LIFE DEFINITIONS Accelerated Benefits Life insurance benefits that become available because of a long-term, catastrophic or terminal illness. Accidental Death Benefit A provision added to a life insurance policy for payment of an additional benefit in case of death as a result of an accident. Actuary A professional individual responsible for reviewing the technical and financial aspects of an insurance policy, such as setting the premium rates and assessing risks. Annuity A contract that provides a series of payments, usually at regular intervals, for the duration of life. Beneficiary The individual or financial instrument named in the policy as the recipient of the life insurance payment at the time of policyholder’s death. Cash Value The amount available in cash given to an individual who surrenders their policy prior to death or maturity. Convertible Term Insurance Term insurance that could be covered into a permanent life insurance policy without evidence of insurability. Deferred Annuity A series of payments that will begin at a later or future date. Group Life Insurance A life insurance policy that is offered to a group of people under a master policy and which does not require medical examinations. It is usually issued to an employer for its employees or to members of an association. Guaranteed Insurability It provides the policyholder with an option to purchase additional insurance in the future without evidence of insurability. Individual Retirement Account (IRA) An account by an individual who allows deductions to be taken from their income and creates earnings on contributions to accumulate tax-deferred until retirement. Insurability The insurance company’s acceptance of an applicant of insurance. Insured The individual to which the policy is issued. Keogh Plan A tax-favored retirement plan for self-employed people. Life Annuity A policy and contract that provides income for life. Mortality Table A table statistically representing the death rates at various ages. Policyholder The owner of the insurance policy. Premium The amount paid at regular intervals for the insurance policy. Reinstatement Restoring a lapsed policy. Rider An amendment of an insurance policy that provides a modification, either by expanding or restricting certain benefits and coverage. Risk Classification Characteristics of those individual seeking a life insurance policy based on standard criteria (age, sex, health condition, occupation). Waiver of Premium A provision by which the insurance company keeps an existing insurance policy in force under certain conditions when the premium is not being paid.