Definitions - A
A beneficiary that cannot be changed without written
Benefits available in some life insurance policies
before death and usually triggered by long-term, catastrophic
or terminal illness.
Accidental Death Benefits (ADB)
A provision added to a life insurance policy for payment
of an additional benefit in case of death that results
from an accident. This provision is often called "double
Account Value or Accumulation Value
The accumulated premiums and interest after expense
charges, cost of insurance, and charges for any supplemental
benefits or riders in Universal life Insurance policies.
Used to determine the policy's amount-at-risk in calculating
mortality charges. A surrender charge is applied to
it to determine the loan and surrender cash value.
An age calculation based on a person's last birth
date (actual age) for premium rate determinations.
A mathematician employed by an insurance company to
calculate premiums, reserves, dividends, and insurance,
pension, and annuity rates, using risk factors obtained
from experience tables.
Adjustable Life Insurance
A type of life insurance that allows the policy holder
to change the plan of insurance, raise or lower the
face amount of the policy, increase or decrease the
premium and lengthen or shorten the protection period.
Advanced Premium Deposit
Annual premiums paid in advance at a discount. The
interest earned on the amount deposited before the
premium due date reduces the cost of the premiums.
The tendency of persons with higher risk health expectations
to apply for or continue insurance coverage to a greater
extent than persons with lesser health expectations.
The date on which an insured's age changes. In most
life insurance contracts this is the date midway between
the insured's birthdays. The date of age change depends
on whether the insurer uses a age nearest birthday
or age last birthday calculation for determining premium
Age Nearest Birthday
An age calculation based on a person's nearest birth
date for premium rate determinations. If the person's
birth date is within six months, they are considered
the next age.
Ages below and above which an insurance company will
not accept applications or renew policies.
An authorized representative of an insurance company
who sells and services insurance contracts.
Document changing the provisions of an insurance contract
signed jointly by the insurer and the policyholder.
Annual Policy Statement
Individual statements, providing specific policy information
and values, which are sent to policyowners on each
To begin a series of payments from an annuity. This
term also refers to the settlement of a life insurance
policy under the contract's annuity options.
A contract sold by a life insurance company that provides
fixed or variable payments to an annuitant, either
immediately or at a future date.
The person applying for the insurance policy. The
applicant is not necessarily the owner or the insured.
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.
A supplement to the application which documents that
the non-guaranteed elements of the contract have been
disclosed to the applicant during the sales process.
Signifies the legal acceptance of forms by a state
when policy information is filed; Signifies the insurer's
acceptance of risks as set forth in an application
for insurance (as originally made or modified by the
insurer); or Signifies the acceptance of a request
from an applicant or policy holder for new insurance,
reinstatement of a terminated policy, a policy loan,
or other request.
The legal transfer of one person's interest in an
insurance policy to another person.
The insured's age on a given date. Attained age is
one of the factors life insurance companies use to
determine the insured's premiums. Some insurance companies
round up the insured's age to the next age six months
after each birthday.
Attending Physician's Statement (APS)
Information from a proposed insured's physician covering
medical history and results of medical examinations.
It is used to determine the appropriate underwriting
classification for the proposed insured.
Permission from the policy owner or proposed insured
which allows release of information to a named party.
The extra hazard of death or injury resulting from
participation in aeronautics, usually as other than
a passenger. This generally requires an extra premium
rating or waiver of certain coverage benefits
(some definitions taken from the National Association
of Insurance Commissioners' Life Insurance Buyers
The above data is for informational purposes only
and is not binding legally. The information is updated
on a regular basis, but some facts such as ratings
may have changed since this page was posted. Consult
an 1Adv Term Life Insurance representative to verify