Glossary


Life Insurance Terms

Investment Terms

N

Net death benefit

The face amount including extra benefits, less outstanding amounts of the insurance policy, additional interests, and unpaid premiums

Non-contributory plan

A group plan where the employee does not contribute the premium cost and the employer pays the total premium

Non-forfeiture options

The choices that are available in a life insurance policy to the owner of the policy that if he/she discontinues the premium payments on a policy that has already accumulated a cash value, the voices are usually to take the cash value in cash, apply the value to a reduced paid-up insurance or extended term insurance, or to use the cash value as security for a loan against the policy to pay the premiums or premiums due, referred to as automatic premium loan

Net asset value

The value of all the holdings of a mutual fund, less the fund's liabilities.

Net asset value per share

Net asset value of a mutual fund divided by the number of shares or units outstanding. This represents the base value of a share of unit of a fund and is commonly abbreviated to NAVPS.

No-load fund

A mutual fund that does not charge a fee for buying or selling its shares.

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