Life Insurance Terms

Investment Terms



The person/people that are provided with the proceeds of the life policy when the insured dies.

Billing date

The specific day of the month where the billing deduction will take place through pre-authorized chequing/credit card in order to pay for the cost of insurance.


An individual that sells a wide variety of insurance products on behalf of several insurance companies, acting as a sales representative

Back-end load

A sales charge when mutual fund units are redeemed.

Balance sheet

A financial statement showing the nature and amount of a company's assets, liabilities and shareholders' equity.

Balanced fund

An investment or mutual fund which has an investment policy of "balancing" its portfolio generally by including bonds and shares in varying proportions influenced by the fund's investment outlook.

Bank Rate

The rate at which the Bank of Canada makes short-term loans to chartered banks and other financial institutions, and the benchmark for prime rates set by financial institutions.

Bankers' Acceptance

Short-term bank paper issued by banks, with the repayment of principal and payment of interest guaranteed by the issuer's bank.

Bear market

A declining cyclical or secular financial market.


A statistical term used to illustrate the relationship of the price of an individual security or mutual fund unit to similar securities or financial market indexes.

Bid price

An offer to buy a specific quantity of securities at a named price.

Blue chip

A term usually applied to high grade equity securities.

Board lot

A standard number of shares for trading transactions. The number of shares in a board lot varies with the price level of the security, although in most cases a board lot is 100 shares.

Board of directors

A committee elected by the shareholders of a company, empowered to act on their behalf in the management of company affairs. Directors are normally elected each year at the annual meeting.


A long-term debt instrument with the promise to pay a specified amount of interest and to return the principal amount on a specified maturity date.

Bond fund

A mutual fund whose portfolio consists primarily of bonds.

Book value

The value of net assets that belong to a company's shareholders, as stated on the balance sheet.


An agent who handles the public's orders to buy and sell securities, commodities, or other property. A commission is generally charged for this service.

Bull market

An advancing cyclical or secular financial market.

Buying on margin

Purchasing a security or fund partly with borrowed money.

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