I


Immediate annuity
A single premium annuity where the annuitant immediately begins to receive income payments under a payout option one payment period following the register date. For example, if income is payable monthly, the first payment will be one month after the register date.  


Income
  
Earnings on an investment.  In stocks, income comes in the form of dividends; in bonds or cash investments, as interest payments.


Income fund
  
A mutual fund that invests in income producing securities such as bonds, preferred stocks or high dividend yielding common stock.


Income stock
  
A stock that pays a relatively high dividend.  


Incontestability 
 
A certificate will not be contested after it has been in force for two years from its date of issue. After two years, the company loses the right to contest a claim.  


Incontestable clause
  
A provision preventing the insurer from challenging coverage after a stipulated period of time has passed, generally two years.


Individual retirement account (IRA)
  
A tax-sheltered retirement plan established by individuals in which interest earnings accumulate on a tax-deferred basis.  


Inflation
  
The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index.  


Inspection reports
  
Reports from various consumer reporting agencies. These consumer investigative reports cover credit information as well as information about a proposed insured's personal habits, lifestyle, reputation, health, occupation, etc.


Insurance amount (face amount)
  
The amount of money an insurance plan is issued for, before the addition of any rider amounts.  


Insured
  
The person upon whose life Modern Woodmen of America issues the certificate.  


Interest rate, current
  
The current rate of interest credited to life or annuity certificates. This is generally higher than the guaranteed rate and is based on current economic conditions.  


Interest rate, guaranteed
  
The minimum interest rate that can be credited to life or annuity certificates. This is generally lower than the current interest rate.


Interest rate, certificate loan
  
The interest rate charged on a certificate loan.  


Interest Rate Risk
  
A change in the price of a bond due to changes in the market level of interest rates.  Longer maturity bonds are subject to greater price changes than are shorter maturities when the market level of interest rates change.  


Interest sensitive whole life
  
Sometimes called current assumption whole life, these certificates have level premiums and a guaranteed minimum interest rate for account values. However, interest on account values is credited based on the insurer's current crediting rate.  


International fund
  
A mutual fund that invests in securities markets throughout the world.  If investments are chosen carefully, this type of fund may be profitable when some markets are rising and others are declining.


Intestate 
 
The situation when a person dies without a will.  


Investment
  
A vehicle for money that seeks to increase its value through growth (increases in price) or income (dividends and interest).  


IRA 
 
See: Individual Retirement Account  


IRA withdrawal
  
Under current tax law, a taxpayer may take funds out of an IRA without tax penalty beginning at age 59½. Conversely, the taxpayer must begin systematic withdrawals no later than age 70½. Starting at age 70½, the taxpayer must establish annual scheduled withdrawals so that the full accumulated value will be distributed within his or her expected lifetime (required minimum distribution).  

Under current IRS regulation, the taxpayer can postpone the first payment until April 1 of the year following age 70½.  


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