Insurance Terms

Earned Income

Income generated by providing goods or services and received in the form of wages and salaries.
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Earned Income Limit

An annually adjusted limit that applies to Social Security recipients who continue to work while receiving benefits. This applies only to individuals under age 70, and limits earned income to an annually adjusted level, above which Social Security benefits are reduced. Also known as the retirement earnings test.
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Earnings Record

Record compiled by the Social Security Administration that shows an individual's actual lifetime earnings as reported to the SSA by an employer, or for self-employed individuals, by the Internal Revenue Service (IRS). Only earnings that are less than the maximum earnings limit for that year are credited to the earnings record and will be used to compute Social Security benefits.
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Elimination period

Period of time (beginning with the first day of illness or injury) during which no benefits are payable under a disability insurance policy. Benefits are paid only for costs incurred after the end of the elimination period.
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Endorsement

A written agreement attached to an insurance policy to add or subtract coverage. Once attached, the endorsement takes precedence over the original terms of the policy.
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Enrolled Agent

An individual who has demonstrated technical competence in the field of taxation and can represent taxpayers before administrative levels of the Internal Revenue Service.
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Equitable Division State

The philosophy followed by most states, providing that property must be divided fairly, rather than equally, when determining how divorcing couples divide property. This applies to property acquired during a marriage as well as separate property and property brought to a marriage.
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Equity

An ownership interest such as that held by shareholders in a corporation. Equity also represents the difference between the market value of real estate and the outstanding balance on the loan(s) secured by that property.
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Estate

All assets a person owns at the time of death, including securities, real estate, business interests, physical property, and cash, less outstanding liabilities. The estate is distributed to heirs according to the terms of the person's will or, if there is no will, by court ruling.
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Estate Freeze

Techniques or methods used to control the future appreciation of assets for the purpose of reducing estate taxes.
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Estate Planning

The process of developing and implementing a master plan that facilitates the distribution of your property after your death according to your goals and objectives.
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Estate Tax

A tax imposed by the federal government and some state governments on the transfer of assets to heirs.
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Exclusions

Items that are specifically denied coverage under the terms of an insurance policy. For example, most property/casualty contracts exclude coverage for normal wear and tear. You can often purchase additional coverage to override one or more exclusions.
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Execution

The signing, sealing, and delivery of a contract or agreement making it valid. Also, a broker who buys or sells shares of stock upon a client's request is said to have executed an order.
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Executor/Executrix

An individual or professional organization, such as a bank's trust department, named in a will to administer an estate upon the death of the owner.
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Exempt

Assets that are not considered for bankruptcy proceedings. Exempt is also used to refer to assets not considered in the determination of eligibility for Medicaid.
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Extended Coverage

An endorsement added to an insurance policy, or a clause included in the policy, to provide additional coverage for risks other than those covered under the basic policy provisions.
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