Life Insurance Terminology And Definitions Pdf

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Use this glossary to become familiar with terms to make your family protection and retirement planning just a little easier. Accelerated death benefit: Benefit paid, under clearly defined health-related circumstances, to a policyholder prior to his or her death.

Life Insurance Terms

Use this glossary to become familiar with terms to make your family protection and retirement planning just a little easier. Accelerated death benefit: Benefit paid, under clearly defined health-related circumstances, to a policyholder prior to his or her death. Accelerated death benefits are also known as living benefits. Accidental death benefit: A provision added to a life insurance policy for payment of an additional benefit if death is caused by an accident.

Also known as double indemnity. Actuary: A person professionally trained in the technical aspects of insurance and related fields, particularly in the mathematics of insurance such as the calculation of premiums, reserves, and other values. Activities of daily living ADLs : The basic activities of daily living, such as bathing, eating, getting dressed, using the toilet, and transferring from bed to chair.

Independent adjusters are independent contractors who adjust claims for the insurance companies. Agent: A representative of an insurance company who is authorized to sell and service insurance contracts. Life insurance agents are also known as life underwriters or producers.

Annuitant: The person whose life expectancy is used to determine the payout of an annuity. Annuitize: To convert the value of an annuity contract into a steady stream of income for life. Annuity certain: A contract that provides an income for a specified number of years, regardless of life or death. Annuity consideration: The payment, or one of regular periodic payments, that a policyholder makes to an annuity.

Application: A statement of information made by a prospective purchaser that helps the insurer assess the acceptability of risk. Assets: Property owned by an insurance company—including stocks, bonds, and real estate. Insurance accounting focuses on solvency and the ability to pay claims; therefore, a conservative valuation of assets is required.

This prohibits companies from listing assets on their balance sheets when values are uncertain. Asset valuation reserve AVR : A reserve that makes provisions for credit-related losses on fixed-income assets default component as well as all types of equity investments equity component.

Assumption reinsurance: A reinsurance agreement in which one company permanently transfers full responsibility for a block of policies to another company. After the transfer, the ceding company is no longer a party to the insurance agreement.

Automatic premium loan: A loan provision in a life insurance policy allowing any premium not paid by the end of the grace period usually 30 or 31 days to be paid automatically through a policy loan if cash value is sufficient.

Bank holding company: A company that owns or controls one or more banks. The Federal Reserve regulates and supervises bank holding company activities such as approving mergers and acquisitions. The authority of the Reserve applies even though a bank owned by a holding company may be under the primary supervision of the Comptroller of the Currency or the FDIC.

Benefit: The amount payable by the insurance company to a claimant, assignee, or beneficiary when the insured suffers a loss covered by the policy.

Bond: A security obligating the issuer to pay interest at specified intervals and to repay the principal at maturity. Bonds are a form of suretyship: Various types guarantee a payment or reimbursement for financial losses resulting from dishonesty, failure to perform, and other failures. Broker: A sales and service representative who handles insurance for clients and generally sells insurance of various kinds from one company or several.

Business disability insurance: Disability insurance purchased by a business on a member of a firm. Business life insurance: Insurance purchased by a business on the life of a member of the firm. This insurance protects surviving business partners against loss caused by the death of a partner and reimburses corporations for loss caused by the death of a key employee.

Capacity: The amount of insurance available to meet demand. For an individual insurer, it is the maximum amount of risk it can underwrite based on its financial condition. Capital stock: The initial book value of stock sold by a company to start its operations. Cash balance plan: A defined benefit plan that strongly resembles a defined contribution plan.

Benefits accrue through employer contributions to employee accounts and interest credits to balances in those accounts. The accounts serve as bookkeeping devices to track benefit accruals.

Cash value: The amount available in cash upon surrender of a permanent life insurance policy. Also known as cash surrender value. Certificate: A statement issued to persons insured under a group policy that defines the essential provisions of their coverage. Claim: Notification to an insurance company that payment of an amount is due under the terms of a policy. COBRA: Consolidated Omnibus Budget Reconciliation Act A federal law under which group health plans sponsored by employers with twenty or more employees must offer continuation of insurance coverage to employees and their dependents after they leave their employment.

Codification: A process undertaken by NAIC to redefine life company statutory accounting to ensure consistency in how companies present their accounts in their annual statements. This process culminated in the annual statements, the structure of which was noticeably different from the previous years. Convertible term insurance : Term insurance that can be exchanged, at the option of the policyholder and without evidence of insurability, for another plan of insurance.

Credit disability insurance: Disability insurance issued through a lender or lending agency to cover payment of a loan, an installment purchase, or other obligation in case of disability. Credit life insurance: Term life insurance issued through a lender or lending agency to cover payment of a loan, an installment purchase, or other obligation in case of death. Deductible: The amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid.

The larger the deductible, the lower the premium charged for the same coverage. Deferred group annuity: A type of group annuity providing for the purchase each year of a paid-up deferred annuity for each group member. The total amount received by a member at retirement is the sum of these deferred annuities.

Defined benefit plan: A pension plan that specifies the benefits an employee will receive after retirement. Benefits typically are based on length of service and salary, and are usually funded by the employer on behalf of each plan participant.

Defined contribution plan: A pension plan that specifies the contributions made by employees, and in many cases the employer, on behalf of each plan participant. These funds accumulate for each participant until retirement, when they are distributed as a lump sum or monthly annuity. Benefits are based on the amount of contributions plus earnings.

Deposit administration group annuity: A type of group annuity that allows contributions to accumulate in an undivided fund, out of which annuities are purchased as each member of the group retires.

Deposit term insurance: A form of term insurance in which the first-year premium is larger than subsequent premiums. A partial endowment typically is paid at the end of the term period. In many cases, the partial endowment can be applied toward the purchase of a new term or whole life policy. Deposit-type contracts: Contracts that do not include mortality or morbidity risks.

Disability: A physical or mental condition that makes an insured person incapable of working. Disability benefit: The benefit paid under a disability income insurance policy; also a feature added to some life insurance policies providing for waiver of premium, and sometimes payment of monthly income, if the policyholder becomes totally and permanently disabled.

Dividend: An amount of money returned to the holder of a participating life insurance policy. The money results from actual mortality, interest, and expenses that were more favorable than expected when the premiums were set. Earned premium: The portion of premium that applies to the expired part of the policy period. Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires.

Equity in investments: The ownership interest of shareholders. In a corporation, stocks as opposed to bonds. Evidence of insurability: The common requirement by life insurance companies that potential policyholders undergo a physical examination or medical tests, such as blood pressure or cholesterol screening, before the applicant can purchase an individual life insurance policy.

Extended term insurance: A form of insurance available as a non-forfeiture option providing the original amount of insurance for a limited time. Face amount: The amount stated on the face of a life insurance policy that will be paid upon death or policy maturity.

The amount excludes dividend additions or additional amounts payable under accidental death or other special provisions. Family policy: A life insurance policy providing insurance on all or several family members in one contract.

It generally provides whole life insurance on the principal breadwinner and small amounts of term insurance on the spouse and children, including those born after the policy is issued.

Fiduciary: A person or organization authorized to control or manage pension assets to administer a pension plan. Fiduciaries are legally obligated to discharge their duties solely in the interest of plan participants and beneficiaries, and are accountable for any actions that may be construed by courts as breaching that trust.

Fixed annuity: A deferred annuity contract in which the life insurance company credits a fixed rate of return on premiums paid or an immediate annuity in which the periodic amount is fixed. Flexible premium policy or annuity: A life insurance policy or annuity contract that allows the amount and frequency of premium payments to be varied. Fraternal life insurance: Life insurance provided by fraternal orders or societies to their members.

Fraud: Intentional lying or concealment by policyholders to obtain payment of an insurance claim that would otherwise not be paid, or lying or misrepresentation by the insurance company managers, employees, agents, and brokers for financial gain. General account: An undivided account in which life insurers record all incoming funds. Grace period: A period of usually a number of days following each insurance premium due date except the first, during which an overdue premium may be paid and the policy be maintained.

All policy provisions remain in force during this period. Group annuity: A pension plan providing annuities at retirement to a group of people under a master contract, usually issued to an employer for the benefit of employees.

Each group member holds a certificate as evidence of his or her annuity. Group life insurance: Life insurance on a group of people, usually issued to an employer for the benefit of employees. Each group member holds a certificate as evidence of his or her insurance. Guaranteed interest contract GIC : A contract offered by an insurance company guaranteeing a rate of return on assets for a fixed period, and payment of principal and accumulated interest at the end of the period.

GICs sometimes are used to fund the fixed-income option in defined contribution plans, such as k s. Indemnity reinsurance: A form of reinsurance in which the risk is passed to a reinsurer, which reimburses the ceding company for covered losses. The ceding company retains its liability to and contractual relationship with the insured. Also referred to as equity indexed annuity. Individual life insurance: Life insurance on a person with premiums payable annually, semiannually, quarterly, or monthly.

Individual policy pension trust: A type of pension plan frequently used for small groups and administered by trustees authorized to purchase individual level-premium policies or annuity contracts for each plan member. The policies usually provide both life insurance and retirement benefits. Individual retirement account IRA : An account to which a person can make annual contributions of earnings up to a specified dollar limit.

Insurance policy

No worries! Start here and learn about the basic terminologies involved in life insurance. The policyholder is the one who proposes the purchase of the life insurance policy and pays the premium see 7 Premium. Life assured is the insured person. Life assured is the one for whom the life insurance plan is purchased to cover the risk of untimely death. Primarily, the breadwinner of the family is the life assured. Life assured may or may not be the policyholder.

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Life Insurance Guide to Policies & Companies

This list is not meant to be all inclusive, but should help with your understanding some insurance terms used in our website. Words associated with Surety and Bonds and Title Insurance are listed separately at the end of this list. Title insurance provides coverage for losses that occur when a land title is not free and clear of defects e.

Glossary of Insurance Terms

As you experience changing events in life and take on greater responsibilities, you may need to manage different kinds of life, health, automobile or home insurance. To help you get started, we have put together this guide to basic insurance terminology:. Are you starting a new family? Do you have a spouse or children who you want to provide for in life and in death? Here is some of the basic terminology for life insurance:. Need Assistance?

In insurance , the insurance policy is a contract generally a standard form contract between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language. Insurance contracts are designed to meet specific needs and thus have many features not found in many other types of contracts. Since insurance policies are standard forms, they feature boilerplate language which is similar across a wide variety of different types of insurance policies. The insurance policy is generally an integrated contract, meaning that it includes all forms associated with the agreement between the insured and insurer.

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Finding an affordable student health insurance plan can be difficult, especially if there are insurance terms you don't understand. Simply having the basic understanding of insurance definitions can make the difference between having a plan that will cover you for the majority of your medical expenses and one that leaves you paying thousands of dollars. Listed below are some of the most important definitions to know when searching for a health insurance plan. This is the actual cost of your insurance plan. Keep in mind that the higher the premium, the higher your coverage and thus, the less you will have to pay in medical bills throughout the year.

Но Беккер слишком устал, чтобы обращать внимание на оскорбления. Проваливай и умри. Он повернулся к Росио и заговорил с ней по-испански: - Похоже, я злоупотребил вашим гостеприимством. - Не обращайте на него внимания, - засмеялась.  - Он просто расстроен. Но он получит то, что ему причитается.  - Она встряхнула волосами и подмигнула .

 Никакого вируса. Выслушай меня внимательно, - попросил Стратмор. Сьюзан была ошеломлена. ТРАНСТЕКСТ еще никогда не сталкивался с шифром, который не мог бы взломать менее чем за один час. Обычно же открытый текст поступал на принтер Стратмора за считанные минуты. Она взглянула на скоростное печатное устройство позади письменного стола шефа.

Смит поднял брови. - Выходит, выбор оружия был идеальным. Сьюзан смотрела, как Танкадо повалился на бок и, наконец, на спину. Он лежал, устремив глаза к небу и продолжая прижимать руку к груди. Внезапно камера отъехала в сторону, под деревья.

Ему показалось, что внутри звучали какие-то голоса. Он постучал. - Hola. Тишина.

 Estas ya muerto, - тихо прошептал он, двигаясь по центральному проходу. Ты уже мертвец. Времени на какие-либо уловки уже не .

 - Это очень странно. В ключах никогда не бывает пробелов.

4 Response
  1. Bruce G.

    Life Insurance: Glossary of Terms. Accumulation Value: Term used in Universal Life policies to describe the total of all premiums and earnings credited to the.

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