Bodily Injury Liability

Insurance coverage that pays costs related to bodily injury or death for which you become legally responsible.  

Bond

A form of debt issued by government entities and corporations.

Budget

A plan showing targets for income and expenses over a fixed time period, such as a month or a year.

Certificate of Deposit

A savings certificate, usually issued by a commercial bank, that has a stated maturity and interest rate.  Certificates of deposit, often called CDs, are insured by the Federal Deposit Insurance Corporation up to $250,000 per account holder per bank.  The $250,000 limit includes all of your insured accounts at the bank, such as savings and checking accounts.

Co-Pay

The fixed amount that you pay for each provider visit or prescription. The fixed amount can vary depending on the type of provider or prescription, but does not vary based on the services provided at a visit. HMO plans are usually the only type of plans that have co-pays on doctor visits, while many plans use co-pays for prescriptions.

Coinsurance

The portion of each insurance claim, expressed as a percentage, you pay after you have reached the deductible and before you have reached your maximum out-of-pocket payment amount.  Coinsurance is very common in health insurance but is not used with auto or homeowners insurance.  Sometimes, people (like me, but not in this post) incorrectly refer to coinsurance as co-pays.

Collateral

A physical asset pledged by a borrower as security to a lender for a loan.  If the borrower defaults on the loan, the lender can take possession of the collateral.

Collision

Insurance coverage that reimburses you for damage to your car when it impacts another vehicle or object or rolls over.  

Common Stock

An ownership share in a company that allows the owner to vote on Board members and other matters. Common stock has the lowest priority in the event of bankruptcy.

Compound Interest

The amount of interest paid is calculated as the interest rate times the sum of the principal and any interest earned or owed.