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Accelerated
death benefit riders
Supplementary term life insurance policy benefit riders that allow a policyowner-insured
to receive a specified portion of the policy's death benefit before death if certain
conditions are met.
Applicant
The person or business that applies for an insurance policy.
Attained age conversion
The conversion of a term life insurance policy to a permanent life insurance policy
at a premium rate that is based on the insured's age at the time the coverage
is converted.
Beneficiary
The person or party the owner of an insurance policy names to receive the policy
benefit.
Binding premium receipt
A type of premium receipt that provides a potential insured with temporary insurance
coverage from the time the applicant receives the receipt until the insurer declines
the application or issues and delivers a policy.
Buy-sell agreement
An agreement in which one party agrees to purchase a second party's financial
interest in a business following the second party's death and the second party
agrees to direct their estate to sell that interest to the purchasing party.
Claim
A request for payment under the terms of an insurance policy.
Conditional premium receipt
A type of premium receipt that specifies certain conditions that must be met before
temporary life insurance coverage will become effective.
Contingent beneficiary
The party named to receive the proceeds of a life insurance policy if the primary
beneficiary should die before the insured dies.
Continuous-premium whole life policy
An insurance policy for which premiums are payable throughout the term or life
of the policy. Also known as a straight life insurance policy.
Conversion privilege
A term life insurance policy provision that allows the policyowner to change (convert)
the policy to a permanent plan of insurance without providing evidence of insurability
of the insured.
Convertible term insurance
policy
A term life insurance policy that gives the policy owner the right to convert
the policy to a permanent plan of insurance.
Decreasing
term life insurance policy
A term life insurance policy that provides a death benefit that decreases over
the term of coverage.
Electronic funds transfer (EFT) method
An automatic premium payment technique whereby the policyowner authorizes their
bank to withdraw funds from their account to pay each renewal premium.
Evidence of insurability
Proof that a person is an insurable risk.
Face amount
The amount payable under a life insurance policy if the insured person dies while
the policy is in force. Also known as face value.
Grace period
A specified length of time within which a renewal premium may be paid.
Initial premium
The first premium that is paid for an insurance policy and that is part of the
consideration the policyowner gives for the policy.
Insured
The person whose life or health is insured under an insurance policy.
Insured age
Premiums can be charged by: a) Age nearest birthday and b) Actual Age .
Irrevocable beneficiary
A life insurance policy beneficiary whose designation as beneficiary may not be
cancelled by the policyowner unless the beneficiary consents.
Key person life insurance
Insurance that a business purchases on the life of a key person.
Level term life insurance policy
A term life insurance policy that provides a death benefit that remains the same
over the term of coverage.
Life insurance policy
A policy under which the insurance company promises to pay a benefit upon the
death of the person who is insured.
Modified- premium whole life policy
An insurance policy for which the policyowner pays a lower than normal premium
for a specified initial period and then pays a higher premium than he would for
a similar whole life policy.
Original age conversion
The conversion of a term life insurance policy to a permanent life insurance policy
at a premium rate that is based on the insured's age when the policy was purchased.
Policy term
The specified period of coverage provided by a term insurance policy.
Policyowner
The person or business that owns an insurance policy.
Preauthorized check (PAC)
system
An automatic premium payment technique whereby the policyowner authorizes the
insurer to generate a check against the policyowner's bank account to pay each
renewal premium.
Premium
A specified amount of money that the insurer receives in exchange for its promise
to provide a policy benefit when a specific loss occurs.
Premium payment mode
The frequency at which renewal premiums are payable.
Primary beneficiary
The party designated to receive the proceeds of a life insurance policy following
the death of the insured.
Renewable term insurance policy
A term life insurance policy that allows the policyowner to renew the policy at
the end of the policy term.
Renewal provision
A term life insurance policy provision that allows the policyowner to renew the
insurance coverage at the end of the specified term without submitting evidence
of insurability.
Revocable beneficiary
A life insurance policy beneficiary whose designation as beneficiary may be cancelled
by the policyowner at any time prior to the insured's death.
Suicide exclusion provision
A life insurance policy provision that governs the payment of policy proceeds
if the insured dies as a result of suicide.
Surrender charge
Expense charges sometimes imposed when a policyowner surrenders a universal life
policy.
Term life insurance
A type of life insurance that provides a death benefit if the insured dies during
a specified period.
Terminal illness (TI) benefit
An accelerated death benefit provided by some individual life insurance policies
under which the insurer pays a portion of the policy's death benefit to a policyowner-insured
who suffers from a terminal illness and has a life expectancy of 12 months or
less.
Underwriting
The process of identifying and classifying the degree of risk represented by a
proposed insured.
Universal life insurance
A form of permanent life insurance that is characterized by its flexible premiums,
flexible face amounts, and unbundled pricing factors.
Waiver of premium for disability (WP) benefit
A supplementary life insurance policy benefit under which the insurer gives up
its right to collect renewal premiums that become due while the insured is totally
disabled.
Whole life insurance
Life insurance that provides lifetime insurance coverage at a level premium rate
that does not increase as the insured ages.
Yearly renewable
term (YRT) insurance
Term life insurance that gives the policyowner the right to renew the coverage
each year, over a specified period of time.
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