What is an Income Annuity? An income annuity, also known as an immediate annuity, is an annuity that is contractually designed to start paying income as soon as the policy is started. Income annuities can be funded as soon as the policy begins. In addition, they may be annuitized immediately, giving the individual extra freedom…
What Does In-House Mean? In-house, or insourcing, is a term used in business to describe the utilization of internal sources rather than outsourcing for activities such as hiring and operations. In-House vs. Outsourcing The performance of operational duties and activities is an increasingly important aspect within a business that requires educated cost allocation to become…
What is Per Capita Income (PCI)? Per capita income (PCI) or “average income” is the measurement of average income per person in a specific country, city, or region within a definitive time period. Used primarily in economics, PCI utilizes average income to calculate and present the standard of living and quality of life for a…
What is an Income Fund? An income fund is an investment vehicle similar to a mutual fund or an exchange-traded fund (ETF) that emphasizes current income compared to capital gain or appreciation. The term current income refers to income that is received on a fixed basis compared to waiting for some future date in order to…
What is Incidence Rate? The incidence rate or incidence measures the frequency of a specific event over a defined period of time. In business, determining an incidence rate can be done through gathering samples, conducting surveys, and testing products. Incidence is generally expressed as the number of cases per person per year of examination. For…
What is an Index Option? An index option is a financial derivative contract whose value is derived from an underlying stock market index. It gives the holder the right (but not the obligation) to buy or sell the underlying index at a specified strike price. Index options comprise call and put options that confer the…
What is Employer’s Liability Insurance? Employer’s liability insurance is essentially an insurance policy for workers covering work-related injuries, illnesses, and deaths. As an employer, one is legally responsible for the safety of workers during work and at the workplace. It is rare to find a place of employment that is completely exempt from workplace injury…
What is Employment Insurance (EI)? Employment Insurance (EI) is relief provided by the Government of Canada to those who become unemployed or are unable to work due to certain circumstances such as illness, pregnancy, caring for a family member, etc. It acts as temporary financial support and also includes support for unemployed individuals to look…
What is the Implied Rate? The implied rate is an interest rate that expresses the difference between the forward/future rate and the spot rate. It serves as a useful tool for comparing returns across different assets and can be applied to any scenario that involves a forward or futures contract. Understanding Implied Rates Forward/Futures Contracts…
What is Import Duty? Import duty is the tax imposed on goods that are imported from other countries. Duties are determined by a number of factors, including the value, origin, and type of the goods. They are established and become a source of revenue for the government, as well as to protect domestic producers from…
