Used as a vehicle for retirement income or other longer term savings purposes such as an educational fund for children or grandchildren.

A statement of information made by someone applying for life insurance. The information gathered helps the life insurance company assess whether the risk presented by the applicant is acceptable to underwriters.

The amount paid to the beneficiary or beneficiaries of a life insurance policy if an insured dies.

A condition due to sickness or injury that curtails a person's ability to carry on normal pursuits. A disability may be partial or total, and temporary or permanent as verified by doctor.

Insurance that provides periodic pay-outs when an insured is unable to work due to illness or injury as verified by a doctor.

An amount of money available in cash or as additional benefits under certain types of life insurance policies. The amount available is a partial refund of premiums paid when experience under the policies, as a group, are more favorable than originally anticipated.

Medical exams or test required by an insurer before an applicant can purchase an individual life insurance policy.

The number of days of disability that must go by during a period of disability before benefits become available.

The amount stated on the face of a life insurance policy to be paid in the case of death or policy maturity. It does not include dividend addition or additional amounts payable under accidental death or other special provisions.

A period ( usually 31 days) following each insurance premium due date, other than the first due date, during which an overdue premium may be paid. All provisions of the policy remain in force throughout this period.

Contract under which an insured has the right, commonly up to a certain age, to continue the policy by the timely payment of premiums. Under renewable contracts, the insurer reserves the right to change premium rates by policy class.

In a disability insurance policy, an accidental bodily injury which occurs while the policy is in force.

The person on whose life or disability an insurance policy is issued.

Whole life insurance on which premiums are payable for a specified number of years or until death, if death occurs before the end of the specified period.

An insurance that covers nursing care and assisted living expenses if a chronic illness or disability leaves an insured unable to care for themselves.

Long-term Disability Income Insurance is designed to provide benefits for a long duration such as 2 years, 5 years, or in some cases up to 65. The elimination period for this policy is usually 90 or more days.

A type of life insurance plan that includes a death benefit, and typically, a cash value component.

The printed document issued to the policyholder by a company stating the terms of the insurance contract.

Under an insurance policy, the amount that can be borrowed at a specified rate of interest form the issuing company by the policyholder, who uses the value of the policy as collateral for the loan. In the event the policyholder dies with the debt partially or fully unpaid, the insurance company deducts the amount borrowed, plus any accumulated interest, from the amount payable.

The payment, or regular periodic payments, that a policyholder makes to own an insurance policy.

The restoration of a lapsed insurance policy. The insurer may require evidence of insurability and payment of past due premiums plus interest before they can reinstate your policy.

An amendment to an insurance policy that modifies the policy by expanding or restricting its benefits or excluding certain conditions from coverage.

One of several ways, other than payment in a lump sum, in which the insured or beneficiary may have policy proceeds paid.

Short-term Disability Income Insurance is designed to provide benefits for a temporary period of time usually 3-6 months. As a result this type of policy usually has an elimination period of 10 days.

Persons who cannot meet the health requirements of a standard health insurance policy.

Insurance that covers the insured for a certain period of time known as the "term". The policy pays death benefits only if the insured dies during the term.

The inability to perform the duties of a previous occupation, or any other occupation, due solely to sickness or injury.

The process of classifying applicants for insurance by considering characteristics such as age, gender, health, occupation and hobbies. People with similar characteristics are charged a premium based on the group's level of risk.

Unlike traditional cash-value policies (known as "whole life"), universal life policy returns were freed from long-term, fixed rate contracts and replaced with policies whose returns were ties to short-term interest rates and periodically adjusted. In addition, premiums and death benefits can be changed by the policyholder.

A provision that sets conditions under which an insurance policy would be kept in full force by the company without the payment of premiums. It is used most by policyholders who become totally and permanently disabled, but may be available in other cases.