Preparedness Glossary

An employer-sponsored retirement savings plan that allows employees to contribute pre-tax dollars, often with employer matching contributions.

The strategy of dividing investments among different asset categories, such as stocks, bonds, and cash, to optimize risk and return.

A person or entity designated to receive benefits from a will, trust, insurance policy, or retirement account.

A portable emergency kit containing essential supplies needed to survive for 72 hours when evacuating from a disaster.

Interest calculated on the initial principal and accumulated interest from previous periods, leading to exponential growth over time.

The amount you must pay out-of-pocket before your insurance coverage begins to pay for covered expenses.

Money set aside to cover unexpected expenses or financial emergencies, typically 3-6 months of living expenses.

The process of arranging for the management and disposal of a person's estate during their life and after death.

Federal Emergency Management Agency - the U.S. government agency responsible for coordinating disaster response and recovery efforts.

A pre-packed bag of essential items ready for immediate evacuation during an emergency situation.

A tax-advantaged savings account for individuals with high-deductible health plans to pay for qualified medical expenses.

Individual Retirement Account - a personal retirement savings account with tax advantages for retirement savings.

A contract that provides financial protection to beneficiaries upon the death of the insured person.

A legal document that specifies medical treatment preferences if a person becomes unable to communicate their wishes.

An investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

National Oceanic and Atmospheric Administration - provides weather forecasts, warnings, and emergency alerts.

A legal document that gives someone the authority to act on another person's behalf in legal or financial matters.

The state of being ready and equipped to handle emergencies, disasters, or unexpected situations effectively.

The process of identifying, analyzing, and evaluating potential hazards and their likelihood of occurrence.

A retirement account funded with after-tax dollars, allowing tax-free withdrawals in retirement.

The ability to depend on oneself for basic needs and to handle challenges without external assistance.

An emergency response that requires people to stay where they are and take immediate shelter rather than evacuate.

Life insurance that provides coverage for a specific period (term) and pays a benefit only if death occurs during that term.

A legal arrangement where one party holds property or assets for the benefit of another party.

Permanent life insurance that provides coverage for the insured's entire life and includes a cash value component.