Life Insurance Terms

Investment Terms


In force

The status of the insurance policy in which the premium payments are up to date and the life insured is protected

Incontestable clause

A clause within the insurance policy that permits the policy to be void for up to two years starting from the date the policy was issued if the life insured failed to disclose important information or had misrepresentation of material information that would have caused the policy from being issued

Insurance Agent

See Agent.


The individual who owns the insurance policy, also known as the life insured.


The insurance company providing the insurance

Irrevocable beneficiary

A person that is listed as a beneficiary, but cannot be changed to another beneficiary without the permission of the irrevocable beneficiary.

Income funds

Mutual funds that invest primarily in fixed-income securities such as bonds, mortgages and preferred shares. Their primary objective is to produce income for investors, while preserving capital.

Index fund

A mutual fund that matches its portfolio to that of a specific financial market index, with the objective of duplicating the general performance of the market in which it invests.


A condition of increasing prices. In Canada, inflation is generally measured by the Consumer Price Index.


Payments made by a borrower to a lender for the use of the lender's money. A corporation pays interest on bonds to its bondholders.

International fund

A mutual fund that invests in securities of a number of countries.

Intrinsic value

The amount by which the price of a warrant or call option exceeds the price at which the warrant or option may be exercised.

Investment adviser

Investment counsel to a mutual fund. Also may be the manager of a mutual fund.

Investment company

A corporation or trust whose primary purpose is to invest the funds of its shareholders.

Investment counsel

A firm or individual which furnishes investment advice for a fee.

Investment dealer

A securities firm.

Investment fund

A term generally interchangeable with "mutual fund."

Investment Funds Institute of Canada (IFIC)

The mutual fund industry trade association set up to serve its members, co-operate with regulatory bodies, and protect the interests of the investing public that use mutual funds as a medium for their investments.

Issued shares

The number of securities of a company outstanding. This may be equal to or less than the number of shares a company is authorized to issue.

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