Convertible Term Life Insurance - ANSWER-This optional form of term life insurance lets the policyowner convert the policy to a whole life policy without
... [Show More] having to prove insurability.
Ordinary Life Insurance - ANSWER-This class of individual life insurance has many flexible options and features policies with face amounts greater than $25,000.
Currently Insured Status (Social Security) - ANSWER-This Social Security insured status makes workers eligible for death benefits only.
Waiver of Premium (WP) Rider (Life Insurance) - ANSWER-This whole life policy rider waives the need to pay premiums if the policyowner becomes totally disabled.
Indexed Whole Life - ANSWER-A form of whole life insurance that ties its death benefit and premiums to changes in a specified index, most commonly the consumer price index (CPI).
Decreasing Term Life Insurance - ANSWER-This form of term life features a death benefit that diminishes over time and premium that remains level for the term of the policy.
Family Income Life Policy and Family Maintenance Life Policy - ANSWER-These two types of specialized life insurance policies are similar in one respect: both provide some form of monthly income benefit in addition to the face amount death benefit.
Annuity - ANSWER-An insurance contract between a person and an insurer to distribute an accumulated sum of money over a certain period, including the person's lifetime.
Premium Receipt - ANSWER-Given to the applicant in return for the initial premium, this item provides interim coverage during underwriting. There are two basic types.
Limited Payment Whole Life Insurance - ANSWER-Any form of whole life insurance in which premiums are paid for some period other than the insured's entire life, either a set number of years or to a certain age.
Suicide Clause - ANSWER-This life insurance policy provision excludes coverage if the cause of the insured's death within the first two policy years is suicide.
Annuity Beneficiary - ANSWER-The person the annuity owner chooses to receive the annuity contract's values if either the owner or the annuitant dies before annuitization.
Fair Credit Reporting Act (FCRA) - ANSWER-This federal law sets forth procedures that credit reporting companies must follow to ensure confidentiality, accuracy of reporting, and proper use of credit information.
Transfer-for-Value Rule - ANSWER-This tax rule subjects a portion of a life policy's death benefit to income taxation if that policy had previously been sold to a different owner.
Net Premium and Gross Premium - ANSWER-The two stages of a life insurance premium calculation, the first of which includes only the mortality charge and interest credit, and the second of which is the actual premium charged to the policyowner.
Straight Life Annuity Income Option - ANSWER-An annuity payment option that provides guaranteed income for the life of a single annuitant, with payments ceasing upon the annuitant's death.
Nonqualified Retirement Plan - ANSWER-An employer-sponsored retirement plan that does not meet the requirements of ERISA and therefore does not qualify for favorable income tax treatment.
Insuring Clause - ANSWER-Located on the schedule of benefits page of the insurance policy, this policy provision defines the insurance agreement between the policyowner and the company.
Human Life Value Approach - ANSWER-An old method of determining life insurance needs based on the discounted value of a person's future income.
Whole Life Insurance - ANSWER-This oldest and most traditional form of permanent life insurance features more guarantees than any other form of permanent life insurance available today.
Bring-Back Rule - ANSWER-In estate planning, this rule requires life insurance policies transferred from the insured within 3 years before death to be returned to the decedent's estate for valuation purposes.
Roth IRA - ANSWER-This individual retirement plan is noted for "back-end" tax benefits that allow withdrawals to be made tax free.
Living Benefits (Life Insurance) - ANSWER-General term referring to uses for permanent life insurance while the insured is alive.
Rollover IRA - ANSWER-A form of IRA into which a participant's retirement plan funds are transferred after the participant leaves the company.
Variable Universal Life Insurance (VUL) - ANSWER-This flexible permanent life insurance combines the premium flexibility of universal life insurance and the investment opportunity of variable life insurance.
Universal Life Insurance (UL) - ANSWER-This most extreme of the flexible permanent life policies lets the policyowner change the premium amount without first notifying or gaining approval of the insurer.
Backdating - ANSWER-This term refers to putting a date on a life insurance application that is earlier than its actual date of completion in order to obtain a lower premium.
Group Insurance - ANSWER-A class of insurance featuring a single policy covering multiple people associated with a common employer, labor union, trade, or professional association.
Risk Classifications (underwriting) - ANSWER-Upon completion of underwriting, applicants are assigned one of these indicating their level of risk.
Term Life Riders - ANSWER-A variety of riders that add coverage for more than one person on a single whole life policy.
ERISA - ANSWER-The 1974 federal law that lays the foundation for employer retirement plan qualification.
Modified and Graded Premium Whole Life - ANSWER-Two similar forms of whole life insurance in which premiums start at a lower level than standard but rise in time to a higher level.
Participating Life Insurance - ANSWER-A category of life insurance, most commonly sold by mutual insurance companies, that features the distribution of policy dividends to policyowners.
Single Premium Whole Life (SPWL) - ANSWER-A type of whole life policy that becomes paid up with one premium payment at the time of application.
Cash Value Withdrawal - ANSWER-How a universal life policyowner can access the policy's cash value for living benefit purposes.
Insurable Interest - ANSWER-The financial interest a policyowner has in a person or property being insured, justifying the purchase of insurance.
Accelerated Benefit Rider - ANSWER-This rider permits an insured suffering a terminal illness to access a portion of the life policy's death benefit while alive. [Show Less]