Learn 5 Actuarial Words

"Join us as we delve into the lexicon of actuarial science, unraveling the meanings and significance behind these terms, and discover the pivotal role they play in shaping the financial landscape we navigate every day."

1. Acute Illnesses - Any illness characterized by signs and symptoms of rapid onset and short duration. It may be severe and impair normal functioning.

2. Annuity - A financial contract between an insurance company and the policyholder (purchaser) that provides for a series of payments at regular intervals to be received for a number of years or over a lifetime. Earnings of annuities grow tax-free until payouts begin, which is usually around 65. Annuities are hybrids of insurance and investments. Examples include variable, fixed, deferred, and market value adjusted.

3. Call Option - An agreement that gives an investor the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within a specific time period.

4. Casualty Insurance - A broad category of non-life, non-health coverage against loss of property, damage or other liabilities, including such things as vehicle insurance, liability insurance, theft insurance, machinery, and crime.

5. Catastrophe - Catastrophes are infrequent events that cause severe loss, injury or property damange to a large population of exposures. While the term is most often associated with natuaral events (e.g. earthquakes, floods or hurricanes), it can also be used when there is concentrated or widespread damage from man-made disasters (e.g. fires, explosion, pollution, terrorism or nuclear fallout).