GLOSSARY

Coverage available on a life or disability policy, or an option benefit, which pays scheduled amounts in the event of an accidental death or dismemberment.

An amount used in the calculation of income tax liability. Gross income (salary, dividends and interest, capital gains, business income, etc.) less certain adjustments.

Debt securities (bonds) issued by various agencies of the U.S. government, such as the Federal National Mortgage Association, the Government National Mortgage Association and the Federal Home Loan Bank.

A non-nursing home facility which offers around-the-clock personal assistance that can't be provided effectively in your home.

A contract issued by a life insurance company designed to provide regular payments immediately, or at some point in the future. As a long-term savings vehicle, a deferred annuity may be fixed or variable. A fixed annuity provides for a guaranteed minimum amount of interest, whereas a variable annuity's earnings are based on the performance of the underlying subaccounts. Any earnings accumulate tax-deferred until withdrawn.

The process of placing a value on an asset.

A method of investing that distributes assets among different asset classes, such as stocks, bonds, and cash. The goal of asset allocation is to help manage the risk of the overall portfolio.

A housing facility which provides food, shelter and limited personal care along with the capacity to respond to unscheduled medical needs.

A short-term credit investment which is created by a non-financial firm and whose payment is guaranteed by a bank. Often used in importing and exporting and as a money market fund investment.

A reference point that is chosen for the purposes of comparing related values.

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

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.

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

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 is the increase in the value of your original investment.

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

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.

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

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

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.

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

A fund with an investing strategy that seeks the stock of out-of-favor companies which have good fundamentals, such as low debt or good potential earnings, in the belief that the stock will increase in value. Refer to the fund's prospectus for complete information on risks, fees and expenses.

A benefit that can be added to a disability policy that increases the monthly benefit annually during a claim.

The risk of default, in which a bond issuer may not make the complete payments. Any bond mutual fund may risk loss from credit risk.

Custodial care consists primarily of attention to personal needs, such as help in walking, bathing and eating.

A plan established by an employer to provide benefits to an employee at a later date, such as after retirement.

Health insurance under which benefits are payable in regular installments designed to replace some of the insured's income when he or she is totally disabled as defined in the policy.

Within a fund, diversification is owning securities from a wide variety of unrelated businesses or industries. It allows the investor to help reduce the risk associated with a single security. For example, if one security experiences a price decline, it may be that another security's price will rise, off-setting the decline in the first security. Diversification cannot eliminate the risk of investment losses. Refer to the fund's prospectus for complete information on risks, fees and expenses.

A system of investing in which an individual deposits or contributes money into the same investments or mutual fund on a regular basis; usually monthly. This strategy may help lower the average share price of the investment. Using dollar cost averaging does not assure a profit and does not protect against loss in a declining market. Also, using this investment method involves continuous investment in securities regardless of fluctuating price levels of securities. Therefore, an investor should consider his/her financial ability to continue purchasing through periods of low price levels.

EAFE(R) International is one of the most widely used benchmarks by international portfolio managers. This is an index created by Morgan Stanley Capital International to track the devlopment markets of Europe, Australia and the Far East. It is widely used as the target to beat for global investing. An index is unmanaged and you cannot invest directly in an index.

The policy deductible, or the amount of time (usually a number of days) the insured elects to wait before disability or long term care benefits are paid. Typically, the longer an individual can wait before receiving funds from the insurance company, the lower the price of the policy.

Ownership in property or securities. Generally refers to an asset's market value minus debts against it.

The term used to describe the completion of a transaction in which a stock is sold by a broker and purchased by a shareholder.

A mutual fund company which offers investors a choice of two or more mutual funds, each with different objectives or investment strategies.

The type of insurance which provides coverage for a group of people under one contract, called a master contract. The master contract is issued to the group policyholder and the insured group members are not parties to the group contract.

An optional disability income policy benefit that enables an insured to make increases to the policy on specified dates with evidence of financial insurability only required (no evidence of medical insurability is required).

A strategy used in conjunction with the buying and selling of futures. A money manager may purchase a security with the belief that the price will go up and that the shares may be sold at a profit.

Provides long term care for those with considerable assistance needs. Services include medical, nursing, personal care, social and assisted daily living assistance. Generally reserved for those who do not need acute care but require more attention than is provided in an assisted living facility. Skilled nursing home care is daily nursing care which can only be performed by or under the direct supervision of skilled medical personnel.

Stock dividends, bond interest and cash interest.

A measure of securities used for the purposes of comparing the movement of securities of similar companies. An index is unmnagaed and you cannot invest directly in an index.

A retirement savings plan for individuals. There are various types of IRAs, such as traditional and Roth.

What a borrower pays a lender for the use of money. This is the income you receive from a bond, note, certificate of deposit, or other form of IOU.

A type of mutual fund which invests primarily in foreign stocks. International investing involves special risks not found in domestic investing, including increased political, social and economic instability, differences in regulation of financial data and reporting and currency exchnage differences. Refer to the fund's prospectus for complete information on risks, fees and expenses.

An insurance policy that reimburses a business for financial loss during a key employee's disability until recovery or a suitable replacement can be found.

A large sized company or a mutual fund that invests in the stock of large, established companies.

An index used to generally gauge the performance of the U.S. bond market. An index is unmanaged and you cannot invest directly in an index.

A creditor's claim against property. For example, a mortgage is a lien against a house; if the mortgage is not paid on time, the house can be seized to satisfy the lien. Similarly, a bond is a lien against a company's assets; if interest and principal are not paid when due, the assets may be seized to pay the bondholders. As soon as a debt is paid, the lien is removed. Liens may be granted by courts to satisfy judgments.

A type of insurance which provides a sum of money when the person who is insured dies while the policy is in effect.

Cash or assets easily convertible into cash. Some examples: money-market fund shares, U.S. Treasury bills, bank deposits.

A period of time in which short-term volatility or risk of the market does not play a significant role. Long term can be considered a time period of ten years or more.

A single payment to a beneficiary covering the entire amount of an agreement. Participants in Individual Retirement Accounts, pension plans, profit sharing, and executive stock option plans generally can opt for a lump sum distribution if the taxes are not too burdensome when they become eligible.

An annual charge to maintain certain types of brokerage accounts.

Refers to the exchanges, traders and investors involved in the transfer of goods and services and securities, as in the stock market. The term also may refer to goods and services in general, the producers who produce them and/or the consumers who buy them.

Market timing involves trying to predict what the market will do and purchasing or selling stocks to benefit from the movements of the market. It has not been proven that anyone can time the market successfully for any length of time.

The date on which a debt is due for payment or a bond is repaid. The average weighted maturity of a bond portfolio is the portfolio's time to maturity, weighted by the dollar value of the bonds comprising the portfolio.

A medium sized company or a mutual fund that invests almost exclusively in medium sized companies. A company's size is usually determined by the dollar value of its assets and earnings.

Money market investments are short-term securities that carry little risk, such as banker's acceptances, commercial paper, repos, negotiable certificates of deposit and Treasury bills. Money market mutual funds invest in these types of short-term investments; as a result, the risk of losing any of the principle investment is lower. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money. A money market mutual fund is not insured or guaranteed by the FDIC.

A life insurance company owned by policyowners rather than stockholders.

The NASDAQ Composite Index is generally considered representative of high growth stocks. It is a market-weighted index where each company's stock value affects the index in proportion to its market value. An index is unmanaged and you cannot invest directly in an index.

The value of a mutual fund share. Determined by dividing the total value of the fund's assets by the number of outstanding shares. This value is calculated daily by the fund.

The New York Stock Exchange Composite Index is an average of the price changes of all the common stocks listed and traded on the New York Stock Exchange. It is expressed in index points relating the current index value to a base index value. (The base for the NYSE Composite Index was set at 50.00 on Dec. 31, 1965.) The NYSE Composite Index is the only major measure that reflects the whole NYSE market.

A mutual fund with no minimum investment required.

The category assigned to an insured by the insurance company based on the individual's job duties. The insured's category dictates the policy premium and contractual grouping.

Fund expenses which are incurred annually, including management fees.

A term defining the most liberal interpretation of total disability where only one test is applied to determine the insured's eligibility for total disability benefits: the ability to perform the duties of one's own occupation.

Built into some disability policies, available as a rider with others, this provision pays a portion of the total disability benefit to insureds unable to perform one or more of their occupational duties because of disability.

A fund set up by a corporation, labor union, governmental entity, or other organization to pay the pension benefits of retired workers.

The performance of an investment is the increase (or decrease) in its value over time. Past performance, however, is not a guaranteed indicator of future performance.

Portfolio turnover refers to the percentage of stocks or bonds that are bought and sold each year within the fund.

The shares offered by a company which pay a pre-stated dividend, issued before common stock dividends are issued. The benefits of owning preferred stock are realized if the company ever goes bankrupt. If this occurs, preferred stock shareholders receive their money first. Common stockholders may not receive any money, if none is remaining after paying preferred stockholders.

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

A measure of the current price of a stock compared to its book value (assets minus liabilities). Price-to-book ratios are one commonly used measure to determine whether stocks are "cheap" or "expensive."

A measure that compares the sales per share to the market price of a stock. This measure is used to identify the relative value of stocks within a common industry.

Something which is legally owned by an individual or entity.

A formal written offer to sell securities, which sets forth the plan for a proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision. Prospectuses also are issued by mutual funds, describing the history, background of managers, fund objectives, a financial statement and other essential data including the risks and fees associated with investing. The prospectus contains financial information and a description of the company's business history, officers, operations, pending litigation (if any) and plans (including the use of the proceeds from the issue). Offerings of limited partnerships also are accompanied by prospectuses. Real estate, oil and gas, equipment leasing and other types of limited partnerships are described in detail and pertinent financial information, the background of the general partners and supporting legal opinions also are given. A prospectus should be read carefully before investing.

Term used to describe situations where a disability occurs, the insured recovers for a short period of time, then experiences a recurrence of the same or a related disability. Insureds with recurrent disabilities do not have to wait until their elimination period is over before they receive benefits.

Built into some policies, available as an option with others, this benefit pays the insured a portion of the total disability benefit after a return to work based on the percentage of income lost due to the disability.

The ability of an investor to tolerate the risk of losing money for the potential to make money.

Statement of Additional Information, which can be requested in addition to the prospectus.

A type of mutual fund that invests in the stocks of companies representing a specific industry, such as technology, utilities or health care. Funds that concentrate investments in one industry may carry greater risk than more broadly diversified funds. Refer to the fund's prospectus for complete information on risks, fees and expenses.

The Securities and Exchange Commission a commission created by Congress to regulate the securities markets and to protect investors. The SEC does not guarantee an investor against the loss of money from an investment.

Usually one year or less, often used to refer to bonds or loans.

Refers to either small companies or mutual funds which hold the stock of small companies. Small-caps have higher volatility as well as higher potential for greater capital gains. The illiquidity of the small-cap market may adversely affect the value of these investments so that shares, when redeemed, may be worth more or less than their original cost. Many small-cap funds come under the heading of an aggressive growth mutual fund. Refer to the fund's prospectus for complete information on risks, fees and expenses.

The S&P BARRA Value is a capitalization-weighted index comprised of stocks of the S&P 500 with high book-to-price ratios relative to the S&P 500 as a whole. Each company of the S&P 500 is assigned to either the Value or Growth index so that the sum of the two indices reflects the total S&P 500.

The S&P Midcap 400 Index is a widely recognized, unmanaged index of 400 medium capitalization stocks.

Also referred to as a ticker symbol. It is the abbreviation that represents the name of a stock or a mutual fund. When looking at a ticker tape or newspaper for the current value of a stock or mutual fund share, you must know its alphabetical symbol.

Federal or state income tax is not paid on contributions or earnings until the money is withdrawn.

Life insurance under which the benefit is paid if the insured dies during a specified period of time. Benefits are not payable if the insured survives to the end of the term.

A commonly used benchmark to gauge the performance of money market, short-term securities. An index is unmanaged. You cannot invest directly in an index.

The unit value (accumulation unit or annuity unit) is a standard measurement for exchange. The "unit" is used to calculate the contract value on the variable portion of a variable annuity or life contract. For example, if you own 100 units of a given fund (or subaccount) and the unit value of each unit is $2.35, your account value for that fund would be $235. If the unit value increases to $3, the value of your account is $300. It is important to note that the number of units does not change; you still own 100 units. The account value equals the unit value x the number of units owned.

An IOU issued by the U.S. government. Treasury notes (and treasury bills) are considered to be generally low risk investments if held to maturity. Notes are issued from 2-10 year time periods.

Variable universal life provides a death benefit where the cash value varies with performance of an underlying portfolio of investments.

A policy provision that exempts insureds from making premium payments until they recover once they've been disabled for a specified number of days.

To redeem shares of a mutual fund or stock. In a mutual fund, partial or full redemptions may be made over the phone. Some funds may impose an extra redemption fee to discourage market timers from pulling their money immediately after investing. If this is a fund's policy, it will be stated in the prospectus.

The return of an investment expressed as a percentage of cost or market. These include the income or dividends received from a security or mutual fund.