Insurance Terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accelerated Benefit Rider
A life insurance policy benefit that allows the insured
or policy owner The right to receive a percentage
of the insurance policy death benefit in advance
if the insured is diagnosed with a terminal illness
and not expected to live for a period of at least
12 months. Written proof of terminal illness from
a medical professional must be obtained before the
insurance company will pay a benefit.
Accidental Death and Dismemberment Rider
A life policy rider that pays a percentage of the death
benefit if the insured is killed in a covered accident
or loses sight or limbs as a result of an accident.
This benefit can be added on most life insurance policies
but is generally expensive and very limited in what
it will cover.
Accumulation Value
In adjustable, equity indexed,
variable universal and universal life policies, the
accumulation value is
equal to the policy’s cash value before the deduction
of any applicable surrender charges when determining
the policy’s net surrender vale.
Age at Issue
Policies are approved and issued
on a specific date. Insurers generally use the nearest
age or last age
of the insured to determine the insured’s age
as of the issuance date.
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Agent
Individuals or businesses that are licensed to sell
life insurance by the State Departments of Insurance.
The agent or insurance sales person or entity has primary
duties to the insurance company and not to the applicant.
Agents may represent just one-ore many-insurance companies,
and are generally paid commissions by the insurer with
whom the policy has been written.
AM Best Rating Services
AM Best is an independent rating organization that
ranks insurance companies by financial strength and
managerial abilities. Please see the various financial
ratings of each insurance company when requesting a
quote. The website for AM Best is www.ambest.com.
Annual Renewable Term Insurance
Annual Renewable Term (ART) is a type of term life
insurance that offers a guaranteed rate for one year.
Each subsequent year, the policy renews at a higher
rate based on the insured's next age. At some point,
the price of annually renewable term becomes cost prohibitive.
Application
A form provided by the insurer to obtain an individual’s
declaration of personal, occupation health, financial,
and avocation information. The information provided
by the insured (and typically completed by the agent)
forms the basis on which an insurance company will
make an offer to provide coverage. The application
becomes a part of the legal contract of insurance,
and the insurer is generally allowed to challenge
misstatements if death occurs within 2 years of policy
issue.
Assignment
Life insurance is considered property. Therefore insurance
policies are legally assignable to another party in
part or in full including all rights.
Assignee
An individual or entity that receives the rights in
a life insurance policy assigned by the policy owner.
Attained Age
The current age of the insured as measured from the
age at the time the policy was issued.
Automatic Premium Loan Provision
Generally applicable to fixed premium policies such
as whole life, an “APL” provision will
allow the insurance company to borrow the due and payable
premium from cash values if the premium hasn’t
been paid after 31 days from the premium due date.
This provision prevents unpaid premium from putting
the policy into a “lapse” condition.
Beneficiary
An individual or individuals, corporation, or trust
that is entitled to receive the policy proceeds
of an insurance policy in the event that the
insured is deceased. Beneficiaries can be named
in a number of different ways including primary,
contingent, tertiary, revocable and irrevocable
to list a few.
Broker
The terms “broker” and “agent” are
defined by the various State Departments of Insurance.
A broker (a term typically applied to those selling
property and casualty insurance) is deemed to primarily
represent the customer and not the insurance company.
A broker generally represents more than one insurance
company, and the broker’s compensation is generally
paid as a commission by the insurer with whom the policy
has been written.
Cash Surrender Value
The actual cash value that the policy owner would receive
in the event a policy is surrendered. In a whole life
policy, the surrender value is typically equal to the
cash value less the surrender charge if applicable.
The surrender value may be less in indeterminate premium
policies, depending on how long the policy was in force
before surrender.
Cash Value
Cash value is the excess accumulation of funds within
a whole life or universal life insurance policy. Cash
values generally grow tax deferred and can be withdrawn
or borrowed if the policy allows. Cash values are not
guaranteed.
Children's Insurance Rider
A rider added to an insurance policy to protect the
lives of children. Usually offered in increments of
$5,000.00 and generally covers all eligible children
to their age 18. Not available with all policies.
Collateral Assignment
Similar to an assignment, certain rights in a life
insurance policy can be assigned to a third party,
typically as security for a loan or other transaction.
Collateral assignments are generally not made for a
specified amount, rather are defined “to the
extent that his interest may appear.” The assignment
is registered with the insurer, and typically the assignee
must prove to the insurer the amounts that are owed
to it if and when the assignment collection criteria
are met.
Conditional Receipt
A conditional receipt is given to an insured that submits
money with the initial application for life insurance.
It offers immediate coverage “conditionally”,
after the medical exam is completed, contingent upon
the company's acceptance of the insured. The terms
of the conditional receipt will vary among insurance
companies.
Contestable Clause
All insurance companies have a period of two years
from the policy issue date during which statements
made on the application can be challenged for misstatement
should death occur within that period. After the contestable
period, the policy becomes incontestable except for
application statements that can be proven as fraudulent.
Contestability Period
Within the first 2 years of an insurance policy, the
insurance company has the right to investigate a death
claim for fraud and misrepresentation. The contestability
period allows the insurance company to deny claims
that are fraudulent. All insurance companies will investigate
death claims with the first 2 years. The burden of
proof for denying a claim is on the insurance company.
Contingent Beneficiary
An individual or entity that is entitled to receive
the proceeds of a life insurance policy if the primary
beneficiary is not living at the time of the insured’s
death. The contingent beneficiary can be an individual,
several individuals, a corporation, trust, or charitable
organization.
Contract
A life insurance policy is considered a legal contract
between the insurer and the owner of the policy. Only
the policy itself serves as the contract. Statements
made by the agent and policy illustrations are not
part of the contract of insurance.
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Conversion Privilege
This benefit allows the covered individual the opportunity
to "convert" or exchange an existing term
life insurance policy for a permanent or "whole
life" policy without evidence of insurability.
The conversion privilege protects an insured's ability
to maintain insurance coverage when outside coverage
may not be attainable due to significant health problems.
Conversion privileges vary among insurance policies.
In short, if all other things are equal, the policy
offering the longer conversion period is usually the
better the policy.
Convertible
Term Insurance
Term insurance which can be exchanged (converted), at the option of the policy
owner
and without evidence of insurability, for a permanent insurance policy.
Cost of Insurance
Generally applicable to current assumption policies
such as equity indexed, variable and universal life,
cost of insurance charges are monthly charges for mortality
and other elements of insurer expense that are assessed
against the policy based on the insured’s current
age, the original rate class, and the current net amount
at risk.
Current Assumption
Life insurance policies that provide for contractually
guaranteed minimum interest rates and maximum costs
of insurance while at the same time offering the potential
for higher non guaranteed policy credits and lower
non guaranteed costs of insurance and other expenses.
Assumptions may be changed by the insurer at its discretion
and experience.
Current Interest Rate
The interest rate that the insurance company declares
at the beginning of each determined period that is
credited daily to the unloaded portion of the accumulation
value. The current interest rate will never be less
than the guaranteed interest rate.
Date of Issue
The effective date of the policy as issued by the insurer.
Death Benefit
The insurance amount stated in the insurance policy.
Can be any amount subject to certain specific limitation
set forth by the insurance company. Death benefits
are payable on the death of the insured and are generally
payable to the beneficiary or beneficiaries income
tax free.
Death Claim
When an insured dies, the policy owner will provide
the insurer with poof of death (including a death certificate)
and other information to cause the proceeds of the
policy to be paid to the beneficiary.
Decreasing Term
Decreasing term is a type of term life insurance
where the insurance amount decreases over time. Most
decreasing
term policies are tied to some form of note or mortgage
and as you pay down the mortgage, the insurance amount
decreases. These policies were very popular 10-15
years ago; however, level term life insurance is
now generally
more competitive.
Deduction Amount
A monthly charge in a universal life policy, deducted
from the accumulation value on each deduction day,
which is comprised of the cost of insurance charge
and any other expense charge shown on the policy
summary and any charge for supplemental benefits.
Deduction Day
Each month, the day on which the deduction amount
is taken from the policy. The deduction day is always
listed in the policy summary. The first deduction
day
is the policy date.
Dividend
Dividends are cash payments credited to whole life
policies generally as a percentage of current cash
value. They are not guaranteed. Dividends are paid
by mutual insurance companies and are considered
to be a return of excess premium payments. Dividends
can
be used to increase cash value, reduce the current
premium, or buy additional paid up insurance.
Endow
A policy will endow when the whole life or “endowment” policy’s
cash value is equal to the death benefit of the policy.
Evidence of Insurability
When purchasing any life insurance policy, you must
prove that your health is reasonably good. Proving
your health is the evidence that you are insurable.
Once a life insurance policy is in force, no further
evidence of insurability is required to maintain the
policy.
Excess Interest
The difference between the current rate of interest
an insurer actually pays and the guaranteed interest
rate.
Exclusions
Exclusions are specific events or circumstances where
the insurance company has the right to deny an insurance
claim. They are always listed in the policy. Common
exclusions include suicide within the first 2 years
and fraud. A careful review of your policy for exclusions
is wise.
Expense Charge
A monthly charge paid to an insurance company based
on various elements of the policy such as insured’s
attained age, original rate class, etc. Allowable charges
are specified in the policy; at its discretion, the
insurer may charge less than the contractual amount
as circumstances allow.
Face Amount
The amount of insurance listed in the policy and applied
for by the purchaser. The face amount is the same as
the death benefit. Face amounts can be any amount subject
to certain specific limitations set forth by the insurance
company.
Flat Extra Rating
A flat extra rating is an extra charge that is applied
to some policies where the insured has very adverse
health conditions such as cancer or does hazardous
sports or hobbies such as skydiving. Flat extra charges
are usually applied as a dollar cost per thousand.
For example, an individual that had cancer within the
last 3 years may be charged a flat extra rating of
$3.00/$1,000 of insurance for the first 5 policy years.
The flat extra charge allows the insurance company
to offer a policy where they might otherwise have to
decline to make an offer.
Free-Look Provision
The free look provision allows policyholders a 10-30
day period to review the policy and, if they choose
not to accept the policy, return it for a full refund.
If returned, the policy will be considered to be void
from inception.
Funding Premium
The premium for policies such as universal, equity-indexed
and variable universal life that are designed without
fixed premiums. As these indeterminate premium policies
do not have a set premium, the term funding premium
is used to describe the chosen premium that is paid
for a specific policy. The funding premium can change
at the discretion of the policyholder subject to certain
policy minimums.
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Grace Period
The period after the premium payment is due wherein
the policy owner is generally given 31 days within
which to make payment without jeopardizing the death
benefit. Universal Life and Variable Universal Life
policies may allow 30-60 days for additional funding
premiums to be paid if there is insufficient cash
value to sustain the policy during the monthly calculation
of expense charges and policy credits.
Gross Return
Generally a term for Variable Universal Life, a gross
return is the long-term average return assumed to be
earned before deducting the management fees and other
expenses described in the prospectus. Variable Universal
Life Illustrations almost always assume a gross return,
not to exceed the regulatory maximum of 12 percent.
Annual fees can range from 0.25 percent to more than
2.0 percent of the account value.
Guaranteed Insurability Option
A policy rider, the guaranteed insurability option
assures the policy holder the right to purchase additional
amounts of insurance at predetermined future intervals
or ages without providing evidence of insurability.
Indebtedness
Policy indebtedness is all outstanding loans on an
insurance policy, including any unpaid interest. The
loan interest rate charged, which is payable in advance,
is shown on the policy summary.
Indeterminate Premium
A characteristic of equity index, universal, adjustable,
and variable universal life policies in which the premium
is estimated but not guaranteed. As long as the policy
minimum premium is paid, the policy may remain in force.
If however, only the minimum premium is paid, there
is a strong likelihood that premiums will have to be
increased in the future to maintain enough cash to
cover the increased insurance costs. It is the policy
owner’s responsibility to manage policy payments
to ensure the sufficiency of the policy.
Insurable Interest
When a policy is purchased, the buyer must have an
economic interest in the life if the insured, or a
demonstrable expectation of loss upon the death of
the insured. A spouse is always considered to have
an insurable interest. A business partner is similarly
considered to have an insurable interest based on the
economic value of the partnership. Your neighbor, however,
cannot but a policy on your life-even with your cooperation-unless
a valid economic basis can be demonstrated. Once a
policy is purchased, the policy owner is free to designate
anyone he or she wishes as beneficiary. Policy ownership
can be transferred after the policy had been issued,
somewhat bypassing insurable interest statutes.
Insurability
Insurability refers to an individual's good health
and ability to obtain life insurance. If an individual
is unable to obtain life insurance due to bad health,
the individual is considered to be uninsurable.
Insured or insured life
The person on whose life the policy is issued.
Issue Date
The specific date when the insurance company issues
an insurance policy. The issue date is shown in the
policy summary.
Lapsed Policy
The termination of an insurance policy resulting from
non-payment of premiums within the specified premium
grace period.
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Level Premium
Generally refers to the initial period of a
term policy in which the premiums are guaranteed to
remain fixed.
At the end of the initial period, premiums will generally
increase annually and at a significantly higher rate
than the level premium.
Level Premium Period
The level premium period generally refers to the length
of guaranteed premiums for level term life insurance
policies. For example, insurance companies currently
offer 5, 10, 15, 20, 25, and 30-year level premium
policies.
Level Term Insurance
Level term insurance offers a fixed price and fixed
death benefit for a predetermined time period usually
5, 10, 15, 20, 25, or 30 years.
Life Settlement
A life settlement is a transaction in which an existing
life insurance policy that is no longer needed or
is in danger of lapsing is offered for sale to institutional
investors in the secondary market. Individuals over
the age of 70 with moderate health concerns who own
such insurance might find that their policy is worth
as much as 25 percent of the current death benefit.
The financial enterprises that purchase life settlements
will maintain such policies until the insured’s
death.
Maturity Date
A Life insurance policy will typically mature at
age 95 or 100, although newer policies may provide
for
contract maturity as far out as age 120. When the policy
matures, all accrued benefits as described in the policy
are paid. Some insurers allow the deferral of matured
values until the insured’s actual death.
Medical Information Bureau (MIB)
All responses on a policy application are subject to
submission to the MIB, an independent entity that collects
and stores medical data on life and health insurance
applicants. This information is exchanged among member
insurance companies with written authorization of the
insured. Its purpose is to prevent applicant fraud
and to help insurers discover withheld information
that may be contained in the database.
Misstatement of Age
If the age of the insured is misstated and is not discovered
until death of the insured, the insurance company has
the contractual right to adjust the death benefit to
reflect the face amount that would have been paid with
the corrected age and actual premiums paid.
Modal Premium
The modal premium is the payment method selected by
the insured to pay policy premiums. There are generally
4 premium mode options including annual, semiannual,
quarterly, and monthly bank draft. There is usually
a higher incremental cost for all modal premium options
other that annual. In other words, you may pay 2-6%
more on an annualized basis for semiannual, quarterly,
and monthly bank draft options.
Modified Endowment contracts (MEC)
Modified Endowment Contracts (MEC) are the result of
paying too much funding premium into a equity indexed
universal life, variable universal life , or other
adjustable life policy in too short a period of time
(usually in the first 7 years). The insurance company
can accurately determine whether payments into a life
insurance policy run the risk of becoming a “MEC.” When
a policy becomes a MEC, the tax status of death benefit
is unaffected and any policy build up continues to
grow tax deferred. However, any withdrawal of cash
values prior to the insured’s age 59 ½ will
be subject to a 10% penalty. Additionally, withdrawals
from the policy are taxed on the LIFO tax basis meaning
the cash value “last in is the first out” therefore
generating an instant taxable event.
Monthly Anniversary
Adjustable life, indexed life, universal and variable
universal life insurance policies account for expenses
and credits on a monthly basis. Therefore, the monthly
anniversary is the same day of each month as the policy
anniversary date.
Moody's Investor Service
Moody's Investor Service is an independent insurance
rating service that rates the financial strength
of all insurance companies. You can visit Moody’s
Investor Service online at www.moodys.com.
A password is required.
Net Amount of Insurance at Risk
The difference between a life insurance policy’s
total face amount and the policy’s cash value.
The net amount at risk is the amount of insurance that
the insurance company is responsible for covering in
the event that death occurs. Insurance companies calculate
the actual insurance costs associated with a specific
policy based on the net amount of insurance at risk.
Net Cash Surrender Value
A life insurance policy’s cash surrender value
less any outstanding loans or surrender charges.
Nonforfeiture Values
For more than 100 years, insurance regulators have
required that permanent life insurance policies have
certain equity rights, even when the policy might lapse
due to non payment of premiums. Nonforfeiture values
include cash value net of loans, reduced paid-up life
insurance, and extended term insurance.
Option A-Level Death Benefit
Universal life policyholders may elect a level death
benefit (Option A) that is fixed and doesn’t
increase unless required to maintain a policy’s
status as life insurance under IRS rules. With a level
death benefit option, the net amount of insurance at
risk with decrease over time assuming proper premiums
are paid.
Option B Increasing Death Benefits
Universal life policyholders may elect an increasing
death benefit (Option B) that increases as a policy’s
cash values increase. With an increasing death benefit
option, the net amount of insurance at risk never decreases
over time as all cash values are added to the initial
face amount to determine the actual death benefit.
Other Insured Rider
An optional policy rider that provides specified amounts
of term insurance on the life of a spouse or child
of the primary insured.
Participating Policy
A participating policy is typically issued by a mutual
life insurer whose profits (surplus) are for the benefit
of its policyholders. If there is sufficient surplus
to be paid out amongst the current policyholders, they
will be paid out in the form of dividends. Dividends
can be taken in cash, used to reduce the premium due,
or used to purchase additional paid up insurance.
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Payor
Typically the policy owner, the payor is the person
or entity making premium payments on a life insurance
policy.
Permanent Life Insurance
Permanent life insurance is "whole life" insurance.
Permanent insurance is more costly than term because
it builds cash value and is designed to last a lifetime.
The premiums and death benefits are generally fixed
for the insured's lifetime.
Planned Periodic Payment
Adjustable life, equity indexed universal life, and
variable universal life insurance policies do not have
specified planned periodic premiums. The policy owner
determines how much premium to pay subject to policy
minimums. The application will ask for a specific amount
to be billed on a periodic basis (monthly, quarterly,
semi-annual, or annual), and this amount can generally
be changed at the policy owner’s discretion.
Policy
The policy is the basic written agreement between the
insurer and the policy owner. The policy, together
with the application, exam and all endorsements and
attached papers, constitutes the entire contract of
insurance. The policy illustration is specifically
excluded from the contract.
Policy Anniversary
The policy anniversary occurs yearly on the day and
month of the policy date.
Policy Date
The actual day month and year on which coverage becomes
effective.
Policy Exchange
Usually the result of a policy replacement, any potential
taxable gain associated with terminating a policy can
be deferred by qualifying the purchase of a new policy
as an exchange under the provisions of Internal Revenue
Code 1035.
Policy Loan Amount
An amount of cash values less the policy surrender
charges that can be borrowed by the policy owner. The
policy loan does not have to be repaid, but interest
(as specified in the policy) will be charged and the
total loan plus unpaid interest will be subtracted
from policy proceeds if the loan is outstanding at
the time of death or surrender of the policy.
Policy Month
Twelve one month periods during the policy date of
the policy anniversary.
Policy Owner
The policy owner is an individual, trust or entity
that has control of or owns the policy. The policy
owner has rights to changing the beneficiary, payment
modes, and payout options.
Preferred Risk
Preferred risk refers to the general health of the
individual applying for insurance. All insurance companies
have several categories of risk that allow the insurance
company to properly price the individual risk associated
with each application for life insurance. A Preferred
Risk is considered to be an individual in very good
health with an above average life expectancy.
Premium
The payment amount required to maintain the insurance
policy. Premiums can generally be paid annually, semiannually,
quarterly, or monthly bank draft.
Primary Beneficiary
The primary beneficiary is the individual(s), trust,
or other entity that receives the proceeds of the insurance
policy in the event of the insured's death.
Rated/Rate Class
Individuals are “rated” based on health,
occupation, avocation, and other lifestyle considerations.
Individuals with above average “ratings” are
generally classified as “preferred, “and
all things being equal will pay lower premiums than
individuals that are”standard” or “sub-standard” risks.
Reinstatement Provision
Most life insurance policies will grant the policy
owner the right for a limited period of time to reinstate
a policy after it has lapsed. Evidence of insurability
will generally be required, as well as back premiums
and interest.
Replacement
Often defined by state insurance regulation, a replacement
is typically deemed to have been made when an agent
solicits a new policy in exchange for an old one.
Rider
A rider is an additional feature or benefit added to
a policy at an additional cost. Riders are usually
available for disability, children' insurance, an additional
purchase options. Riders may vary among insurance companies.
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Secondary Guarantee
Contractual guarantees offered by life insurance companies
that state policies are guaranteed to pay a death benefit
even if the cash value falls to $0. Rather than the
cash value sustaining the policy, the insurer provides
a secondary guarantee that it will pay the death benefit
regardless of policy reserves. Secondary guaranteed
policies are extremely cost effective for assuring
a long term death benefit but will not build excess
cash values. They are designed to provide low cost
life insurance protection for an individual’s
lifetime whether they live 30 years or to age 110.
Second-to-die (Survivorship) Life Insurance
Second-to-die (Survivorship) life insurance is a form
of whole life insurance that covers two lives and pays
the proceeds at the death of the second insured. This
type of policy is used primarily for estate planning.
Standard and Poor’s
Rating Services
Standard and Poor’s is an independent insurance
rating service that ranks the financial strength of
all insurance companies. You can visit Standard and
Poor’s online at www.standardandpoors.com.
Standard Risk
Standard risk is an underwriting classification that
refers to the overall health of the individual applying
for life insurance. A standard risk is an individual
that is in average health with an average life expectancy.
Stated Amount
A dollar amount used to determine the death benefit
of the policy.
Sub-Standard Risk
Sub-Standard risk is an underwriting classification
for individuals that have significant health concerns.
Generally, sub-standard risks have a shorter than average
life expectancy due to a health impairment and will
therefore pay higher premiums for their insurance than
preferred or standard risk individuals.
Suicide Provision
All life insurance policies have a standard suicide
provision that states there will be no insurance proceeds
paid in the event that the insured commits suicide
within the first 2 policy years. During this 2-year
period, the insurance company's liability is limited
to premiums paid.
Surrender
The policy owner’s right to terminate policy
coverage in exchange for the policy’s cash surrender
value or other nonforfeiture values.
Surrender Charge
Typically applicable to adjustable life, indexed universal
life, and variable universal policies, a generally
declining schedule of charges against the cash value
may be imposed on the policy for a certain number of
years from policy inception if the policy is surrendered,
the death benefit is reduced, or in some instances,
the surrender charge is taken into account in the monthly
calculation to determine if the policy is still in
force.’
Surrender Value
In most policies, the surrender value is typically
the cash accumulated value less any applicable surrender
charges. The surrender value will vary depending on
the insurance company and the actual policy type. Generally
speaking, the surrender value will equal cash values
after a certain period of time depending on the specifics
of the policy and how long the policy has been in force
before the policy is surrendered.
Term Life Insurance
Term life insurance is "temporary" coverage
usually offered in level periods of 5, 10, 15, 20,
25, and 30 years. Term life insurance is designed
to cover specific risks for a specific time period.
Term
insurance is the cheapest form of life insurance.
Underwriter
The underwriter (insurance company) is an employee
of the insurance company and is the individual responsible
for reviewing applications and medical histories and
accessing the applicants risk to the company. The underwriter
is the person that determines the rate class that each
applicant will obtain based on the applicant' medical
history.
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Underwriting
Underwriting is the process where the insurance company
reviews each individual's application and medical history
and determines the rate class that each individual
will obtain. Underwriting is the most crucial part
of the entire process of applying for life insurance.
Universal Life Insurance
Universal life insurance is a combination of whole
life insurance and term life insurance. The pricing
of the policy is based on annual renewable term life
insurance and increases each year. The premiums are
flexible and are designed to cover the costs of the
insurance with the difference being applied to a cash
value that grows at a given interest rate. Universal
life polices are more expensive than term and cheaper
than whole life. Some universal life policies offer
long term guarantees but most do not. If considering
universal life, make sure than you buy a policy hat
offers long-term guarantees.
Valuation Date
A date on which policy account values-typically in
variable policies-are contractually determined.
Variable Universal Life Insurance
Universal life insurance is a combination of whole
life insurance and term life insurance. The pricing
of the policy is based on annual renewable term life
insurance and increases each year. The premiums are
flexible and are designed to cover the costs of the
insurance with the difference being applied to a cash
value that grows at a given interest rate. Universal
life polices are more expensive than term and cheaper
than whole life. Some universal life policies offer
long term guarantees but most do not. If considering
universal life, make sure than you buy a policy hat
offers long-term guarantees.
Waiver of Monthly Deduction
A rider that waives monthly cost of insurance charges
in an Adjustable, Universal, or Variable Universal
life insurance policy for a period of disability
as outlined and defined in the policy.
Waiver of Premium Rider
The waiver of premium rider can be added to the basic
life policy and covers the insured in the event that
he or she becomes disabled. If disability occurs and
the rider is in effect, the insurance premiums are
waived for the period of disability. Generally, this
benefit becomes effective after the insured had been
disabled for 6 months and lasts until the insured is
no longer disabled.
Waiver of Specified Premium
A rider that waives premiums in a Whole Life or term
policy-or waives a planned premium in an Adjustable,
Variable, or Universal Life policy-for a period of
disability as outlined and defined in the policy.
Weiss Research Rating Services
Weiss is an independent insurance rating service that
ranks insurance companies for safety. Weiss Research
is the most conservative of all rating services. You
can visit Weiss Research online at www.weissratings.com.
Whole Life Insurance
Whole life insurance offers fixed premium payments
for life and builds guaranteed cash value. Whole life
is the most expensive form of life insurance. Purchasers
of whole life insurance are "self-funding" their
insurance program and want to "own" their
life insurance.
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