HUIZENG HU / Getty Images What Is a Life Insurance Maturity Date? When a permanent life insurance policy matures, the “maturity value” of the policy is paid out to the policy owner and coverage ends. Maturity dates are based on the age of the insured person and vary, depending on when the policy was issued. The maturity value to be paid out is specified in the contract. For example, it may be equal to the cash value of the policy or the face amount....

The Cash Advance Fee Your credit card issuer isn’t really doing you any favors by letting you take out a cash advance, which can be done via ATM or through convenience checks your card issuer sends in the mail. They’ll make money off the transaction by charging a cash advance fee each time you take out a cash advance against your credit limit. That’s on top of interest charged as of the day you make the cash advance....

A currency crisis can evolve from a central bank’s desire to prop up its currency’s value to keep investment capital within its borders. Emerging markets went through capital outflows in early 2014, which led their currencies to depreciate. Central banks responded by raising interest rates to attract investors. China has maintained a peg with the U.S. dollar for decades. The government has never had trouble defending the peg, thanks to its large foreign reserves, but that has caused an imbalance in other areas of the market....

The Loan-to-Value Ratio Lenders generally won’t let you borrow more than 80% or so of your home’s value, taking into account your original purchase mortgage as well as a potential home equity loan. The percentage of your home’s available value is called the loan-to-value (LTV) ratio. When considering a first and a second mortgage, lenders will want to know the combined LTV of both loans. What’s an acceptable LTV can vary from lender to lender....

However, labor shortages can be more complicated. Some jobs are harder to fill, and some industries have a more challenging time recruiting and retaining employees than others. Here’s what you need to know about labor shortages, the industries and occupations with the highest demand for workers, and how a labor shortage can benefit your career. Definition and Example of a Labor Shortage When the demand for workers for a particular occupation is greater than the supply of workers who are qualified, available, and willing to do that job, there is a labor shortage....

Alternate names: Monroney label, window sticker Say you were in the market for a new Toyota Camry. The Monroney sticker would tell you information like: The car’s retail priceSafety featuresStandard equipment Optional factory-added equipment Mileage per gallonWhere it was assembled This information can be incredibly helpful when comparing vehicles to determine which one is right for you. For instance, the Monroney sticker may tell you that one Toyota Camry comes with a cold-weather package that includes a heated steering wheel and seats, while another doesn’t....

Learn more about mortgage bankers, how they work, and how they’re different from mortgage brokers. Definition and Examples of Mortgage Bankers A mortgage banker can be a person, an institution, or a company that helps homebuyers secure a mortgage and close on a home. They are a type of loan officer who specializes in mortgages and can act in a sales capacity. Mortgage bankers who work for a financial institution must protect their bank’s interests, which means they’ll be screening mortgage applications for suitability and analyzing the risks of approving these applicants....

Let’s take a look at no-cash-out refinances, how they work, and their differences when compared to cash-out refinances. Definition and Examples of No-Cash-Out Refinances Also known as traditional refinancing, a no-cash-out refinance is exactly as it sounds: It is a refinance that allows you to change the term length, the rate, or both with a new mortgage. You aren’t able to withdraw any equity from your property when using a no-cash-out refinance....

While qualified annuities are a solid investment option for some people, they aren’t a good choice for everyone. Learn more about this insurance product so you can decide if it’s right for you. Definition and Examples of Qualified Annuities Annuities are insurance products that come in two general flavors: deferred and immediate. Deferred annuities are tax-advantaged accounts that can help you build wealth over a period of years, often decades....

Acronym: QJV As a hypothetical example, let’s say that Eric and Sarah are married and own a trucking company that is not registered as a state entity. They are the only two partners in the business, file a joint tax return each year, and each own 50% of the company. These factors make the couple eligible to file as a qualified joint venture. If the couple had a net income of $200,000, they would each file $100,000 on their IRS Form Schedule C....

One of the biggest disadvantages of a traditional CD is that you’re locked into a set interest for the life of your term. However, with a step-up CD, your rate automatically increases over time, so you can take advantage of rising interest rates. Alternate name: Step-rate CD You’ll hold a step-up CD for a set period of time, such as six months, one year, or five years. Your step-up CD will gradually increase its interest rate over time, usually on a fixed schedule....

When you make an ACH debit payment from your bank account, the payee will initiate an electronic withdrawal directly from your account. This transaction does not involve paper checks or debit cards—the only information the payee needs is your bank account and routing number. How ACH Debit Works To pay with ACH, you’ll need to authorize your biller, such as your electric company, to pull funds from your account. This typically happens after you provide your bank account and routing numbers for your checking account and give your authorization by signing an agreement with your biller....

The term “actual loss” is also used to distinguish the portion of the expense that is directly resulting from a claim. That amount will be covered rather than the total expenses or value claimed during the loss. For example, suppose a house floods due to a burst pipe. Expenses may include an emergency plumber, repairs to any damaged property, and in extreme events possibly even outside living accommodations while the home is not habitable....

Understanding expiration dates for derivatives, how they work, and how they affect the price of that derivative is essential for anyone trading derivatives. Definition and Example of An Expiration Date The expiration date of a derivative contract is the last date on which the holder of that contract can exercise it. For example, if you buy a call option, you have the right to buy a specific stock at a specified price....

Perhaps the most common income exclusion rule is the foreign earned income exclusion. This allows a U.S. citizen to avoid paying taxes on foreign earned income if they meet certain requirements, such as being a resident of another country for an entire tax year. The general welfare exclusion, on the other hand, might be used to allow welfare recipients or those receiving other government assistance such as disaster relief payments to avoid having to pay taxes on these amounts....

For example, suppose a client approaches a wealth management firm with $500,000. The client intends to use the money later that year and wants it kept safe until then. The client is laying out a mandate: to preserve the capital rather than risk losing it in order to grow. This mandate is known as “capital preservation.” When they are used, mandates direct those in control of these investments and help guide them to make the best choice....

On-us items may have quicker processing times than off-us items because the bank or credit union performs both sides of the transaction—the drawing and the depositing. The financial institution doesn’t have to go through an interbank system (also called an “off-us” transaction). Alternate name: On-us transaction, on-us check, in-house on-us payment For example, imagine that two sisters, Sarah and Hillary, both use the same financial institution. When Sarah writes Hillary a check and Hillary deposits it into her account, that institution completes the transaction as an on-us item....

With an unsubsidized loan, you are also responsible for paying all of the interest from the time you first receive the money until the balance is completely paid off. Any unpaid interest will be added to your total balance, which will increase the amount of ongoing interest you must pay. How Unsubsidized Loans Work An unsubsidized loan gets its name from the premise that the interest on the loan is not subsidized and that borrowers will pay interest on the loan from the day it’s funded....

The ChexSystems agency is affiliated with Fidelity National Information Services, which provides banking software and other technological support for financial institutions. Services provided by ChexSystems fall under the regulation of the Fair Credit Reporting Act (FCRA). When you apply for a new checking account, banks and credit unions reference your ChexSystems report. If you’re having trouble opening a checking account, it could be because of negative information on your report....

Because you can’t always deduct the entire cost of an asset in the year you buy it, you may need to depreciate some property and deduct a portion of the cost over several years. The property must have an anticipated usable lifespan of more than one year. This rules out purchases such as inventory. It also rules out any asset that might be expected to remain serviceable forever. Its usable life must be determinable....