Glossary

The process of paying off one debt (a loan or credit card) with a new loan, in order to obtain a lower interest or more accommodating repayment terms.

Typical of a credit card or line of credit, revolving debt encompasses all credit products where you can borrow (e.g., spend or draw) up to a certain amount, which is known as your credit limit. Any payment you can make on a revolving debt account replenishes your credit limit. Revolving debt is the opposite of a installment loan, in which you receive one lump sum and pay it back in installments.

A provision or addition to a life insurance policy that expands the benefits available to the policyholder and beneficiary, which can be purchased separately at an additional cost (e.g., guaranteed insurability).