insurance.jonlynchfinancial.com/glossary/#term-myga-style URLs to point someone at a specific definition.
A
ACA (Affordable Care Act) #
The 2010 federal law that created the health insurance Marketplace, mandated coverage of pre-existing conditions, and introduced premium tax credits. ACA Marketplace plans are sold during Open Enrollment (Nov 1 – Jan 15) or with a Special Enrollment Period.
Annuity #
A contract with an insurance company where you give them money (lump sum or periodic) in exchange for future payments — for a fixed period or lifetime. Five main types: SPIA, MYGA, Fixed Indexed, Variable, and Deferred Income (DIA). See how annuities work.
B
Beneficiary #
The person (or entity) who receives the proceeds of a life insurance policy or annuity when the insured dies. Primary beneficiaries are paid first; contingent beneficiaries are paid only if no primary beneficiary survives.
C
Cash Value #
The savings component built up inside a permanent life insurance policy (whole life, IUL, VUL). Grows tax-deferred. Can be borrowed against or surrendered. Term insurance has no cash value.
Coinsurance #
The percentage of medical costs you pay after meeting your deductible. A plan with 20% coinsurance means after deductible, you pay 20% of covered services until you hit the out-of-pocket maximum.
Copay #
A fixed dollar amount you pay for a covered medical service (e.g., $30 to see your primary care doctor, $50 to see a specialist). Typically applies regardless of whether you've met your deductible.
Cost-Sharing Reduction (CSR) #
An ACA subsidy that lowers deductibles, copays, and out-of-pocket maximums on Silver-tier plans for households below 250% of the federal poverty level. Separate from premium tax credits.
D
Deductible #
The amount you pay out of pocket for medical services before your health insurance starts paying. After meeting the deductible, you typically pay coinsurance or copays until reaching the out-of-pocket maximum.
DIME Method #
A framework for calculating life insurance need: Debts + Income (years to replace) + Mortgage + Education. Subtract existing assets. Used by financial planners as an honest starting point that beats the simpler 10x-income rule. See the full DIME article or try the calculator.
F
Fixed Indexed Annuity (FIA) #
An annuity whose interest credits are tied to a market index (S&P 500, etc.) with a cap on the upside and a floor (typically 0%) on the downside. Cannot lose principal to market drops; typically lags the underlying index by 3–5% annually due to caps.
Federal Poverty Level (FPL) #
Annual income threshold updated by HHS, used to determine ACA premium tax credit and Medicaid eligibility. ACA subsidies typically apply to households between 100% and 400% of FPL, with premium contributions capped at 8.5% of income above 400% through 2027.
G
Grace Period #
The period after a missed life insurance premium payment during which the policy stays in force. Typically 30–31 days. After grace period, the policy lapses (though some carriers offer reinstatement with health re-evaluation).
Guaranty Association #
State-mandated organization that pays insurance benefits up to defined limits if a carrier becomes insolvent. Florida's life-and-health guaranty association covers up to $300,000 in life insurance death benefit and $250,000 in present value of annuity benefits per insured.
H
HIPAA #
Health Insurance Portability and Accountability Act of 1996. Protects individually identifiable health information held by 'covered entities' (health plans, providers, clearinghouses) and their business associates.
I
Indexed Universal Life (IUL) #
Permanent life insurance with cash value tied to a market index, with caps on upside and a floor on downside. Combines life insurance death benefit with tax-deferred growth potential. Usually wrong for income-replacement needs (term is cheaper); right for high earners maxing other tax-advantaged accounts. See term vs whole vs IUL.
M
Marketplace (Health Insurance Marketplace) #
The federal (HealthCare.gov) or state-run platform where individuals shop for ACA-compliant health insurance plans. Florida uses the federal Marketplace. Open Enrollment runs Nov 1 – Jan 15 each year.
Market Value Adjustment (MVA) #
An adjustment applied to certain annuity surrender values when interest rates have changed since purchase. Can increase or decrease the surrender amount depending on rate movement. Common on MYGA contracts.
MYGA (Multi-Year Guaranteed Annuity) #
An annuity with a guaranteed fixed interest rate for a defined period (typically 3–10 years). Functionally similar to a CD but issued by an insurance company, with tax-deferred growth and typically higher rates than CDs.
N
Network #
The set of doctors, hospitals, and other providers contracted with a health insurance plan. In-network providers cost you less; out-of-network providers cost more (or aren't covered at all in HMO plans).
O
Out-of-Pocket Maximum #
The most you'll pay for covered medical services in a plan year. Includes deductibles, copays, and coinsurance. Once you hit the OOP max, the plan pays 100% of covered services for the rest of the year. Premiums don't count toward OOP max.
Open Enrollment #
The annual period when you can enroll in or change ACA Marketplace health insurance plans without needing a Special Enrollment Period. For 2027 coverage: November 1, 2026 through January 15, 2027. See Florida ACA enrollment guide.
P
Permanent Life Insurance #
Life insurance designed to last for the insured's entire life, with no expiration as long as premiums are paid. Includes whole life, universal life, indexed universal life (IUL), and variable universal life (VUL). All build cash value.
Premium Tax Credit (PTC) #
The ACA subsidy that reduces monthly health insurance premiums for households between 100% and 400% of the federal poverty level (and above 400% with the IRA-extended cap of 8.5% of income through 2027).
R
Rider #
An optional addition to an insurance policy that modifies the base coverage. Common life insurance riders: accelerated death benefit, waiver of premium, child term, accidental death. Each costs additional premium.
S
Special Enrollment Period (SEP) #
A 60-day window after a qualifying life event during which you can enroll in or change ACA Marketplace coverage outside of Open Enrollment. Qualifying events: loss of other coverage, marriage, divorce, new baby, move, income change, etc.
SPIA (Single Premium Immediate Annuity) #
An annuity purchased with a single lump-sum payment, with income payments beginning within 12 months. Simplest annuity type. Used to convert savings into a guaranteed lifetime income stream.
Surrender Charge #
A fee charged for withdrawing more than the contractually permitted amount from an annuity or permanent life policy during the surrender period. Typically declines over years (e.g., 10% year 1, 9% year 2, etc.) until reaching zero.
T
Term Life Insurance #
Life insurance covering a fixed period (typically 10, 15, 20, or 30 years) with no cash value. Cheapest form of life insurance. Right for income replacement, mortgage protection, child-rearing years.
U
Underwriting #
The carrier's evaluation of your health, lifestyle, occupation, and financial information to determine whether to offer coverage and at what rate class. Different carriers underwrite differently — that's why an independent agent shops your case to multiple carriers.
W
Whole Life Insurance #
Permanent life insurance with a fixed premium for life, guaranteed death benefit, and cash value that grows at a guaranteed rate (typically 2–4% annually) plus dividends if the policy is participating.