Termination of a policy due to nonpayment of premiums.

Lapsed policy:
A policy terminated because of nonpayment of premiums.

Level premium term life insurance policy:
A term life insurance policy in which the premium remains unchanged throughout the life of the policy (the term).

Debts and obligations.

With respect to insurance, certification issued by the appropriate state department(s) of insurance that an individual is qualified to solicit insurance applications for the period of time covered.  Usually issued for a period of one or two years, renewable upon application, without the necessity of the applicant’s undergoing the original qualifying requirements.  However, proof of completion of continuing education courses is typically required by most states at renewal time.

Life expectancy:
The average duration of the life remaining to a number of persons of a given age, according to a given mortality table.

Life insurance:
Insurance in which the risk insured against is the death of a particular person (known as the insured), upon whose death within a stated term (for term insurance), or whenever death occurs (for permanent insurance), the insurance company agrees to pay a stated sum or income to the beneficiary.

Life insurance trust:
A trust for the purpose of distributing life insurance proceeds.  Life insurance companies usually cannot act as trustees or guardians, nor exercise discretion in making payments to beneficiaries.  In some cases, it is advisable to have the policy proceeds paid into a trust and distributed under the terms of a trust agreement, thereby permitting greater flexibility in the distribution of the proceeds.

Living trust:
A trust created to take effect during the lifetime of the grantor.

Lump sum:
Payment of the entire proceeds of a life insurance policy in one sum.  The method of settlement provided by most policies unless an alternate settlement is elected by the policyowner before the insured’s death or thereafter by the beneficiary before receiving the payment.

(back to main Life Insurance Glossary page)

Visit these links to learn about:

Get instant life insurance quotes:

To speak with a licensed representative, contact us or call 866-691-0100

Latest News

Affordable Life Insurance with Asthma
life insurance with asthma

Something quite interesting about today’s life insurance market is that very few people pay more premium for being affected by asthma. In the grand scheme of things, only the worst cases of asthma are rated sub-standard by most life insurance companies. Yes, there is affordable life insurance with asthma. When someone is shopping for life […]

Read More
What is the Medical Information Bureau?
medical information bureau

The Medical Information Bureau (MIB) provides a collection of private medical and non-medical (hazardous avocations, hobbies, and driving violations) data. The primary purpose of the MIB is to furnish the exchange of underwriting information between its member companies. Member companies are compelled to report a coded summary of conditions and conclusions which may be important […]

Read More
6 Life Insurance Tips for Millennials
insurance tips for millennials

Although we grow into adults year by year, there can still be a shock to our systems when we find ourselves out of school and out of our parents’ home. Regardless of how prepared we may believe we are, complicated issues are thrown at us every day and in every manner. Yes, there is the […]

Read More