Immediate annuity
An annuity where, income benefits begin one annuity period after the annuity is issued. If it is specified that benefits are paid annually, then the benefit payments begin one year after issue.
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Income fund
A fund that primarily seeks current income rather than growth of capital. It will tend to invest in stocks and bonds that normally pay high dividend and interest.
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Interest rate risk
The possibility that a bond's or bond fund's value will decrease due to rising interest rates.
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Invalid contract
Life insurance is a contract and the law provides that there must be an insurable interest between the life insured and the insured. If it is subsequently proven that this did not exist when the insurance contract was effected, it can be declared as not valid and set aside.
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Investment
An asset acquired for the purpose if producing income and capital gains to its owner.
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Investment objective
The financial goal (long term growth, current income, etc) that an investor or a fund pursues.
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Investment trust
A corporation, partnership or trust that invests the pooled monies of many investors. It provides greater professional management and diversification of investments than most investors can obtain independently. Mutual funds, or "open-ended" investment companies, are the most popular for of investment company.
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