Values

Used in Life Insurance terminology as a shortened term for non-forfeiture values. See Non-forfeiture Values.

Termination

The cessation of premium paying for a Whole Life or Endowment policy before the agreed upon time. This ends the coverage, and the insured receives one of the non-forfeiture values. The cessation of a policy that does not have or has not yet developed a cash value is termed a “lapse.”

Variable Contracts

Contracts such as variable annuities or variable life insurance which contain an element of risk for the investor, depending on the performance of the separate account backing the contract.

Statement of Policy Information

For Universal Life policies, this document is prepared at the end of each year, giving complete information on all transactions affecting the policy, such as premium paid, current death benefit, interest credited, loans outstanding, monthly charges, and cash surrender value.

Third Party Administrator (TPA)

A firm which provides administrative services for employers and other associations having group insurance policies. The TPA, in addition to being the liaison between the employer and the insurer, is also involved with certifying eligibility, preparing reports required by the government and processing claims. TPA’s are being used more and more with the increase in employer self-funded plans.

Variable Life Insurance

A form whose face value varies depending upon the value of the dollar or securities or other equity products at the time payment is due.

Step-rate Premium

Premium is increased at times specified in the policy, based on a predetermined attained age, or number of policy years in force.

Triple Indemnity

See Multiple Indemnity.

Variable Universal Life

A combination of the features of Variable Life Insurance and Universal Life Insurance under the same contract. Benefits are variable based on the value of equity investments, and premiums and benefits are adjustable at the option of the policyholder.

Straight Life Policy

See Ordinary Life Policy.