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| A leading market cap weighted stock index composed of 500 publicly traded companies. |
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A procedure for making the effective date of a policy earlier than the application date. Backdating is often used to make the age of
the insured at issue lower than it actually was in order to get a lower premium. |
| Refers to planned premiums that are scheduled at the time of issue. |
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A type of life insurance policy that insures the lives of two people, typically a husband and wife. The death benefit proceeds are
payable upon the second death and used to satisfy the estate tax. |
| A person(s) designated by the policyowner to receive policy proceeds if the Primary Beneficiary is deceased at the time
benefits become payable. Also referred to as Secondary Beneficiary. |
| Internal Revenue Code 401(k) is an employer-sponsored, salary-reduction retirement savings program. The employee defers a
percentage of current salary on a pre-tax basis and the employer often matches some portion of that amount. |
| Governmental regulatory body charged with the responsibility of overseeing and enforcing the law as it pertains to securities
and investment related matters. |
| Descriptive of the mortality experience of newly underwritten insured's. This period of discernibly different (favorable)
mortality usually lasts 5 to 15 years. |
| The ways in which policy holders or beneficiaries may choose to have benefits paid other than a lump sum. |
| Preliminary Term insurance, not to exceed 11 months, which may be attached to a policy to change the anniversary date for the
purpose of more conveniently spacing premium payments. |
| An underwriting process that applies a less strict analysis of risk factors. Participants in group plans may qualify for this
abbreviated form of underwriting. |
| A life insurance plan that requires only one premium and is guaranteed to remain paid-up throughout the insured's lifetime.
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| An arrangement in which two parties, usually an employer and employee, jointly purchase the policy, pay premiums and share in
the policy's benefits. |
| A discount for purchasing coverage together as husband and wife from the same insurance company. |
| An underwriting rate classification for non-smokers who have minor health impairments. |
| An average risk, not subject to rate loadings or restrictions because of poor health. |
| A rating structure in which the premiums increase periodically at pre-determined times such as policy years or attained ages.
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| A life insurance company owned by stockholders who elect a board to direct the company's management. Stock companies, in
general, issue nonparticipating insurance, but may also issue participating insurance. |
| Whole life insurance on which premiums are payable for life. |
| An individual, who, because of health history or physical limitations, does not measure up to the qualification of a standard
risk. |
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A policy provision usually stating that if the insured dies by suicide within two years of the date of issue, the amount payable
would be limited to the total premiums paid, less any policy debt. The full benefit would only be paid if the insured dies by suicide during the first two
certificate years, or one year in a small number of states. |
| The amount by which the value of an insurer's assets exceeds its liabilities, i.e., the net worth of an insurance company.
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| To terminate or cancel a life insurance policy before the maturity date. In the case of a cash value policy, the policy
holder may exercise one of the non-forfeiture options at the time of surrender. |
| An amount retained by the issuer of a life insurance policy when a policy is canceled, typically assessed only during the
first five to ten years of a policy. |
| A type of life insurance policy that insures the lives of two people, typically a husband and wife. The death benefit
proceeds are payable upon the second death and used to satisfy the estate tax. |
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