Ordinary Insurance, the premiums for which are collected at the door monthly in the same fashion as Industrial policies.

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.

See Experienced Mortality.

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

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.

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

A Cash Value Life Insurance policy having a first-year loan value that is available to borrow against immediately upon payment of the first-year premium. This is not the case with most Life Insurance policies, the main reason being high first-year expenses.

A method of settlement whereby the beneficiary receives the entire proceeds of a policy at once, rather than in installments.

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.