To give up a Whole Life policy. The insurer pays the insured the cash value which the policy has built up if it is surrendered.

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.

See Cash Surrender Value.

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.

Funds available to pay an annuitant who survives longer than statistically expected, from premiums paid by annuitants who died before they had collected amounts equal to their contributions.

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 Third Party Administrator.

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.

The type of Life Insurance policy that provides protection only for a specified period of time. A common policy period would be one year, five years, 10 years, or until the insured reaches age 65 or 70. It does not build up any of the non-forfeiture values associated with Whole Life policies. Contrast with Whole Life Insurance.

A provision of a Life Insurance policy which continues the coverage without further premium payments if the insured becomes totally disabled.