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An
amount deducted, usually monthly, from an insurance policy.
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The transfer of all or part of a policy owner's legal title
and rights to a policy to another person. It is possible to
change this type of transfer at a later date. Under an "irrevocable
assignment," you transfer all of your rights to a third
party and can never change this agreement.
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The person, persons, or entity designated to receive the
death benefits from a life insurance policy or annuity contract.
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Amount paid to the beneficiary upon the death of the insured.
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Information an insurance company uses to decide whether
to insure you and at what price. To qualify you for a particular
policy at a particular price, companies have the right to
ask you for information about your health and lifestyle.
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The initial amount of death benefit provided by the policy
as shown on the face page of the contract. The actual death
benefit may be higher or lower depending on the options selected,
outstanding policy loans, or premium owed.
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The time during which a policy remains in force after the
premium is due but not paid.
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A provision that places a time limit (up to two years) on
a company's right to deny payment of a claim because of suicide
or a material misrepresentation on your application.
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Person on whose life a company writes an insurance policy.
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A significant misstatement in an application form. If a
company had access to the correct information at the time
of application, the company might not have agreed to accept
the application.
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The person or party who owns an insurance policy. This person
may be the insured, the beneficiary, or another person. The
policy owner usually pays the premium and is the only person
who may make changes to a policy.
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An amount deducted from each premium payment, which reduces
the amount credited to the policy.
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A policy issued at a higher premium to cover a person classified
as a greater-than-average risk, usually because of impaired
health or a dangerous occupation or hobby.
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Written agreement attached to the policy expanding or limiting
the benefits otherwise payable under the policy.
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Charges an insurance company may deduct if you cash in-or
surrender-your life insurance policy or annuity. Companies
also deduct these charges if you borrow money on your policy
or your policy lapses for nonpayment.
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The person who reviews an application for insurance and
decides if the applicant is acceptable and at what premium
rate.
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A type of whole life policy in which the death benefit and
the cash value fluctuate according to the investment performance
of a separate account fund that the policyholder selects.
Administrative expense
