Term
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Definition
| Individual life insurance that includes many types of temporary (term) and permanent (whole life, endowment, universal life, variable universal life, and other interest-sensitive cash value plans) insurance protection plans written on individuals with premiums paid monthly, quarterly, semiannually, or annually. |
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Term
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Definition
| Insurance written for employer-employee groups, associations, and creditors to provide coverage for a number of individuals under one contract. |
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Term
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Definition
| Insurance characterized by benefit amounts that decrease gradually over the term of protection. |
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Term
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Definition
| Insurance that provides permanent protection for the whole of life--from the date of issue to the date of the insured's death, provided premiums are paid. |
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Term
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Definition
| Whole life policy distinguished by premiums that are lower than typical whole life premiums during the first few years (usually five) and then higher than typical therafter. |
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Term
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Definition
| A whole life insurance policy issued by a mutual insurer, in which policy dividends are used to provide extra death benefits or to reduce future premiums. |
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Term
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Definition
| Whole life policies that have level premiums that are limited to a certain period (less than life). |
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Term
| Modified Endowment Contract (MEC) |
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Definition
| A life insurance policy under which the amount a policyowner pays in during the first year exceeds the sum of net level premiums that would have been payable to provide paid-up future benefits in seven years. |
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Term
| Minimum Deposit Whole Life |
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Definition
| Whole life insurance that begins building cash values immediately upon payment of the first premium. From that point, the policyowner systematically borrows from the cash value to pay some or all of the premium. |
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Term
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Definition
| Insurance written on the lives of children (ordinarily age one day to age 14 or 15 years). |
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Term
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Definition
| Life policies distinguished by their flexibility that comes from combining term and permanent insurance into a single plan. The policyowner determines how much face amount protection is needed and how much the premium the policyowner wants to pay. |
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Term
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Definition
| A variation of whole life insurance, characterized by considerable flexibility. Allows its policyowners to determine the amount and frequency of premium payments and to adjust the policy face amount up or down to reflect changes in needs. |
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Term
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Definition
| A product that blends many features of whole life, universal life, and variable life. |
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Term
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Definition
| Insurance chracterized by comparatively small issue amounts, such as 1000, with premiums collected on a weekly or monthly basis by the agent at the policyowner's home. Quite often it is marketed and puchased as burial insurance. |
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Term
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Definition
| Insurance that provide a level amount of protection for a specified period, after which the policy expires. |
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Term
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Definition
| Term insurance that provides a death benefit that increases at periodic intervals over the policy's term. |
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Term
| Graded Premium Whole Life |
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Definition
| Whole life policy where premiums are lower than typical whole life rates during the preliminary period following issue (usually five to ten years) and increase each year until leveling off after the preliminary period. |
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Term
| Single-Premium Whole Life |
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Definition
| Whole life policy that involves a large one-time-only premium payment at the beginning of the policy period. From that point, the policy is completely paid for. |
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Term
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Definition
| Whole life policy where the face amount automatically increases as the Consumer Price Index (CPI) increases. |
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Term
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Definition
| A policy is characterized by cash values that grow at a rapid pace so that the policy matures or endows at a specified date (before age 100). |
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Term
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Definition
| One policy that covers two or more people. Using some type of permanent insurance, it pays the death benefit when one of the insureds dies. The survivors then have the option of purchasing a single individual policy without evidence of insurability. A variation of the joint life policy is the last surivivor policy, also known as a "second-to-die" policy. This plan also covers two lives, but the benefit is paid upon the death of the last surviving insured. |
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Term
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Definition
| Life insurance designed to cover the life of a debtor and pay the amount due on a lown if the debtor dies before the loan is repaid. |
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Term
| Multiple Protection Policy |
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Definition
| Life insurance that pays a benefit of double or triple that face amount if death occurs during a specified period. If death occurs after the period has expired, only the policy face amount is paid. |
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Term
| Interest-Sensitive Whole Life |
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Definition
| Also known as current-assumption whole life, this policy is characterized by premiums that vary to reflect the insurer's changing assumptions with regard to its death, investement, and expense factors. In this repect, it is similar to inderterminate premium whole life. However, interest-sensitive products also provide that the cash values may be greater than the guaranteed levels, if the company's underlying death, investment, and expense assumptions are more favorable than expected. |
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Term
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Definition
| Premanent life insurance with many of the same characteristics of traditional whole life insurance. The main difference, as explained above, is the manner in which the policy's values are invested. With this policy, the policy values are invested in the insurer's seperate accounts whichhouse common stock, bond, money-market, and other securities investment options. |
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