25 I will teach you several terms from the financial and insurance world that can be useful for a better understanding of the subject. Understanding these terms will facilitate your understanding of the information that will be shared with you during a meeti terms
My name is Luka Frias, and I have been studying finance and insurance at Montmorency College for three years. Since the age of 14, I knew that I wanted to enter this field, partly thanks to my family who greatly inspired me in my career choice. This glossary is for everyone, because many people cannot understand certain terms when meeting with a professional and this can affect the understanding of the information that the professional will share with you. For example, in insurance, by not understanding certain terms, you may lack protection and when an accident occurs, you may not be protected against this risk resulting in non-compensation. My glossary will teach people the definition of many words that can be confusing. To find the words, I used a notebook from one of my old courses called English for the financial word, and for their definitions, I used Google. My glossary contains 25 words related to finance and insurance. There are definitions for words in the categories of car, home, and personal insurance. In finance, the categories are banks loans, mortgages, and more. Finally, I hope my readers will learn new things that could facilitate their interactions with a financial or insurance professional.
A line of credit
A sentence with a noun phrase
A line of credit is a flexible loan from a lender that gives you access to a pre-set amount of money, allowing you to borrow, pay back, and borrow again up to a specific credit limit.
Example: Hello Mr. Banker, I would like to obtain a line of credit for a project.
en: Une marge de crédit
All perils
noun group
It is a protection that covers all risks to your vehicle and your home unless the risk is present in the exclusions.
Example: I suffered material damage due to a collision with a tree, but thanks to my all perils policy I will be compensated.
en: Tous risques
Bodily injuries
noun group
Personal injury is a legal term meaning bodily, mental, or emotional injury, as opposed to material injury.
Example: I injured my leg in a car accident.
en: Dommages corporels
Civil liability
noun group
Civil liability is a guarantee that covers material and bodily damage resulting from an accident caused to a third party by you, your children, the objects you use or the domestic animals belonging to you or in your care.
Example: I caused bodily injury to another person. So, my civil liability will compensate the damage caused to the person.
en: Responsabilité civil
Compensation
noun
something, typically money, awarded to someone as a recompense for loss, injury, or suffering.
Example: I received compensation for material damage to my house.
en: Indemnisation
Consolidate debts
verbal group
Consolidating debt is when you take out a single, new loan to pay off several existing debts
Example: To pay off all my debts I have to consolidate debts
en: Consolider les dettes
Debts
noun
something, typically money, that is owed or due.
Example: I borrowed money from the bank. So, I have a debt to repay.
en: Dettes
Deductible
noun
In an insurance policy, the deductible is the amount paid out-of-pocket by the policyholder before an insurance provider pays the expenses.
Example: My car suffered material damage. The damage totals $2,500, and I have a $500 deductible for this claim. So, the compensation will be $2,000.
en: Franchise
Dividend
a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
Example: I received a lot of dividends from my stock
en: Dividende
Down payment
noun group
A down payment is a sum of money the buyer pays at the outset of a large transaction, such as for a home or car, often before financing the rest.
Example: I put a down payment of 50,000 for my house
en: Mise de fond
Eligible
adjective
Someone or something meets the criteria for protection or compensation
Example: I am eligible for compensation because the risk is part of my contract
en: Admisible
Emergency fund
noun group
Is a personal budget set aside as a financial safety net in case of future incidents or unforeseen expenses.
Example: I am saving money because I have diabetes and I want to have enough money in case of an emergency.
en: Fonds d'urgence
Fluctuate
verb
rise and fall irregularly in number or amount.
Example: Stock market prices keep fluctuating this week
en: Fluctuer
Interest rate
noun group
If you are borrowing money, the interest rate (or lending rate) is the amount you are charged for doing so – shown as a percentage of the total amount of the loan
Example: The interest rate for my mortgage is 5%
en: Taux d'intérêt
Premium
It a noun
The premium payment term in insurance refers to the duration or period during which the policyholder is required to make premium payments for their insurance policy
Example: What is the annual premium I have to pay?
en: Prime
Property damage
noun group
harm to real or personal property that occurred due to natural forces or someone's act or omission
Example: A tree fell on my house and the total property damage is estimated at $10,000
en: Dommages matériels
Registered retirement savings plan (RRSP)
noun group
An RRSP is a retirement savings plan that you set up and we register, to which you or your spouse or common-law partner contributes
Example: I contribute to my RRSP to ensure I have a comfortable retirement.
en: régime enregistré d’épargne-retraite (REER)
Riders
noun
A contract amendment is a written document that modifies, supplements, or clarifies one or more clauses of an existing, signed contract. It is used to adjust the terms of an agreement without completely replacing it and must be signed by all original parties to the contract to be valid.
Example: I suffered material damage to my car, but I didn't have coverage for this risk in my policy. So, I'm going to contact my insurer to add a rider to cover my lack of coverage.
en: Avenants
Standard of living
noun group
the degree of wealth and material comfort available to a person or community.
Example: My standard of living exceeds what I can afford.
en: Niveau de vie
Tax deferral
noun group
a strategy that allows businesses to delay paying taxes on income until a later date, often when tax rates are lower or when funds can be withdrawn more efficiently.
Example: I contributed $5,000 to my RRSP. So I won't be taxed right away.
en: Report d'impôt
Tax Free Savings Account (TFSA)
noun group
It's a way for individuals who are 18 years of age or older and have a valid Social Insurance Number (SIN) to put money aside tax-free during their lifetime.
Example: This year I invested 8,000 in my tax-free savings account.
en: Le compte d’épargne libre d’impôt
Tax-deductible
adjectival group
able to be deducted from taxable income when calculating income tax due.
Example: I am self-employed and I use my vehicle for professional reasons, so I will be able to deduct vehicle-related expenses.
en: Déductible d'impôt
To budget
verb
A comprehensive financial plan that outlines anticipated income, expenses, and resource allocations within a specified timeframe.
Example: To have more money I spend less and I pay off my debts
en: Budgétiser
Total disability
noun group
Prevents the injured person from fully performing their normal functions due to an accident
Example: I was in a serious car accident. I suffered permanent injuries that prevent me from working and earning an income.
en: L'invalidité totale
Waiting period
noun group
The waiting period is a term in the law of obligations which indicates a period of latency.
Example: In my disability insurance contract I have a 30-day waiting period.
