Glossary: E

Earned income – For tax purposes, earned income is generally the money made by an individual from employment. It also includes some taxable benefits. Earned income is used as the basis for calculating RRSP maximum contribution limits.

Earnings statement – A financial statement showing the income and expenses of a business over a period of time. Also known as an income statement or profit and loss statement.

Effective date – the date requested by an employer for insurance coverage to begin.

Equity – The net worth of a company. This represents the ownership interest of the shareholders (common and preferred) of a company. For this reason, shares are often known as equities.

Equity fund – A mutual fund whose portfolio consists primarily of common stocks.

Exclusions – expenses which are not covered under an insurance plan. These are listed in the Certificate Booklet.

Explanation of Benefits (EOB) – a carrier’s written response to a claim for benefits. Sometimes accompanied by a benefits check.