Glossary


Life Insurance Terms

Investment Terms

R

Rated premiums

Premiums that are higher-priced

Reduced paid-up insurance

A form of insurance that is available as a non-forfeiture option, and provides the insurance payable for a reduced amount, at the same time and in the same manner as the original policy

Reinsurance

Process where one insurer insures the excess risk of another insurer (multiple insurers)

Reinstatement clause

A clause in the policy that assists the policy owner when the insurance contract lapses because of a non-payment of a premium

Replacement

When the life insurance policy or part of the policy is replaced by another

Riders

An extra coverage or benefit, attached to the main policy that is added at a cost to project against other losses

Ratio withdrawal plan

A type of mutual fund withdrawal plan that provides investors with an income based on a percentage of the value of units held.

Real estate fund

A mutual fund that invests primarily in residential and/or commercial real estate to produce income and capital gains for its unitholders.

Real estate investment trust

A closed-end investment company that specializes in real estate or mortgage investments.

Redeemable

Preferred shares or bonds that giver the issuing corporation an option to repurchase securities at a stated price. These are also known as callable securities.

Registered Education Savings Plan (RESP)

A plan that enables a contributor, on a tax deferral basis, to accumulate assets on behalf of a beneficiary to pay for a post secondary education.

RegisteredRetirement Income Fund (RRIF)

A maturity option available for RRSP assets to provide a stream of income at retirement.

Registered Retirement Savings Plan (RRSP)

A retirement savings plan to hold amounts deducted from taxable income, within certain limits, in a tax deferred state. There are various investment options and a tax deferral on investment income and gains. Available to individuals to and including 71 years of age, but must be collapsed by the end of the year in which the holder turns 71 years of age.

Retained earnings

The accumulated profits of a company. These may or may not be reinvested in the business.

Retractable

Bonds or preferred shares that allow the holder to require the issuer to redeem the security before the maturity date.

Rights

Options granted to shareholders to purchase additional shares directly from the company concerned. Rights are issued to shareholders in proportion to the securities they may hold in a company.

Risk

The possibility of loss; the uncertainty of future returns.

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