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

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 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.

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.

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.

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

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.

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.

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 method of purchasing life insurance whereby the employer and employee jointly purchase the policy, pay premiums and share in the policy’s benefits.

A combination of Installment Annuity and Term Insurance under which the amount of annuity consideration (premium) paid determines the amount of one-year renewable Term Insurance an annuitant can purchase and place on the life of anyone designated.

A risk that is on par with those on which the rate has been based in the areas of health, physical condition, and morals. An average risk, not subject to rate loadings or restrictions because of poor health.

For Universal Life policies, this document is prepared at the end of each year, giving complete information on all transactions affecting the policy, such as premium paid, current death benefit, interest credited, loans outstanding, monthly charges, and cash surrender value.

Premium is increased at times specified in the policy, based on a predetermined attained age, or number of policy years in force.

See Ordinary Life Policy.

See Impaired Risk.

A rider usually relating to the method of settlement of the proceeds of a Life Insurance policy.

To give up a Whole Life policy. The insurer pays the insured the cash value which the policy has built up if it is surrendered.

See Cash Surrender Value.

Funds available to pay an annuitant who survives longer than statistically expected, from premiums paid by annuitants who died before they had collected amounts equal to their contributions.