Disability Buyout Insurance
Insurance policies that can help provide the balance of cash flow necessary to allow you to buy your disabled associate's business interests.

Disability Income Insurance
Insurance that pays benefits to help replace the insured's income for a specified term or for life if a disability occurs which is covered by the agreement.

Disability Overhead Expense Insurance
Insurance that provides a source of income to pay certain eligible business expenses while an owner is sick or injured and can't work.

Dollar-Cost Averaging
The practice of investing equal amounts of money at regular intervals, regardless of whether the security markets are rising or falling. Dollar-cost averaging does not ensure a profit or protect against a loss in a declining market.

Equity
An ownership interest in a corporation. Equity indicates ownership of stock.

Estate Plan
A plan developed with the help of qualified professionals (attorneys, CPAs, trust officer) to provide for the orderly handling, disposition and administration of an estate when the owner dies. The plan determines matters such as who will inherit assets and in what amounts, who will care for children, and who will manage the distribution of assets, taking into consideration federal estate taxes.

Executive Bonus Plan
A plan under which the employer gives an executive a bonus which is used to pay the premium on a life insurance policy in which the executive is both the insured and the owner. The executive receives the bonus as taxable income. The bonus is tax deductible by the employer assuming it qualifies as reasonable compensation to the executive.

Fixed Income Securities
Investments that constitute an IOU to the investor from the issuer, often a government or corporation, offering specific payments at predetermined times. The market value of these securities changes depending on the direction of market interest rates. Bonds and government securities are examples of fixed income securities.

Front-End Load
Sales charge applied to an investment at the time of initial purchase and taken directly from the purchase price.

Defined Contribution Plan
A defined contribution plan provides that the employer make a stated annual contribution to the plan. The amount of each employee's retirement benefit ultimately depends on the amount of contributions and the investment performance of that particular employee's account. Some defined contribution plans also allow for employee contributions.