The grouping of persons for the purpose of determining an underwriting or rating group into which a particular risk must be placed.
Cash Surrender Value
The accumulated, guaranteed cash value in a while life or endowment policy at any given point in time
Accumulation at Interset Option
A dividend or settlement option under which the policyholder allows his or her dividends or policy proceeds to accumulate interests with the company
Accidental Death Benefit (ADB)
A rider added to a life policy that will pay double the face amount if the insured dies as a results of an accident, generally within 90 days of the accident. Also known as "multiple indemnity"
The party receiving the benefits of an annuity, similar to the insured on an insurance policy
An agreement by an insurer to make periodic payments that continue during the lifetime of the annuitant(s) or for a specified period. It is considered to be the opposite of life insurance, since "Annuities" pay while you're alive and life insurance pays when you die
The person to whom policy rights are assign in while or in part by the policyholder
Transfer of rights in a policy to another party by the policyholder.
The present or current age of the insured.
Automatic Premium Loan
A rider in a life policy authorizing the insurance company to use the cash value to pay premiums not paid by the end of the grace period. Only in Whole life or endowment policies
Limits or excludes coverage when the insured is participating in specified types of air travel. Coverage is usually confined to regularly scheduled flights of commercial airlines. Often applies to student pilots
Cash Dividend Option
A dividend option under which the policyholder receives the dividend in cash. This option is not subject to tax
Common Disaster Provision
A provision in a life contract that provides that the primary beneficiary must outlive the insured by a specified period of time in order to receive the proceeds
Convertible Term Insurance
A term life policy that can be converted at any time to a permanent of coverage without proof of insurability.
Insurance on a debtor in favor a lender, intended to pay off a loan or balance due thereon if the insured dies or becomes disabled.
Decreasing Term Insurance
Term insurance whose amount of coverage starts out at the full amount, then gradually decreases until the expiration date of the policy.
An annuity on which payments to the annuitant are delayed until a specified future date.
The return of part of the premium paid for a participating policy issued by a mutual insurer.
If a mutual insurer declares a dividend, the policyholder has a choice of five options which can be changed at any time, including: cash, interest applied to premium when due, paid up additions, or one-year term insurance
A cash value life policy for which premiums are paid for a limited numbers of years, such as to age 65
Extended Term Option
A life insurance nonforfeiture option under which the insured uses the policy's cash value to purchase term insurance in an amount equal to the original policy face amount.
The amount indicated on the face of a life policy that will be paid at the death or when the policy matures.
Family Income Rider
Added to a whole life policy for an additional premium, this rider is similarly to the decreasing term rider except that payments to the beneficiary are in the form of monthly income rather than a lump sum
Family Plan Policy
A combination plan covering your entire family, usually with permanent insurance on the primary earner's life, with the spouse and children automatically covered for lesser amounts (usually term), all included under one premium.
Fixed amount option
A life insurance settlement option under which the beneficiary receives a fixed amount for an unspecified period of time.
Fixed Period option
A life insurance settlement option under which the beneficiary receives a regular income for a specified period of time at which time the principal and interest are depleted
Group Life Insurance
Life insurance that a person is eligible to purchase through membership in a group.
A lump sum annuity which immediately begins paying the annuitant's income payments and continues to pay such benefits for the lifetime f the annuitant.
"Industrial Life" insurance generally has a face amount of less than $1000. Premiums for these policies are collected weekly and in person by the producer.
A life insurance settlement option under which the insurer keeps the insurance proceeds and invest them on behalf of the beneficiary.
Once elected, cannot be changed without the named beneficiary's consent.
Joint Life and Survivor Annuity
Payments are made two annuitants with the survivor continuing to receive payments after the first annuitant dies
Joint Life Annuity
Payments are made to two annuitants with the survivors no longer receiving payments after the first annuitant dies.
The face amount of "juvenile life" insurance increases by a multiple, usually five, of the original face amount when the insured reaches 21.
Level Premium Insurance
Life insurance with premiums that remains at the same level (amount) throughout the life of the policy.
Level term Insurance
The amount of insurance protection in term policy that remains constant during the policy period, which could be five, 10, or 20 years or even to age 65.
An annuity that provides a periodic income ot the annuitant during his or her lifetime
Life annuity with period certain
An Annuitant will receive payments for a specified number of years (such as 10) or the rest of his or her life, whichever is longer. If the annuitant dies before all the guaranteed payments have been made, the beneficiary receives the payments for the rest of the certain period.
Life income Option
A life insurance settlement option that provides for payments during the entire life of the payee.
Straight Life Income
The payee receives a specified income for life, with no refunds upon death.
Income is paid for the lifetime of the payee and to a second payee if the first dies before receiving the full proceeds of the policy
Life income with period certain
The payee receives the installments for life with a second payee receiving the payment if the first dies before the end of the time specified in the period certain
Limited Pay Life
A permanent whole life insurance policy on which premiums are paid for a specified number of years or to a specified age of the insured
The amount added to the cost of mortality to cover the operating expenses of the insurer, such as commissions and the cost of underwriting
The amount of cash value in a whole life or endowment that may be borrowed by the insured
Proceeds of policy taken all at once in a single amount
A statistical table showing the number of deaths for all ages from 1 to 100,in the case of the 1980 mortality table. The 2001 CSO table assumes a life expectancy of 120 years
A life policy is mature when the face amount is payable
Mortgage Protection Policy
In life insurance, a decreasing term policy from which the benefits are intended to pay off the balance due on a mortgage upon the death of the insured
A legal Provision whereby the policyowner of a cash value life insurance policy may choose one of these three:
Cash: A lump sum payment of cash, less any unpaid premiums and outstanding loans plus interest.
Extended Term: The automatic option that an insurer must select if the policy should lapse and the owner has not chosen another option.
Reduced Paid Up: The cash value is used to continue the whole life policy, but with a reduced face amount
One-Year Term Dividend Option
A dividend option under which the insured has the company purchase "one-year term insurance" with the dividend.
Ordinary Life Insurance
Whole life insurance is permanent protection.
Additional singe-premium life insurance paid for by policy dividends and added to the face amount
A rider or provision, usually found in juvenile polices, under which premiums are waived if the payor of the premium becomes disabled or dies while the child is still a minor
Whole Life insurance is considered to be permanent since it covers you until you die or to policy maturity, whichever comes first.
A loan taken by the policyholder from the insurer using the insurance cash value as collateral.
Reduced Paid-Up Insurance Option
A life insurance nonforfeiture option under which the insured uses the cash value of is or her present policy to purchase a single-premium whole life policy, at his or her attained age, for a reduced face amount.
Reduced-premium Dividend option
A dividend option on a participating life policy under which the policyholder has the dividend applied to the next premium due on the policy and he or she only has to pay the difference.
Refund Life Annuity
Provides Annuity Payment for the annuitant's lifetime with the guarantee that in no event will the total income be less than the purchase price of the contract.