Glossary

Is the accumulation value less any loan account value.

Is the amount of risk an insurance company has acquired from a contract at any given time. It is the difference between the cash value and the death benefit.

Is an amount equal to the net cash value less the amount of the applicable surrender charge, if any, specified in the table of surrender charges provided by the insurer.

Is the cash value less any loans.

Is the net amount payable upon the death of the insured based on the death benefit option then in effect under the policy. The Net Death Benefit may be more or less than the original face value of the policy. This could be as a result of the client taking withdrawals or loans and increases or decreases in the death benefit over time.

Is the portion of a premium payment, after deduction of the specified premium load, which can be available for allocation to the fixed or variable sub-accounts.

Is based on the gross rate of return, less fund expenses and monthly charges.

Is a premium charged to maintain a No-Lapse Provision in effect.

Is an option that provides a guaranteed death benefit for up to 10 years or to age 100, regardless of investment option performances, providing the stipulated no lapse premiums are paid. The provision and option type are selected at the point of issue.

Is a provision in the policy that permits the policy owner to elect how the cash value of the policy will be used, should the policy be surrendered or lapse due to non-payment of premium.

Non-Forfeiture Value

Is the value of an insurance policy if it is cancelled or required premium payments are not paid. This value can be realized as either a reduced amount of paid-up term life insurance, or as cash sum.

Is the maximum face value of a policy that an insurance company will issue without the requirement that an applicant take a medical examination.

Non-Participating Policy

A life insurance policy under which the company does not distribute to policyholders any part of its surplus. Premiums are usually lower than for comparable Participating Policies.

Is a form of reinsurance in which the reinsurer’s liability is limited to the number or amount of claims incurred in any given policy period.

Is a form of tax-deferred, employer-sponsored retirement plan that falls outside of the Employee Retirement Income Security Act Guidelines.

Is a life insurance contract that does not have the provision to renew coverage automatically without evidence of insurability.