A Life Insurance policy paid for in one single premium in advance, rather than in annual premiums over a period of time.

A contract of Life or Health Insurance underwritten on the basis of an insured’s statement of his health with no medical examination required.

Life and Health Insurance that handles the business continuity problems peculiar to a sole proprietorship. Such insurance, for instance, could be used to enable the heirs of the sole proprietor to bring the value of the business back to the level where it was prior to the death of the owner.

The number of deaths in a group of people, usually expressed as deaths per thousand. It can be the rate for the total population, called the crude mortality rate, or it can be refined by factors such as age groupings or causes of deaths. Same as Death Rate.

An underwriting method of determining the extra rate to be charged for a substandard insured. “Standard” is rated 100. Various impairments are assigned various numerical values. The sum of 100 plus the values of the ratings of the impairments indicates the table to use in determining the rate of the policy.

A clause in most Life Insurance policies which prevents the creditors of a beneficiary from claiming any of the benefits payable to him before he actually receives the money. The purpose of this clause is to keep those to whom he is in debt from taking legal action to require the insurer to pay the proceeds directly to them.

The remainder, if any, after subtracting experienced mortality from expected mortality.

A form of annuity contract that is entered into before a selected retirement age, with the consideration paid in installments until that age is reached. It is a form of deferred annuity.

An arrangement under which an employer pays that part of the premium that equals the annual increase in the cash value of a policy, while the employee pays the rest. Under assignment, upon the death of the employee the employer recovers the total of its payments from the proceeds of the policy, with the remainder going to the employee’s beneficiary.

A table showing the incidence of death at specified ages. It shows the number of persons in each age group that die, expressed in terms of deaths per thousand, and based on the deaths in a population of a million persons.