Lapse -
This word is used to describe an insurance policy that has been cancelled by the insurance company for nonpayment of premium. |
Level Premium -
This is an insurance premium that does not increase during the term of the policy. Level premiums apply to Whole Life
policies and Level Term Policies. Level Term Policies renewed at the end of the term will see an increase in premium for
the new term. |
Level Term Insurance -
Term Life Insurance in which the face amount of the policy does not change during the term. |
Life Expectancy -
For insurance purposes this is the average number of years remaining in the life of a particular age group of people. |
Life Income -
A pension, annuity or life insurance payment that lasts for the lifetime of the recipient. |
Life Insurance Trust -
This is a legal trust designed for the purpose of distributing the proceeds of a life insurance policy. It is also used
in some instances to remove the proceeds of a life insurance policy from an insured's estate to avoid Estate Taxes. You
should know, however, that the IRS says that only 2% of upper income people are subject to Estate Tax. |
Life Underwriter -
Your insurance agent. |
Living Benefits -
This refers to benefits of a life insurance policy that the policyowner can exercise prior to the insured's death. These
include policy loans and collateral assignments. Many policies also allow a terminally ill insured to withdraw cash. |
Living Benefits Rider -
This addition to a life insurance policy allows the policyowner to withdraw a specified portion of insurance proceeds prior
to the insured's death, if certain conditions are met. |
Lump Sum Payment -
This is a payment option for many pension, annuity or life insurance policies. The beneficiary receives one check of
the total proceeds due. |
Maturity Date -
The date on which a Cash Value Life Insurance policy endows for its full face value. Whole life policies usually endow
on the insured's 100th birthday. See Endow. |
Net Cash Value -
This is the amount of a Cash Value Life Insurance policy that is payable to the policyowner on a given date if the owner
chooses to surrender the policy. Any policy loans, interest due and premiums due would be deducted from the Cash Value
amount to yield the Net Cash Value. |
Nonforfeiture Values -
This is the actual cash available at a point in time in a Cash Value Life Insurance policy. The policyowner may choose to
stop paying premiums and exercise one of three available options. You can surrender the policy for full cash value.
You can use the cash to purchase a paid-up policy with a smaller face value. Or, you can use it to purchase extended
term insurance at the original face value of the policy for as long as the amount of cash will pay the premium. |
