The eLife® Process - Easy, Efficient, Effective - No Medical Exam - Instant Issue Term Life Insurance*
Glossary
A transfer of ownership of a Life Insurance policy from one person to another that cannot be reversed.
A provision that allows the policyholder to receive all or part of their benefits before death. Benefits are typically paid for terminal illness or need for long-term care.
An option allowing policy dividends to mature a policy as an endowment, or to shorten the term of an endowment.
An insurance policy that provides payment in the event the insured accidentally severs a limb above the wrist or ankle joints; irreversibly loses eyesight; or dies as the result of an accident.
A Life Insurance policy provision that provides payment of an additional cash benefit in case the insured dies as the result of an accident.
The right of an insurer to change the premium rate at the time of policy renewal.
The amount of money deducted from an insurance policy to pay the costs of administering the policy.
An addition to a policy that modifies certain benefits of the policy.
A contract issued by an insurance company where guaranteed or variable periodic payments begin at a specified time.
The annual return of an insurance policy’s effective date. Some policies have options tied to this date.
An income purchased by the payment of annual premiums for a specified period of time.
Term Life Insurance that may be renewed annually without evidence of insurability until some stated age.
A signed document that requests Life Insurance based upon personal information about a prospective policyholder – such as date of birth and age.
An item of monetary value owned usually by a corporation or individual which can be sold and converted into cash.
Transferring the ownership of rights and benefits of a Life Insurance policy from one person to another.
The age an insured has reached on a given date and is used to determine your Life Insurance premium.
A provision authorizing the insurance company to take money from the policyholder’s loan value to pay any premiums in the event the policyholder is unable to make a payment.
Back to Top
A procedure that changes the effective date of a policy earlier than the application date, typically to reduce the premium of a customer. Most states often limit the date to six months time.
The person or party named by the owner of a Life Insurance policy who is entitled to the benefits upon the death of the policy holder.
A temporary insurance policy that is given to an insurance applicant during the time the policy paperwork is being completed and expires when the Life Insurance policy is fully written.
A period when a surviving spouse no longer receives survivor benefits and before she or he is eligible for his or her own retirement benefits.
A licensed insurance professional representing the policyholder, not a particular company.
Back to Top
Money that is paid to the insured upon settlement of a covered claim.
An annuity contract that specifies that if the policy holder dies and installments paid to him have not totaled the amount of the premium paid for the annuity, then the difference will be paid to the beneficiary in a lump sum.
The equity that accumulates in your Life Insurance policy while the policy is active and the policy holder can borrow.
A document that provides evidence of coverage received by the policy holder from an insurance provider.
A fraudulent practice by insurance agents to increase commissions by persuading their customers to replace existing Life Insurance polices with new ones.
Notification to an insurance company that payment of an amount is due under the terms of the policy.
A commonly-used phrase for policies that pay the deceased’s final expenses.
Temporarily transferring some benefits of a Life Insurance policy to another person, typically as collateral for a loan.
Combining life Insurance contracts with a side fund or auxiliary fund for the purpose of increasing the amount of money available for a pension or annuity at some future date.
A mishap in which two or more persons are injured.
A clause in a Life Insurance policy that provides for how the insurer will distribute the proceeds of the policy in the event the policy holder and beneficiary appear to die simultaneously with no clear evidence of who died first.
The right of a beneficiary to receive a lump sum of unpaid payments in an installment plan settlement.
A provision setting forth the conditions where the insurer may contest or void the policy. After that time has lapsed, normally two years, the policy cannot be contested.
A person named beneficiary in the event the primary beneficiary dies before the policy holder.
A period of time when the owner of a Term Life Insurance Policy can covert it to another Life Insurance policy without needing evidence of insurability.
Grants a policy owner the opportunity to have a new policy issued that will continue insurance coverage, typically converting to an individual policy when a policy holder leaves a group insurance plan.
Term Life Insurance that can be changed by the policy owner for a Permanent Life Insurance policy without evidence of insurability.
Permits the policy holder to purchase increasing Term Insurance coverage, coinciding with the estimated cost of living. This amount can be automatically increased without evidence of insurability.
A term used by insurance companies to discuss the dollar amounts of insurance purchased.
Back to Top
The amount of money paid to a beneficiary when a person insured under a Life Insurance policy dies.
When a Life Insurance company rejects a Life Insurance application.
A Term Life insurance policy in which the face value of the term slowly decrease – usually used as a form of mortgage insurance.
The actual giving a Life Insurance policy to the insured individual.
A group Life Insurance benefit that provides death protection to eligible dependents of a covered employee.
A feature of some policies for the waiver of premium if the policy holder becomes permanently and totally disabled.
A non-guaranteed partial return of an insurance premium that is based on the insurer’s favorable operating experience.
A payment of twice the basic benefit in the event of loss, resulting from specified causes or under specified circumstances.
The date on which a premium payment is due.
Back to Top
The date on which the Life Insurance policy begins.
Money set aside used to pay for expenses not incorporated into budget, such as living expenses during a period of unemployment. It is recommended to have approximately three to six months of living expenses in your emergency fund.
An addition to a policy that changes its benefits.
A form of Life Insurance where the face amount is payable to the insured at the end of the contract period or to a beneficiary if the insured dies before that length of time.
A cash value policy payable to the policy holder on the maturity date if living or to a beneficiary at the time of the insured’s death.
The method of preparation for the transfer of assets at one's death.
The method of preparation for the transfer of assets at one's death.
A tax imposed by a state or the federal government on the transfer of property from deceased individuals to their heirs.
Proof of a personal’s physical condition, occupation, etc. affecting acceptance of a Life Insurance application. These are typically answers to health and lifestyle related questions, medical exam results, medical records or other documentation that allow the insurance company to evaluate whether you are an acceptable risk.
Specified conditions in an insurance policy that denies payment in the case of certain events.
An individual who is tasked with the settling of an estate for the deceased. The individual will gather the assets; pay the taxes; and distribute the estate in accordance with the will.
The termination of a Term Life Insurance policy at the end of its period of coverage.
Permits for the continuation of the original amount of Term Life Insurance with no additional premium payments during a limited period of time.
Back to Top
The named dollar amount of a Life Insurance policy in the event of death. Typically, the face amount is the same as the death benefit; however it may vary over time if the policy holder borrows against the policy’s cash value.
A Life Insurance policy that provides insurance on all or several family members under one contract.
Expenses incurred at the time of a person’s death that must be paid before concluding the probate process. These include: estate taxes, medical bills, funeral expenses, legal fees, probate costs, outstanding debts, appraisal fees, etc.
The payment of an insurance premium with funds borrowed from another source.
An insurance policy where the death benefit is paid to the surviving insured upon the death of one of the insured. The benefit runs out once paid, but surviving insured can purchase a policy of same amount without providing evidence of insurability.
A death benefit where the dollar amount does not vary.
A settlement option under which fixed, periodic benefits payments are made until the principal and interest are exhausted.
A Life Insurance policy where the policy holder can vary the time or amounts of premium payments.
A period up to 20 days where policy owners can examine their policies at no obligation. If policy owners aren’t satisfied with results, they can return it to the company for a full refund of the initial premium.
Costs incurred for a funeral and burial. These typically include a casket, grave plot, vault, and headstone.
Back to Top
A period of time, usually 30 or 31 days, after the due date of a premium during which the policy remains in force without a penalty.
A type of Life Insurance provided through an individual’s job, association or other organization under which members of the group receive insurance.
An option that allows the policy holder to buy additional Life Insurance at specific times in the future without having to answer questions about his or her health.
A form of renewable Term Life Insurance that remains in effect as long as premiums are paid on time.
Back to Top
When an insurance company cannot contest any terms and benefits of a policy due to misstatement or misrepresentation.
A clause in an insurance policy stating that if a policy has been in effect for a given length of time (typically two years), the insurer cannot contest the statements contained in the application. If policy holders lied as to the condition of their health at the time the policy was taken out, those lies can’t be used to contest payment under the policy if death occurred after the time limit stated in the incontestable clause.
A type of Life Insurance in which the premiums increase over time, usually with an annual policy.
A type of Term Life Insurance in which the death benefit increases periodically during the policy’s term.
A premium for a Life Insurance policy that may change over the policy’s life - but not higher than the maximum amount as stated in the policy.
Payments of the proceeds of the policy in pieces instead of a lump sum.
An individual is insurable if he or she is able to obtain life insurance under the insurance company's underwriting criteria. Insurability is usually based upon the individual's age, health, occupation and lifestyle.
Requirement of insurance contracts that loss must be sustained by the applicant upon the death of another and it must be sufficient to warrant compensation.
A formal printed document that serves as a contract between an insurer and an insured individual, providing to pay the loss amount specified in the contract.
The person who has purchased a Life Insurance policy.
A company, typically an insurance company, which provides insurance coverage.
The portion of an insurance policy which describes the degree of risk the insurer is willing to assume.
A beneficiary that cannot be changed without that beneficiary's consent.
Back to Top
Two or more individuals that share in any death benefits payable under a Life Insurance policy. If there is no beneficiary named on the policy, the benefits typically will pass directly to the estate of the deceased owner.
A life insurance policy for a child.
Back to Top
Termination of a policy when the policy holder fails to make the premium payment within the grace period, making the policy null and void.
A type of Life Insurance where the premiums remain the same throughout the term of a policy.
Term Life Insurance coverage in which the face value and premiums remain constant from the date purchased until the policy expires.
A financial obligation, debt or claim against a person or institution.
An individual licensed by your state who sells you a Life Insurance policy. This individual is trained to assist you in determining your insurance needs.
The average number of years remaining for a person of a given age applying for an insurance policy.
A purchased policy that pays a death benefit to the beneficiaries when the insured individual dies.
A type of Life Insurance that provides protection with premiums paid for a set number of years.
Policies paid only upon the occurrence of certain incidents, such as cancer.
A loan made by a Life Insurance company from its general funds to a policy owner on the security of the cash value of a policy. The borrowed amount is deducted from the death benefit until it has been repaid.
A Life Insurance policy featuring a high premium with a small death benefit.
A settlement option where the beneficiary receives the entire proceeds of a policy at once rather than in installments.
Back to Top
The date on which the face amount of a policy becomes payable.
The time at which the insurance contract is paid to the policy holder, if still alive.
A requirement for some insurance policies in which the applicant must undergo a physical exam and give a blood and urine sample in order to determine their health before issuing a policy.
Charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral expenses.
The minimum fixed interest rate an insurance company pays on the cash value of a universal Life Insurance policy.
In which the applicant and/or policy holder does not reveal any or all of their current and former health conditions; this can typically result in the policy becoming null and void.
Only those persons named in a Life Insurance policy can make any changes to the policy.
A charge made each month to cover administrative expenses with universal Life Insurance.
The charges a company makes to the policy to cover the policy’s share of the cost of death claims, based on the mortality table.
A statistical table used by insurance professionals showing the incidence of death at specified ages.
A combination of Term and Whole Life Insurance that pays some multiple of the face during the period of the Term policy, becoming a regular Whole Life policy after the Term policy expires.
Back to Top
The total assets minus total liabilities of an individual or company.
A contract of Life Insurance underwritten on the basis of an insured’s health statements with no medical examination required.
A Life Insurance policy in which the insurance company does not distribute any of its surpluses to its policy holders.
Back to Top
A condition in an occupation that increases the risk of accident, sickness, or death.
The age the policy holder was when the Life Insurance policy was purchased.
All rights, benefits and privileges under Life Insurance policies are controlled by their owners, who may or may not be the insured individual.
Back to Top
Insurance that will remain in force with no need to pay additional premiums.
A Life Insurance policy that is eligible for payment of dividends by the insurer.
The specific groups named in a Life Insurance policy. Most commonly referred are the insurer, the insured and any beneficiaries.
A stipulation in a Life Insurance policy that allows policy holders to change their coverage as needed.
The date the policy goes into effect.
A partial premium refund on a participating Life Insurance policy.
The individual who owns a Life Insurance policy. This is typically the insured individual, however it may be a relative of the insured or a corporation.
A loan taken from the cash value account of a Permanent Life Insurance policy.
A printed document issued to the policy holder by the insurance company stating the terms of the insurance contract.
The authority given to a person to act on one’s behalf in most required activities.
An amount deducted from each premium payment that reduces the amount credited to a policy.
The right of a policy holder to vary the amount of premium paid each month towards a Life Insurance policy.
Money the owner of an insurance policy pays to an insurance company in order to obtain insurance protection and/or receive benefits.
The first person named in a policy to receive the policy’s benefits.
The amount of money an insurance company is obligated to pay for the settlement of a Life Insurance policy.
A condition in an insurance policy which explain the conditions, benefits, and other features of the insurance policy.
Back to Top
A Life Insurance policy issued at a higher premium to cover a person classified as a greater-than-average risk, usually due to impaired health or a hazardous occupation.
A lapsed policy can be restored with evidence of insurability and past-due premium payments are made – typically after the grace period has ended.
A Term Life Insurance that can be renewed at the end of its term by the policy holder without evidence of insurability; rates generally increase at each renewal as the age of the insured increases, creating a higher risk of payout.
A new policy written to take the place of one currently in force.
The conversion of a Term Life Insurance policy to cash value form, effective from the original issue of the Term Life policy.
A type of beneficiary in a Life Insurance policy where the owner reserves the right to revoke or change the beneficiary.
A written addition to the original Life Insurance policy that amends benefits payable under the policy.
The likelihood of injury, damage, loss or death while insured.
Back to Top
A second person named to receive benefits upon death of an insured, usually if the primary beneficiary has died.
A Life Insurance policy paid for in one single premium, rather than annual premiums during a period of time.
A method of purchasing Life Insurance, with an employer and employee jointly purchasing the policy, pay premiums and share in the policy's benefits.
According to a company’s underwriting standards, a person who is entitled to insurance without extra fees or restrictions.
According to a company’s underwriting standards, a person who is considered an under-age risk because of physical condition, family or personal history of disease, residence, or occupation.
Fees insurance companies charge against the cash value of a Life Insurance policy in the event the owner were to surrender the policy before its maturity date.
Terminating or canceling a policy before its maturity date.
Back to Top
A Life Insurance policy that does not build up cash value, and is purchased in durations ranging from five to thirty years. The policies are renewable with increasing premiums as the insured gets older.
A policy owner who is not the prospective insured, such as a relative or company.
Back to Top
A person who works for an insurance company who decides if an applicant is an acceptable risk and what premium the individual will pay.
A law that states that if the policy holder and the primary beneficiary die under conditions in which it is impossible to determine which died first, it is assumed that the insured will have survived the beneficiary.
An individual who is unable to obtain a Life Insurance policy due to the high risk he or she represents to the insurance company, usually because of life-threatening disease.
Back to Top
A provision included in most Life Insurance policies exempting the insured from paying premiums in the event the insured been disabled for a specified period of time, typically six months.
A legally enforceable document allowing an individual to direct the distribution of his/her property after death.
Back to Top
|
|
|