Insurance issued to an individual employee whose employer agrees to deduct the premiums from his paychecks and submit them to the insurer.

The pure mortality cost of a Life Insurance policy from its inception to its maturity date, divided by the number of years the policy is to be in force. See also Level Premium Insurance.

A whole life policy which features a fixed, level premium and a minimum guaranteed face amount. The performance of the policy is dependent on the separate account.

The reserve needed by an insurer to cover net level policies which are in their later years. Loosely speaking, the level premium system of paying for a long-term Life or Health policy involves overpayment in the early years and underpayment in the later years.

The second person named to receive benefits upon the death of an insured if the first-named beneficiary is not alive or does not collect all the benefits before his or her own death. See also Contingent Beneficiary.

(1) See the third definition of Net Premium for the definition applicable to participating Life Insurance policies. (2) In a non-participating policy, the book rate.

Plan of insurance where an employer, which has fairly predictable claim costs, pays the claims rather than an insurance company. See also Administrative Services Only.

A plan or program of insurance, usually group, for which the employer pays the entire premium and the employee contributes no part of the premium.

The various methods for the payment of the proceeds or values of a Life Insurance policy that may be selected in lieu of a lump sum.

Those values in a Life Insurance policy that, by law, the policy owner cannot forfeit even if he ceases to pay the premiums. These benefits are the cash surrender value, the loan value, the paid-up insurance value, and the extended term insurance value. The policy owner may choose one of these non-forfeiture options, but even if he fails to do so, the one specified in the contract for such a case automatically goes into effect.