Glossary

Indexed universal life

A universal life policy in which the savings account earns interest according to the performance of a specified index or…

Read More

Involuntary Surrender

this occurs when the Accumulated Cash Value of a policy falls below the amount of the Surrender Charge that would…

Read More

Lapse Rate

for any particular type of policy, the Lapse Rate is the percentage of those policies that do not remain in…

Read More

Ledger Pages

this term is used to describe those pages of a policy illustration that show Cash Values; ledger pages typically project…

Read More

Level Death Benefit

a Death Benefit that does not change over the life of the policy.

Read More

Medical Underwriting

“Underwriting” is what insurance companies do when they decide whether to insure someone and how much to charge based on…

Read More

Mutual Company

a mutual life insurance company is a life insurance company that is owned by its policyholders, not by shareholders. Many…

Read More

NAIC

this is the National Association of Insurance Commissioners, which is a group of state insurance commissioner that, among other things,…

Read More

Permanent Life

A “permanent” policy is one that has no specified term and obligates the insurer to continue insuring the life of…

Read More

Persistency Rate

for any particular type of policy, the Persistency Rate is the percentage of those policies that remain in force until…

Read More