Debt Free Article

Debt Terms Glossary

Letters U-Z

Unit trust

This is a collection (in the world of debt) where securities are involved. Typically bonds are packaged by brokers and sold to investors. This is a good debt free investment. Unit trusts provide a steady, understood yield here that investors take advantage of in principal as these bonds mature with this trust.

Universal life insurance

The type of life insurance that debt free individuals and non dent free individuals can compare to whole life policies where you are allowed to figure out just how much of the premium to use for insurance coverage and how much for investing. Payments here can also be varied in form. Also, universal plans provide yields on the cash value part that could even be higher than regular whole life coverage does.

Variable life insurance

This type of life insurance lets out debt free advocates out the invest party of their cash value in stocks and other securities, through mutual funds managed by that insurance company they have the policy under. With this type of deal, both death benefit and the cash value vary according to the actual investments you deal in with the company. So, there is no guaranteed rate, but it is a long term investment plan.

Vesting

This is the process through which our debt free consumers are eligible to receive benefits in a company pension plan. Many companies either cliff vesting opportunities for workers or they 100% vest their employees after 3 years of employment. In the between time there are no benefits in vesting (during the waiting period). Some companies do gradual vesting at increments of about 20% per session.

Whole life insurance

Not something many of our debt troubled customers can afford, but worthy nonetheless. This insurance is also many times known as cash value insurance. In the most basic form of it, you are charged the same premium for as long as you hold the policy – so in the long run it is good. Part of your premium in this type of insurance pays for the insurance, and another part of the premium pays your insurance agent’s fees and commissions earned. The rest goes to you and in the long term this is a good debt free way to be insured.

Yield

In simple form, this is the yearly cash return you earn by any of your investments such as stocks, bonds, mutual funds, real estate and such. A stock yield is its yearly dividend calculated as a percentage of its share value. So, if our debt free readers should own a stock valued at fifty dollars for each share and they are paid a yearly dividend of two dollars per share, they are yielding 4%. Bond yields can take many forms too. Coupon yield is the interest rate based on the face value of the bond. Current yield is the actual interest you based on the actual purchase price of the bond. Additionally yield to maturity is the rate that takes into consideration the investor’s current yield and the actual difference between purchase price and the face value. Here the difference that is left over may be amortized over the rest of that bonds life span.

There you have it that is the complete debt free glossary we have compiled for our debt consolidation, credit card debt individuals and other debt related strugglers that will hopefully enlighten a few debt free wannabes to get more education to you’re your debt recovery experiences. We hope you learn today.

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