Autopay:
Online service to change billing method from direct bill to credit card or automated bank draft.
Balance In Account:
Credit or debit in your account. This amount will be deducted or added to your next premium due.
Beneficiary (Primary):
The person, persons, or entity designated to receive death benefits from an insurance policy.
Beneficiary (Contingent):
The person, persons, or entity designated to receive death benefits from an insurance policy in the event the Primary Beneficiary predeceases the insured.
Billing Frequency or Mode:
Frequency with which premiums are paid (monthly, quarterly, semi-annual, annual).
Billing Method:
The customer has the option of paying their premiums by a credit card, a pre-authorized payment (EFT), or direct bill.
Cash Value:
The cash value represents the accumulation with interest of the portion of the premium left after deducting a charge for expected claims and allowable insurance company expenses.
Cash Value Quote: Request a letter stating
the cash value of a Policy/Certificate as of today's date.
Conversion Option:
An option available on some life insurance policies to allow the insured to switch to a different type of policy without evidence of insurability.
Current Amount Due:
Premium amount due in order to keep the Policy/Certificate in force.
Direct Bill:
A premium due notice (billing statement) for customers who want to be billed thru the mail.
Earned Premium:
The portion of premium which has already been used or "earned" by the company during the premium period.
Extended Term Policy:
Non-forfeiture option that uses the cash value of a life policy as a single premium to purchase term life insurance in the amount of the original policy.
Face Value:
The face value represents the amount that will be paid upon the death of the insured.
Grace Period:
The period of time after the due date of the premium for the policy where the policy stays in force and in which it can be paid without penalty.
Insured:
The person or group protected by an insurance Policy/Certificate in case of a claim or loss.
Irrevocable Beneficiary:
A beneficiary whose rights or compensation cannot be changed by the policyowner without his/her consent.
Issue Date:
The date printed on the Policy/Certificate that indicates when the Policy/Certificate was issued.
Lapse:
The cancellation of an insurance policy due to the non-payment of premium.
Loan Value:
The amount of money that can be borrowed against an insurance policy.
Loan Balance: Request a letter stating the
loan balance of a Policy/Certificate as of today's date.
No Cash Value: Request a letter stating a
Policy/Certificate does not accumulate cash value.
Non-forfeiture Option (NFO): An option available on some life insurance policies to a policyowner who has ceased paying premiums whereby the policy may be surrendered for its cash value, borrowed against in the form of a loan, or converted to smaller face amount policy or a term policy with a shorter period (extended term policy).
Non-forfeiture Options (NFO) With Loan:
Request a letter stating the available non-forfeiture options (NFO) that
include loan value options for a policy\certificate.
Non-forfeiture Options (NFO) Without Loan:
Request a letter stating the available non-forfeiture options (NFO) that
does not include loan value options for a policy\certificate.
Paid To Date: The date that indicates coverage of benefits up to and through the payment date.
Paid-Up Policy:
A type of life insurance policy where all the premiums have been paid and no further premiums are due.
Payor:
The person, group, or entity responsible for making payments on a Policy/Certificate.
Policyowner (Policyholder):
The individual who owns an insurance Policy/Certificate and who has all contractual rights. The policyowner is not necessarily the same person as the insured or the payor.
Policy/Certificate Number:
A maximum of a ten-digit number assigned to an insurance policy or certificate.
Policy/Certificate Status:
Indicates whether the Policy/Certificate is pending, rejected, in-force or terminated.
Power Of Attorney:
A written document in which one person, the principle, appoints another person, the agent, to act and make decisions on his or her behalf.
Pre-Authorized Payment:
Provides the customer the convenience of having insurance premiums automatically drafted from a checking or savings account.
Premium Amount:
The periodic payment required to keep a specific Policy/Certificate in force.
Reduced Paid-Up Policy (RPU):
Non-forfeiture option that uses the cash value to purchase a smaller face amount; fully paid-up policy, with no more premiums due.
Reinstatement:
Restoring a policy to full force. Not all policies can be reinstated. Reinstatement provisions vary and may require the payment of all back premiums and evidence of insurability.
Rider:
An amendment or endorsement to a policy that adds or removes coverage.
Schedule Page or Statement of Insurance (SOI):
A declaration page containing the insured’s information, the Policy/Certificate number, the policy coverage period, premium amounts, and benefit coverage amounts.
Signature to Surrender:
Request a letter to surrender a Policy/Certificate .
Social Service/Medicare Life Insurance Verification:
The process whereby an applicant seeking government assistance, life insurance asset information and current values are confirmed by the company. The listing includes the type of policy, the insured’s name, the policyowner’s name, the issue date, the face value, the cash value, and the Policy/Certificate status.
Social Service/Medicare Life Insurance Verification With
Cash Value: Request a letter that can be provided for Social
Service/Medicare Life Insurance Verification to an agency assisting an applicant
seeking government assistance. This letter includes the type of policy,
the insured's name, the policyowner's name, the issue date, the face value, the
cash value and the Policy/Certificate status.
Social Service/Medicare Life Insurance Verification
Without Cash Value: Request a letter that can be provided for
Social Service/Medicare Life Insurance Verification to an agency assisting an
applicant seeking government assistance. This letter includes the type of
policy, the insured's name, the policyowner's name, the issue date, the face
value, and the Policy/Certificate status as well as a statement that the policy
does not accumulate cash value.
Surrender: To terminate or cancel a life insurance policy before its maturity date and take the cash value.
Term Life Insurance:
Life insurance that provides protection for a specified period of time.
Transfer of Ownership:
The transfer of all or part of a policyowner’s rights to a policy to another person or entity.
Unearned Premium:
The portion of premium which has not been used or “earned” by the company during the premium period.
Whole Life Insurance:
Life insurance that provides protection for a person’s entire lifetime.
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