The physical examination of a proposed insured, usually conducted by a licensed physician or other medical examiner, the results of which become part of the application, thus part of the policy contract and attached thereto. In most cases, the medical exam consists of blood pressure readings, blood and urine samples, height and weight measurements and a medical questionnaire. Occasionally, an EKG and other tests may be required, based on either amount of death benefit or age of the applicant or both.
Medical Information Bureau (MIB):
A data pool service that stores coded information on the health histories of people who have applied for life or health insurance with subscribing companies in the past. Most life insurance companies have subscriptions with the MIB.
The frequency with which premiums are paid (monthly, annually, quarterly, semi-annually)
The relative incidence of death.
One of the basic factors needed to calculate basic premium rates. It utilizes mortality tables in attempting to determine the average number of deaths that will occur each year.
A listing of the mortality experience of individuals by age. A mortality table permits the actuary to calculate, on the average, how long a male or female of a given age may be expected to live.
One of the basic uses for life insurance, so called because many family breadwinners leave insurance for the specific purposed of paying off any mortgage balance outstanding at the time of their death. Reducing term life insurance was at one time predominantly used for mortgage insurance, but as level term life insurance premiums decreased over the years, it has become the policy of choice for mortgage insurance.
Mutual life insurance company:
A life insurance company that has no capital stock or stockholders. It is owned by its policyowners, and is managed by a board of directors chosen by the policyowners. Any earnings in addition to those necessary for the operation of the company are returned to the policyowners in the form of policy dividends.
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