Glossary: P

Paid-up Insurance – Insurance that will remain in force with no need to pay additional premiums.

Participating Policy – A life insurance policy that is eligible for the payment of dividends by the insurer (see also “Dividend”.)

Pension adjustment – An amount that reduces the allowable contribution limit to an RRSP based on the benefits earned from the employee’s pension plan or deferred profit sharing plan.

Pension plan – A formal arrangement through which the employer, and in most cases the employee, contribute to a fund to provide the employee with a lifetime income after retirement.

Permanent life insurance – Life insurance coverage for which the policyholder pays an annual premium, generally for the life of the insured. This type of policy features a savings component, known as the cash surrender value.

Plan administration – overseeing the details and routine activities of installing and running a health plan, such as answering questions, enrolling new individuals for coverage, billing and collecting premiums, etc.

Policyowner – The person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation.

Portfolio – All the securities which an investment company or an individual investor owns.

Pre-certification – an insurance company requirement that an insured obtain pre-approval before being admitted to a hospital or receiving certain kinds of treatment.

Pre-existing condition – an illness, injury or condition for which the insured individual received medical advice, treatment, services or supplies; had diagnostic tests done or recommended; had medicines prescribed or recommended; or had symptoms of typically within 12 months (time periods may vary depending on state laws) prior to the effective date of insurance coverage.

Preferred share – An ownership security, senior to the common stock of a corporation, with preferred claim on assets in case of liquidation and a specified annual dividend.

Premium – The amount by which a bond’s selling price exceeds its face value. Also, the amounts paid to keep an insurance policy in force.

Premiums (Group Insurance) – payments to an insurance company providing coverage.

Present value – The current worth of an amount to be received in the future. In the case of an annuity, present value is the current worth of a series of equal payments to be made in the future.

Principal – The person for whom a broker executes an order, or a dealer buying or selling for his or her own account. Also, an individual’s capital or the face amount of a bond.

Prospectus – The document by which a corporation or other legal entity offers a new issue of securities to the public.

Provider – any person or entity providing health care services, including hospitals, physicians, home health agencies and nursing homes.