Definition (1):
The triggering event means the event that prompts an individual to become an entrepreneur. For example, an individual may lose her job and decide that the time is right to start her own business. By this, people become entrepreneurs and pursue their own ideas to realize financial rewards.
Definition (2):
“A triggering event is a tangible or intangible barrier or occurrence which, once breached or met, causes another event to occur.”
These events include retirement, job loss, or death and are general or common for several kinds of contracts. These events help to ensure, or prevent, that if any catastrophic change occurs, an original contract’s terms can also change.
Life insurance policies can consist of an event of this type depending on the insured age. Many employers also need employees to complete a qualifying period as a triggering event for becoming eligible for certain company benefits. In the spheres of investment, stops refer to these events which the investor can initiate for limiting their downside risk.
Use of the term in Sentences:
- The retirement has worked as a triggering event for Mr. Anderson to become a successful entrepreneur.