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.

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.”

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.

See Third Party Administrator.

See Multiple Indemnity.

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.

A supplemental agreement, attached to and made a part of a Life Insurance policy, setting forth the manner in which the proceeds are to be paid, in lieu of having them paid in a lump sum or under one of the other installment settlement options in the policy itself. (2) An agreement or instrument under which a corpus (fund/property) is given over to the management of the trustee named in a trust instrument for the benefit of the beneficiaries of the trust. (3) A written agreement between two parties – the employer and the trustee- setting forth the provisions of a pension plan.