Glossary of Terms

Accidental Death Benefit Rider

An insurance policy that provides payment if the insuredís death is the result of an accident covered under rider definition.

Accidental Death Insurance

An insurance policy that provides payment if the insuredís death is the result of an accident covered under policy definition.

Beneficiary

The person or party who receives the proceeds from the policy when the insured dies.

Contract

An agreement between two or more parties enforceable by law.

Claimant

The person or party making a formal request for payment of benefits due under the terms of an insurance contract.

Death Benefit

The amount payable upon the death of the person whose life is insured.

Death Claim

A request for payment of the benefits provided by an insurance contract.

Face Amount

Represents a face value of the policy contract.

Individual Insurance

Insurance that is issued to insure the life or health of a named person or persons.

Insured

The person that is protected by insurance.

Lapse

Automatic termination of a policy because the premium was not paid by the end of the grace period.

Mode of Payment

Defines the timing of a premium payment (e.g. annually, semiannually, quarterly, or monthly).

Policy

A written document that contains the terms of the contractual agreement between an insurance company and policy owner.

Policy Owner

The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.

Premium

A periodic payment to the insurance company to keep the policy in force.

Term Insurance

Insurance that provides protection for a specific period of time.

Total Disability

A condition resulting from sickness or injury that does not allow a person to perform the duties of his/her occupation or of any occupation as specified in the insurance contract.

Waiver of Premium

Continuation of life insurance coverage without payment of premium due to total disability as specified in the insurance contract.