Unit investment trust (UIT): An investment company that invests in a professionally selected portfolio of bonds and/or stocks. Unlike a mutual fund, the portfolio's investments are fixed over the life of the trust, are not managed, and have a stated or known maturity. Units of the trust's investment portfolio are sold to investors through financial consultants. Also called a "defined portfolio."

Universal life: A type of insurance that combines the characteristics of term life insurance and a tax-deferred savings plan. The insured can pay premiums at any time, subject to certain minimums and maximums, and reduce or increase the amount of the death benefit more easily than under a traditional whole life policy.