LifeQuote Glossary - A

Accelerated Death Benefit

A provision or rider that allows you to receive all or part of the benefits of your policy before you die. These benefits are paid for terminal illnesses such as AIDS, organ transplant, nursing home confinement, etc. The allowable reasons to receive such benefits vary from company to company. Also known as "living benefits".

Accidental death benefit

A provision or rider that pays more (i.e., double) in case you die as a result of an accident. Also called "double indemnity."

Actuary

An expert trained in the mathematics of insurance responsible for the calculation of reserves, premiums, and other values.

Administrative expense charge

An amount deducted from the policy to pay the costs of administering the policy.

Amendment

An attachment to a policy that modifies certain policy benefits.

Annuitization

The process of paying the cash from a life insurance policy according to a schedule of monthly (or other) periodic payments for the lifetime of the payee or for joint lifetimes of two payees. Various guarantees of a minimum number of payment periods are also usually available. The option selected will affect the precise amount of each payment.

Applicant

The person applying for a life insurance policy. He/she can apply for an individual insurance policy, a trust policy, or a business policy.

Application

A signed request for life insurance providing detailed information about the prospective policyholder.

Assignment

Giving rights and benefits under your insurance policy to someone else.

Assumed interest rate

The minimum interest rate on a variable life insurance policy.

Attained age conversion

attained age often comes into play for convertible term policies which allow conversion to permanent insurance such as whole life with no medical examination or medical questions. The new permanent insurance policy will be issued at the age the policyholder has attained at the time of the conversion.

Automatic premium loan

if you cannot pay your premiums, the insurance company takes money from your policy’s cash value to pay the premiums, assuming there is sufficient cash value.