GCPA Glossary

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Benefit period
The length of time specified in a policy that benefits will be paid to an insured.

Blue Chip Stock Fund
A mutual fund that consists of a portfolio of large or well known companies for the purposes of achieving growth. Refer to the fund's prospectus for complete information on risks, fees and expenses.

Bond
A bond is an IOU issued by a corporation, the government or its agencies. The issuer promises to pay bondholders a stated rate of interest and to repay the principal at maturity.

Broker
A licensed individual who may sell securities and/or insurance.

Brokerage firm
A firm that sells securities. Brokerage firms are most known for the sale of stock.

Bull market
A good market in which prices of securities increase greatly over a specific time period.

Business overhead expense
Coverage which helps keep a business operating when a business owner is disabled. Provides short-term benefits to cover fixed operating expenses during total or partial disability.

Capital appreciation
Capital appreciation is the increase in the value of your original investment.

Cash equivalents
Highly liquid, relatively stable investments which can be easily converted into cash, such as Treasury bills and money market funds.

Cash reserves
Cash deposits, short-term bank deposits, money market instruments and Treasury bills.

Cash surrender value
The amount of money which an insurance policyowner will receive as a refund if the policyowner cancels certain types of insurance policies.

Certificates of deposit (CD)
A savings instrument offered by a bank which offers a specified interest rate for a specified period of time. Bank CDs are FDIC insured and offer a fixed rate of return.

Claim
A request for payment under the terms of a policy.

Closed-end fund
A type of fund that offers only a fixed amount of shares, usually sold through a brokerage firm by a broker.

Closing price
The price of a stock or other security at the end of the day.

Cognitive impairment
A diminished mental capacity such as difficulty with short-term memory, often associated with Alzheimer's Disease or Senile Dementia.

Commercial papers
Short-term debt (due in less than 90 days) issued by corporations. Commercial paper has no collateral backing it.

Common stock
The shares offered by a corporation giving a shareholder partial ownership of the company as well as privileges including voting rights and receipt of dividends.

Community based care setting
Programs which provide services at a convenient location in the community. Commonly these programs provide assistance with meals, transportation or homemaking and also may include professional nursing or therapy services provided by licensed care givers in the home.

Compound interest
Interest earned not only on the original investment, but also on accumulated earnings.

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