Financial Glossary


Temporary Life Insurance
Temporary insurance coverage is available at time of application for a life insurance policy if certain conditions are met. Normally, temporary coverage relates to free coverage while the insurance company that is underwriting the risk, goes through the process of deciding whether or not they will grant a contract of coverage. The qualifications for temporary coverage vary from insurance company to insurance company but generally applicants will qualify if they are between the ages of 18 and 65, have no knowledge or suspicions of ill health, have not been absent from work for more than 7 days within the prior 6 months because of sickness or injury and total coverage applied for from all sources does not exceed $500,000.
Tenants In Common
A form of joint property ownership in which the owners may have unequal shares and which does not involve a right of survivorship.
The length of time the mortgage agreement exists. At the expiry of the term the contract may generally be renewed for a further term and the rate renegotiated.
Term Insurance
Life insurance payable to a beneficiary only when an insured dies within a specified period.
Testamentary Trust
A trust created through the will of its creator.
Third Party
The claimant under a liability policy. So called because the person making the claim is not one of the two parties, insured and insurer, to the insurance contract.
Toronto Stock Exchange (TSX)
A company incorporated by an act of the Province of Ontario in 1918; trading until late 1999 included 2000 equity securities, equity and non-equity options, futures contracts, silver options, bond options, warrants on Canada bonds, currency and treasury bill futures; under a restructuring agreement between Canada's exchanges, the TSX became the senior equity exchange when junior issues moved to the Western Canadian Venture Exchange and derivatives moved to the Montreal Exchange; in 2001, the TSX acquired CDNX, thereby consolidating the trades for both junior and senior equities in Canada.
Total Debt Service Ratio (TDSR)
This is the total cost of housing payments plus all other instalment payments divided by the family's total gross income. Generally this ratio should not exceed 42%.
Total Disability
An illness or injury that prevents an insured person from continuously performing every duty pertaining to his/ her occupation or engaging in any other type of work.
Trade Date
The date on which a trade / bargain is executed.
The process of buying and selling securities; can be conducted for a firm's account or for its customers; either conducted on an exchange or over the counter.
Any arrangement under which the accumulated benefit credits of a terminating participant, or their actuarial value, are transmitted from one plan to another, or to a central agency.
The real-time public dissemination of trade and quote information, traditionally consisting of price reports (last trade and volume with the best bid and offer price and size).
Travel Accident Policy
A limited contract covering only accidents while an insured person is traveling, usually on a commercial carrier.
Treasury Bills (T-bills)
A short-term security with a maturity of one year or less issued at a discount from face value.
A legal instrument allowing one party to control property for the benefit of another.
Turnover Rate
The rate at which employees terminate covered service other than by death or retirement. Expected future turnover can be taken into account in translating contributions into benefits.
The practice of inducing by misrepresentation, or inaccurate or incomplete comparison, a policyholder in one company to lapse, forfeit or surrender his insurance for the purpose of taking out a policy in another company.