Introduction Vocabulary

1. Payment made by the insurance company to the policy owner with the cash value of the policy as security or collateral.
4. Feature of many term policies to be exchanged for permanent life insurance.
5. Life insurance under which the benefit is payable only if the insured dies during specific timeframe.
7. Termination of a policy due to non-payment of renewal premiums.
11. Permanent life insurance coverage with assets invested in a separate account.
12. The person whose life is covered under the policy.
13. The monthly charges deducted from the accumulation fund of universal life policy to pay for the insurance.
14. Party that promises to pay a benefit if specified loss occurs.
16. The person who has the right to exercise any and all rights on the policy.
17. Permanent life insurance coverage with flexible premiums and adjustable death benefits.

1. The percentage charged on any cash loaned from the policy value.
2. Document containing terms and conditions of variable policy, required by the SEC.
3. Length of time, often 30 days, after the premium is due an unpaid during which the policy remains in force.
6. Date at which policy terminates reaching its scheduled endowment date.
7. A type of insurance that provides a sum of money if the insured dies while the policy is in effect.
8. Legal document stating the terms of the life insurance coverage
9. The total premium for life insurance policy.
10. The amount paid to the beneficiary of the life insurance policy upon the death of the insured.
15. Life insurance coverage that remains in force during lifetime provided that premiums are paid as specified.