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.
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.
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.
Premium is increased at times specified in the policy, based on a predetermined attained age, or number of policy years in force.
See Multiple Indemnity.
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.
See Ordinary Life Policy.
A form of Life Insurance that is usually a combination of Whole Life and twice as much Term Insurance. The Term portion applies until a stated date. Such a policy might be used to provide maximum protection to an individual at an earlier age when the need for insurance is greater but the ability to pay is less.
The attainment of a benefit right by a participant, attributable to employer contributions, that is not contingent upon a participant’s continuation in specified employment. See also Contingent Vesting, Deferred Vesting, and Immediate Vesting.
See Impaired Risk.