Home | About | Compare & Save | Insurance Company Ratings | Understanding Insurance | Articles | Links | Contact | Video Life insurance...because life is unpredictable. Auto Insurance Life Insurance Importance of Life Insurance Time Is Money Life Insurance For The Self Employed Life Insurance Needs Analysis Glossary of Life Insurance Terms Health Insurance Glosssary of Life Insurance Terms A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Definitions written so you can actually understand them. Browse alphabetically, or search for a word or term by typing it into the search field located in the top navigation by the GO button (above right). Lapse Occurs when premiums on a life insurance policy are not paid as they come due, resulting in the termination of that policy. Back to Top Late-Remittance Offer Instituted to encourage reinstatement of lapsed insurance policies, a late-remittance offer gives carriers the leeway to accept an overdue premium payment after the grace period has already ended. It further allows the policy to be reinstated without requiring the policyholder to complete a reinstatement application or submit evidence of insurability. Also called a late-payment offer. Back to Top Level Premiums Premiums that remain the same each year that the life insurance policy is in force. Back to Top Level Premium Whole Life Insurance A whole life insurance policy with premium payments that are fixed and equal for the duration of the premium payment period. Back to Top Level Term Insurance A term life insurance policy that provides a death benefit that remains the same during the policy period. Premiums for level term insurance policies usually remain the same throughout each term of coverage. Back to Top Liabilities The debts and future obligations carried on a company's books. For a life insurance company, liabilities include amounts owed to creditors and the actual and expected claims of its policyholders and their beneficiaries. Back to Top Life Annuity A series of payments that are made at regular intervals over the duration of the life of the designated annuitant. Back to Top Life Annuity With Period Certain A life annuity contract with a specific payout period (usually 5, 10 or 20 years). A life annuity with period certain policy commits to payouts over the designated person even if the annuitant dies before the end of the period. Should the annuitant die, payments are then directed to the contingent payee. Back to Top Life Income Option A life insurance settlement option that pays the beneficiary a series of equal payments for as long as the beneficiary lives. Back to Top Life Income Option With Period Certain A life insurance settlement option that pays the beneficiary a series of equal payments over the course of the beneficiary’s life. If, however, that beneficiary dies within a designated guaranteed payment period – for example the first 10 years after the policyholder’s death – payments will continue to the end of the guaranteed payment period to a recipient designated by the original beneficiary. At the end of the guaranteed payment period, all payments stop. Back to Top Life Income Option With Refund Also referred to as a refund life income option, this life income settlement option guarantees that if the beneficiary dies before the total amount paid equals the proceeds of the policy, then the insurer will pay the difference to a contingent payee. Also call a refund life income option. See also cash refund option, installment refund option, and settlement options. Back to Top Life Insurance An insurance policy that provides protection against the economic loss caused by the death of the person insured. Back to Top Limited-Payment Whole Life Insurance Whole life insurance with premium payments that do not continue for the entire lifetime of the insured. Most limited-payment policies specify wither the number of years during which premiums are payable, or an age after which premiums are no longer payable. One unusual type of limited payment insurance would be the single-premium whole life insurance, in which only one premium payment is made. Back to Top Living Benefit Rider A rider on a life insurance policy that allows all or part of the benefits to be paid to the insured prior to the insured’s death in a given set of cases. This provision type is often used to help pay an insured’s health care costs over the course of a terminal illness. Back to Top Living Trusts A trust set up while a person is alive and which remains under the control of that person until death. Back to Top Loading Designed to cover the operating expenses of the insurance company, loading is a charge added to the net premium. The resulting gross premium is what is actually paid by the policyholder. Back to Top Long-Form Reinstatement Application A reinstatement application policyholders are sometimes required to fill out in order to have their lapsed policies reinstated. This particular form is similar to a policy application in that it requests information addressing the long-term health history of the insured. Back to Top   Life insurance...because life is unpredictable. 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