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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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Section 1035 Exchanges:
A section of the Internal Revenue Code that allows for taking the proceeds of one life insurance policy or annuity and immediately investing them into another life insurance policy or annuity, without having to pay taxes on any gains.
Split Dollar Plan:
A method of purchasing life insurance where an employee and an employer split the premiums, ownership rights and benefits. There are two types of split dollar plans: endorsement and collateral.
Standard Risk:
An applicant or insured who is considered to have a normal, or average, probability of a loss based on health, a vocation and lifestyly.
Substandard Risk:
An applicant or insured who is considered to have a higher than normal risk of incurring a loss based either on health, a vocation and/or lifestyle. An applicant considered a substandard risk may be offered coverage at a higher premium.
Suicide Clause:
A limitation in a life insurance policy that states that if an insured commits suicide during the initial term of the policy (usually two years), that no death benefits will be paid by the insurance company.
Super-Preferred Risk:
An applicant or insured who is considered to have a much lower than normal risk of incurring a loss based either on health, avocation and/or lifestyle. A super-preferred risk will be offered coverage at the lowest premium.
Surrender:
The act of terminating a whole life policy. The policyowner exchanges future rights of coverage for the immediate cash value of a life insurance or annuity policy.
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Term Life Insurance:
A type of low-cost, life insurance that only pays benefits if the insured dies during the specified period of time. Term life insurance does not build cash value.
Termination:
The cancellation of an insurance policy by the insurance company or the insured.
Tertiary Beneficiary:
The third beneficiary to a life insurance policy eligiblefor policy benefits should the primary and secondary beneficiaries not survive.
Title Insurance:
Covers a purchaser of property against unknown defects at the time of purchase, such as a lien against the property.
Total Loss:
Damage(s) to property that are so severe that the property cannot be restored to the previous condition before the damage(s) occured.
Trustee:
A person acting as a guardian of property who holds, manage and/or uses the property for the benefit of a third party, according to the terms and conditions of the trust.
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