria Plan (Section125)
A benefit plan that lets employees select among the medical, life insurance, disability income insurance and other types of coverage that best meet their specific needs. Also called a flexible benefit plan, it offers tax advantages to employers and employees.

Capital Gain
The increase in value of an asset (such as stock or real estate) between the time it is purchased and the time it is sold.

Certificates of Deposit (CD)
Debt instruments typically issued by banks; deposits may be insured by a U.S. government agency up to $100,000 per depositor per bank. The issuing banks usually pay a guaranteed fixed rate of interest. Maturity dates for CDs can range from a few weeks to a few years.

Common Stock
An ownership interest in a corporation represented by shares that constitute a claim on the corporation's assets.

Compound Interest
Interest that is calculated by applying the stated percentage rate both to the original capital amount and to the accumulated interest over time.

Death Benefit
An amount payable to a beneficiary of a life insurance policy, qualified plan and/or a variable annuity. Payment is generally made upon the death of the insured under an insurance policy, or in the case of a qualified plan, upon the death of the plan participant. In the case of a variable annuity, payment is made upon the death of the annuitant. Methods of payment can vary, depending upon the terms of the plan/contract, and applicable state laws.

Bond Fund
A pool of money that is managed by a professional fund manager and that invests in different kinds of investment grade debt obligations such as corporate bonds, mortgage bonds, mortgage backed bonds and municipal bonds.