A group policy provision which will pay the life benefit when (1) the insured is totally and continuously disabled at the time the policyholder stops paying premium, until the insured’s death; and (2) if the insured dies within one year of the date the premium payments stopped, or prior to age 65.

Contracts issued by an insurer and delivered to an insured but not yet paid for. See also Examined Business, Paid Business and Written Business.

The employee’s evidence of participation in a group insurance plan, consisting of a brief summary of plan benefits. The employee is provided with a certificate of insurance rather than the actual insurance policy.

A provision in most policies which provides the option of continuing the existing amount of insurance as Term Insurance for as long a period of time as the contract’s cash value will purchase. This is one of the non-forfeiture options available to the insured in case a premium is not paid within the grace period. See also Non-forfeiture Values.

The actual placing of a Life Insurance policy in the hands of an insured.

A split dollar plan in which the employer owns and controls a life policy on the life of an employee. The employee’s rights to certain policy benefits are protected by an employer endorsement.

Mortality or morbidity tables showing the extra premium for certain impaired health conditions. Usually this premium is shown as a percentage of the standard premium. A form of substandard rating.

This is the more exact terminology for what is often called a binding receipt. It provides that if a premium accompanies an application, the coverage will be in force from the date of application or medical examination, if any, whichever is later, provided the insurer would have issued the coverage on the basis of the facts revealed on the application, medical examination and other usual sources of underwriting information. A Life and Health Insurance policy without a conditional binding receipt is not effective until it is delivered to the insured and the premium is paid.

The amount of pension payable for each year of future participation in the pension plan.

The person whose life measures the duration of a trust, gift, estate, or insurance contract. Thus, in Life and Health Insurance it is the person on whose life or health the policy is written, commonly called the insured, policyholder, or policy owner.