Plain-English definitions for the terms you'll encounter on your financial journey.
A summary of the history of a property's ownership, including all recorded legal documents and claims.
A claim payment based on the replacement cost of an item minus depreciation, reflecting its current market value at the time of loss.
A professional evaluation of the value of an item or the cost of repairs to determine the amount an insurance company should pay for a claim.
A formal request by a policyholder to an insurance company for payment or coverage based on the terms of the policy.
A person who evaluates an insurance claim to determine the insurer's liability and the amount of money to be paid to the claimant.
The amount of money an insured person must pay out-of-pocket before their insurance company begins paying for a claim.
Increases to monthly Social Security benefits granted for each month a person delays claiming benefits past their full retirement age.
A formal refusal by a beneficiary to accept an inheritance or gift, allowing it to pass to the next person in line.
A statutory right that allows a surviving spouse to claim a specific portion of their deceased spouse's estate, even if they were left out.
A claim, lien, or liability attached to a property that may lessen its value or restrict its use. Common examples include easements for utilities or outstanding property tax liens.
The transfer of unclaimed estate assets to the state when no heirs are found.
The tax form used to calculate and claim education-related tax benefits for students in higher education.
A provision in life insurance policies that prevents the insurer from canceling the policy or denying a claim due to a mistake in the application after a set period.
A legal claim or right against a property that allows a creditor to seize it if the owner fails to fulfill a debt or contract.
A measure of an insurer's performance calculated by dividing the claims paid by the total premiums collected.
The person or organization that owns an insurance policy and has the right to make changes or file claims.
A legal claim or right against a property by a creditor as security for a debt.
A legal instrument used to transfer interest in real property without making any guarantees about the title's validity.
A claim payment amount that covers the cost to replace a damaged item with a new one of similar quality without subtracting for wear and tear.
A legal claim by the government against a taxpayer's property when they fail to pay a tax debt.
An examination of public records to confirm a property's legal ownership and check for any liens or claims.
A trade where an investor sells a security at a loss and then buys a substantially identical one shortly before or after, typically done to claim a tax deduction while maintaining the same investment position.
An exemption claimed by an employee on tax paperwork, such as Form W-4, that directs an employer on the amount of tax to subtract from a paycheck. The more allowances or adjustments claimed, the less income tax is withheld throughout the year.