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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
U
Underwriter:
The party who assesses the applicant's/insured's risk level, establishes the corresponding premium(s) and assures that funds will be available to pay to the insured in the event of a loss.
Unilateral Contract:
A legal contract in which only one party makes any legally enforceable promises. A life insurance policy is a unilateral contract since the insurer writes the contract and makes future promises and the insured pays the premium in exchange for such considerations.
Uninsurable Risk:
The risk of incurring a loss is so high that an insurer will not offer coverage.
Uninsured Motorist Coverage:
This type of coverage is part of an automobile insurance policy and protects the owner of an insured vehicle where damages are made to the insured vehicle by a person who is not covered by insurance.
Universal Life Insurance:
An adjustable type of life insurance that provides both term life insurance coverage and a savings vehicle side account with a guaranteed minimum return on the investment. This type of life insurance also allows the policyowner to change the amount of coverage and premiums throughout the duration of coverage.
V
Variable Life Insurance:
An investment oriented type of permanent life insurance that provides both life insurance coverage and a savings vehicle through sub-accounts with the amount of return linked to an underlying portfolio of securities. Variable life insurance has a fixed premium and a guaranteed minimum death benefit.
Voidable:
An insurance policy that can be cancelled by either the insurer or the insured if either side breaches any term(s) in the contract.
W
Waiver of Premium:
When a life insurance company no longer requires that an insured party make premium payment if he/she has become disabled for longer than six months. The insurance policy remains in full force even though premium payments are no longer required.
Whole Life Insurance:
A type of life insurance that remains in full force for the insured's entire life, as long as premiums are paid.
X
Y
Yearly Renewable Term (YRT):
Provides the policyowner the right to renew his/her term life insurance policy at the end of each year without evidence of insurability. This annual renewal right continues until the policyowner reaches a specified age or for the number of years determined by the policy's contract. With most Annual (Yearly) Renewable Term contracts, the premium increases every year, especially as the insured reaches age 50 and older.
Z
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