Glossary

Abandonment

a policy owner abandons a life insurance policy by declining to pay more premiums into the policy, which eventually lapses.

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Accumulated Cash Value

the amount of money that is held in the savings account feature of a life insurance policy (other than a…

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Cash Value Life Insurance Policy

A life insurance policy with a savings account component, such as a Whole Life or Universal Life policy.Cash Value and…

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Cost Basis

this is the total amount of premiums that the policy owner has paid into a Cash Value Life Insurance Policy.…

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Cost of Insurance Charge

a fee that an insurer will deduct (usually monthly) from the Cash Value of a life insurance policy that reflects…

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Crediting Rate

the rate used in calculating what interest is added to the Cash Value of a Traditional or Indexed Universal Life…

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Current Scale of Rates and Charges

this refers to a list of charges and cost of insurance rates that an insurance company has set and that…

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Death Benefit

the amount of money that the insurance company must pay if the insured dies while the policy is in force,…

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Death Protection

the feature of a life insurance policy that provides money if the insured person dies while the policy is in…

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Flexible Premium Life Insurance Policy

a policy that allows the insured to determine what premium to pay. Most universal life policies are flexible-premium policies. Most…

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