|
| |
 |
| |
|
|
| |
|
|
| |
| An annuity providing for payment to begin immediately. |
| Existing insurance policies for which the premiums are being paid or for which premiums have been fully paid. |
| Various rights that may be exercised under the policy contract by the policy owner. Some of the incidents of ownership may
include rights: (1) to cash-in the policy, (2) to receive a loan on the cash value of the policy, and (3) to change the beneficiary designation. |
| A mutual fund, closed end fund, or ETF that has generating income, as the primary investment objective. Income can be derived
from various sources, including interest, dividends, and capital gains. |
| Annual tax levied on all personal and corporate income by state and federal government authorities. |
| Life policies provide that, except for non-payment of premiums and certain other circumstances, the policy shall be
incontestable after the policy has been in force for two years during the lifetime of the insured. |
| Compensation to the victim of a loss, in whole or in part, by payment, repair, or replacement. |
| Legal principle that specifies an insured should not collect more than the actual cash value of a loss but should be restored
to approximately the same financial position as existed before the loss. |
| Claims adjustor who offers his or her services to insurance companies and is compensated by a fee. |
| An independent business person who usually represents two or more insurance companies in a sales and service capacity and who
is paid on a commission basis. |
| A statistical measure used to track the aggregate performance of stock, bond, and commodities markets. Widely followed
indexes include those developed and managed by Standard & Poor's, Russell, and Dow Jones. |
| A mutual fund or ETF that seeks to match the exact performance of a specific market or benchmark index. Index funds are
sometimes referred to as passive funds, and are popular for their tax efficiency and low fees. Popular index funds include those that track the S&P,
Russell, and Dow Jones indices. |
| Investment strategy that seeks to match the exact performance of a specific market or benchmark index. |
| A retirement plan that allows individuals to contribute and grow money in tax-deferred account. |
| A retirement savings plan which allows individuals to contribute toward an account on a tax-deferred basis. The contributions
and earnings are taxable as income only when withdrawn or paid out after retirement. |
| Life insurance issued in small amounts, usually less than $1,000, with premiums payable on a weekly or monthly basis. The
premiums are generally collected at the home by an agent of the company. Sometimes referred to as debit insurance. |
| An increase in the cost and price of goods and services. Opposite of deflation. |
| Documentation of an application or a summary statement of the proposed insured's occupation, residence, health history,
lifestyle and general financial status. This report is prepared by the insurer or an investigating agency for consideration in the underwriting process. |
| The settlement option, or payment plan, which provides that the proceeds of a life insurance policy or annuity contract will
be paid in a fixed amount at regular intervals for as long as the proceeds last, or for a fixed number of months or years. |
| Acceptability by the insurer of an applicant for insurance based on factors such as the person's age, health, occupation,
etc. |
| The fact that the person effecting the insurance must suffer a financial loss at the death of the proposed insured. For the
policy to be issued, both the owner and beneficiary must have an insurable interest. |
| A system for reducing risk by transferring the risks of several individual entities to an insurer. The insurer agrees, for a
consideration (premium), to assume the specified losses suffered by the insured. |
| The top insurance regulatory official in a state. |
| A governmental bureau in each state charged with the administration of insurance laws, including the licensing of agents and
insurers and their regulation and examination. In some jurisdictions the department is a division of another state department or bureau. |
| An automated program for estimating a person's life insurance needs. Also referred to as Financial Needs Analysis. |
| A person or organization covered by an insurance policy, including the "named insured" and any other parties for whom
protection is provided under the policy terms. |
| The party that provides insurance coverage, typically through a contract of insurance. |
|
One of the settlement options, or payment plans, under which the proceeds of a life insurance policy are held by the company to earn
interest that is paid periodically to the beneficiary. The total insurance benefit is not paid out until some specified date in the future, but there are
limits as to the length of time a principal sum may be held. |
| The rate of interest credited on a policy's cash value. |
| Refers to the certain risk that interest rates will fluctuate and these changes may adversely impact the value of a
portfolio. For example, an investor with long-term bonds may suffer a reduction in the value of those bonds as interest rates rise. |
| A method of determining a policy's annual net cost by incorporating an interest factor into the calculation to reflect the
time-value of money. |
| An index of the average annual net payment (premium minus the equivalent annual dividend), which incorporates the time-value
of money. |
| This index is the average annual cost of insurance upon surrender, which incorporates the time-value of money. |
| Bonds whose issuers are rated AAA to BBB for safety and ability to repay principal by Standard & Poor's or Moody's Investors
Service. |
| Indicates the approach of an investment manager in selecting securities. For example, a certain manager may be value
oriented, whereas another may emphasize growth. |
| Refers to the length of time an investor plans to invest for. |
| A beneficiary that cannot be changed without their written consent. |
| A trust that cannot be revoked or amended by the party who establishes it. This type of trust is often established when life
insurance is purchased to protect an estate. |
| The date from which suicide and incontestability periods are calculated. |
|
| |
|
|
| |
| |
|
|
|
