The net cost of a Life Insurance contract which is found by subtracting the cash value of the contract at the end of a given year from the premiums paid, less all dividends.

An organization serving a large proportion of the Life Insurance business by providing educational programs relating to administrative and technical procedures within the industry. It confers the designation of Fellow, Life Management Institute (FLMI) upon those who complete a prescribed course of study.

The face amounts of contracts still to be paid out to insureds.

A Life insurer who maintains the reserves required by the jurisdiction within which it operates.

A form of limited payment Life Insurance that provides protection for the whole of life, but with payment of premiums to stop at a particular age, thus paying up the policy. A common form would be Life Paid Up At Age 65.

A method for determining reserves on Life Insurance contracts, whereby no reserve is required for the first year of a contract’s life, with an appropriate adjustment in subsequent years’ reserves to make up the difference. This method of valuation makes it possible for an insured to have more funds available for the high first year expenses incurred in the writing of Life Insurance.

See Industrial Life Insurance.

A limited payment Life Insurance contract on which all required payments have been made. For instance, a 20-Pay Life policy would be fully paid after the insured has paid premiums for 20 years.

See Industrial Life Insurance.

The marketing of Life Insurance through general agents.