GCPA Glossary

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Accidental death and dismemberment (AD&D)
Coverage available on a life or disability policy, or an option benefit, which pays scheduled amounts in the event of an accidental death or dismemberment.

Activities of daily living (ADLs)
Routine daily activities essential to self-care and independent living, including: bathing, dressing, toileting, continence, transferring or mobility and eating.

Adjusted Gross Income
An amount used in the calculation of income tax liability. Gross income (salary, dividends and interest, capital gains, business income, etc.) less certain adjustments.

After-tax return
The return on an investment taking into account the effect of any taxes due.

Agency issues
Debt securities (bonds) issued by various agencies of the U.S. government, such as the Federal National Mortgage Association, the Government National Mortgage Association and the Federal Home Loan Bank.

Aggressive Growth Fund
A mutual fund whose investment objective is long term capital growth. Aggressive growth funds carry a high degree of risk. Mutual funds are sold by prospectus; a prospectus contains complete information on risks, fees and expenses, and should be read carefully before investing.

Alternate care facility
A non-nursing home facility which offers around-the-clock personal assistance that can't be provided effectively in your home.

Annual report
Document containing information on a publicly held company's financial condition, containing a description of the firm's operation, balance sheet, income and cash flow statements. The annual report is required to be distributed to shareholders.

Annuity
A contract issued by a life insurance company designed to provide regular payments immediately, or at some point in the future. As a long-term savings vehicle, a deferred annuity may be fixed or variable. A fixed annuity provides for a guaranteed minimum amount of interest, whereas a variable annuity's earnings are based on the performance of the underlying subaccounts. Any earnings accumulate tax-deferred until withdrawn.

Appreciation
The increase in value of an asset over a period of time.

Assessment
The process of placing a value on an asset.

Asset
Something of value.

Asset allocation
A method of investing that distributes assets among different asset classes, such as stocks, bonds, and cash. The goal of asset allocation is to help manage the risk of the overall portfolio.

Asset class
There are three broad asset classes: stocks, bonds and cash/cash equivalents.

Assisted daily living facility
A housing facility which provides food, shelter and limited personal care along with the capacity to respond to unscheduled medical needs.

Attending physician statement (APS)
A report completed by a physician, documenting the current and prior health history of the patient. This report is used in underwriting applications for life and disability insurance, and for processing claims under life and disability insurance.

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