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| Postponing the payment of income taxes until some point in the future, often at retirement. Generally, the cash value growth
inside life insurance is eligible for deferral, unless the amount of cash received through surrender exceeds the policy's tax basis. Any additional surrenders
beyond the basis must be reported as taxable income. Taxes may be deferred on modified endowment and annuity contracts until the owner takes possession of the
cash benefits. |
| The policy owner's Social Security number. The insurer must have a certified tax-payer identification number to avoid backup
withholding when there is taxable gain. |
| A Term Life insurance policy with a level death benefit where the premium remains the same for ten years. |
| Many Term policies come with conversion rights guaranteeing that, for a specified period of time, the policy can be converted
to a permanent plan for the equivalent amount of coverage, without having to provide additional evidence of insurability. |
| A life insurance plan that provides death benefit protection only and for a specified period of time (term). The policy pays
benefits only if the insured dies during the term. |
| Termination of a policy upon the policy owner's failure to pay the premium within the grace period. |
| In life insurance, a beneficiary designated as third in line to receive the proceeds or benefits if the primary and secondary
beneficiaries do not survive the insured. |
| A policyowner who is not the insured. |
| A Term Life insurance policy with a level death benefit where the premium remains the same for thirty years. |
| The lettering system used to identify a stock, mutual fund, or ETF on an exchange. Also called trading symbols. |
| Transfer of the ownership of a life insurance contract for valuable consideration. |
| A legal instrument allowing one party to control property for the benefit of another. |
| Relates to the frequency with which a money manager is buying and selling securities within a fund. High portfolio turnover
translates into higher trading costs, which fund investors must pay. Low portfolio turnover is better because it lessens the impact of trading and tax
related costs. Also referred to as turnover. |
| A Term Life insurance policy with a level death benefit where the premium remains the same for twenty-five years. |
| A Term Life insurance policy with a level death benefit where the premium remains the same for twenty years. |
| The practice of inducing by misrepresentation, or inaccurate or incomplete comparison, a policy holder in one company to
lapse, forfeit or surrender his insurance for the purpose of taking out a policy in another company. |
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