Glossary

Is an optional premium paying rider that covers the monthly cost of deduction charges due on an insurance policy for as long as an insured is totally disabled or as otherwise defined in the policy. It is typically found in Adjustable Life, Universal Life and Variable Universal Life products.

Is a provision that outlines conditions under which an insurance company would keep a policy in full force without the payment of premiums. As with the WMD, the waiver lasts for as long as the insured is totally disabled, or as otherwise defined in the policy.

Are the result of the combination of interest credits on borrowed funds and additional interest credits to cash value, which offset each other.

Is the most common type of permanent life insurance. The premiums typically remain constant during the life of the policy and are paid periodically in the amounts specified in the contract.

Is a way of obtaining funds from the cash value of a permanent life insurance policy. Any withdrawal will permanently reduce the face amount of a policy.

Is the transaction fee typically applied to administer withdrawals.

Is an insurance that covers the cost of medical care required as a result of work related injuries and subsequent physical rehabilitation. Workers’ Compensation additionally helps to cover the cost of lost wages during the period of recovery. State laws can vary widely on the benefit amounts deemed payable.