Life Insurance Terms

Investment Terms


Effective date

The date in which the life insurance contact begins to take effect.

Emergency fund

In case of an emergency, financial planners advise clients to have income equivalent of three months

Employment insurance (EI)

Insurance that provides the benefits for those unemployed, under maternity/paternal leave, sick, or under compassionate care.

Estate planning

The process of distribution of one's estate according to the wishes of the estate owner.

Exclusion rider

A rider that excludes some coverage

Expiry date

The day the term insurance coverage ends for the time period

Extended term insurance

A type of paid-up life insurance in order to continue the protection of the full coverage amount for an extended, but limited time period

Earned income

For tax purposes, earned income is generally the money made by an individual from employment. It also includes some taxable benefits. Earned income is used as the basis for calculating RRSP maximum contribution limits.

Earnings statement

A financial statement showing the income and expenses of a business over a period of time. Also known as an income statement or profit and loss statement.


The net worth of a company. This represents the ownership interest of the shareholders (common and preferred) of a company. For this reason, shares are often known as equities.

Equity fund

A mutual fund whose portfolio consists primarily of common stocks.

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