Accelerated Death Benefit
An optional provision in a life insurance policy that allows a specified percentage of the death benefit to be paid prior to the insured’s death, if a doctor certifies that the insured is terminally ill. (Typically with less than 12 months to live).
Accidental Death Benefit
A benefit from a life insurance policy that is paid when an insured’s death is the direct result of an accident and has occurred within a certain period of time following the accident. The accidental Death Benefit feature is a rider or “add on” to the standard contract.
The cash accumulation component of an annuity, universal life insurance policy. The accumulation value reflects premiums received, withdrawals made, expenses charged, cost of insurance deducted and interest credited.
Age at Issue
The insured’s age at the time coverage takes effect. Insurance contracts typically define issue age as either the age at the insured’s last birthday or nearest birthday.
An authorized representative of an insurance company who solicits and services insurance contracts primarily for that company.
The individual whose lifetime is used to calculate the pay period of a life annuity.
To select a settlement option beginning periodic payments from an annuity contract.
A contract issued by an insurance company where guaranteed or variable periodic payments begin at a specified time.
Annuity Starting Date
The date when an annuity contract begins to make periodic benefit payments; the beginning of the payout period.
A written form provided by an insurance company that is typically completed by the insurer’s agent and, in the case of most life insurance policies, also by its medical examiner. The form provides information about the physical condition, occupation and avocation of the proposed insured. The policy application is signed by the applicant (typically, but not always, the insured) and becomes a part of the information an insurance company considers when deciding whether or not, and on what terms and conditions, a policy should be issued.
The person or party who receives a transferred right when a life insurance policy is assigned. See Assignment.
The act of transferring all or part of one’s rights and benefits in a life insurance policy or annuity contract from an assignor (typically the policy owner) to an assignee.
The insured’s age on the policy date plus the number of full years since the policy date.
Automatic Increase Rider
An optional policy in a permanent life contract that provides scheduled increases in face amount based on a designated percentage, beginning in a designated policy year. This option must be applied for at the time of issue of the base policy. You may be charged an additional premium.
Automatic Premium Loan Provision
If invoked, an option that allows the insurer to automatically borrow money from a policy’s cash or accumulation value to pay any premium in default at the end of a grace period in order to keep a policy from lapsing.
Automatic Premium Payment
If operative, an option that allows the insurer to automatically withdraw money from a policy’s accumulation value to pay a due premium. The option is available only for certain Excess Interest Whole Life plans, and is limited to the excess values only. Excess values are those in excess of the guaranteed cash values.