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First Midwest Securities, Inc.
Glossary of Terms
M-Q
Market Value Adjusted Guaranteed Interest Account
(MVA)
MVAs pay interest at a guaranteed rate for a specific
period if held for the full guarantee period. If amounts are withdrawn,
transferred or annuitized before the end of the guarantee period, a market value
adjustment will be made to reflect changes in the interest rate environment from
the beginning of the guarantee period. Depending on the market, the amount
withdrawn is then adjusted, either up or down.
Net Asset Value (NAV)
The market value of one mutual fund share, calculated on
a daily basis.
nonqualified plan
A retirement plan that does not meet the requirements of
Internal Revenue Code Section 401(a), and is therefore not qualified for
favorable tax treatment. (See:
qualified plan.)
permanent life insurance
Life insurance that provides coverage for an individual's
entire life (as opposed to a specified term). Permanent life insurance offers
tax-deferred accumulation and income-tax-free-death-benefit. Universal, variable
universal and whole life insurance are all forms of permanent life insurance.
premium
Payment for insurance coverage, typically made in annual,
semiannual, quarterly or monthly increments.
prospectus
A required legal document that offers securities or
mutual fund shares for sale. The Securities Act of 1933 requires that a
prospectus explain the terms, issuer, objectives (if a mutual fund) or planned
use of the money (if securities) and historical financial statements included in
the offer.
qualified plan
A retirement plan that meets the requirements of Internal
Revenue Code Section 401(a), making it eligible for favorable tax treatment.
(See:
nonqualified plan.)
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