Riders, Life Policies
Endorsements to life insurance policies that provide additional benefits or limit an insurance company's liability for payment of benefits under certain conditions. These include:
- Waiver of Premium for Disability. An insured with total disability that lasts for a specified period no longer has to pay premiums for theduration of the disability. In effect, the company pays the premiums.
- Accidental Death Benefit.
- GUARANTEED INSURABILITY.
- COST-OF-LIVING ADJUSTMENT (COLA).
- Other Insured. Term life insurance is added on a person other than the primary insured, with the rate based on the other person's age,sex, underwriting classification, and amount of coverage.
- Children's Insurance. Term insurance on each child is added, usually to the age of majority. Generally, a child cannot becomeinsured before the age of 15 days or after his or her eighteenth birthday.
- Additional Insurance. Term insurance can be added to ordinary life policies as an additional layer of coverage for some specified timeinterval.
- Transfer of Insureds. In business situations, generally used to insure key persons with the cash value and the insurance coveragetransferable from the initial insured person to another person.
Popular Insurance Terms
Account established and administered by a state agency to finance a mandatory insurance program, for example, workers compensation insurance. ...
Actuarial procedure used to determine the cost of protection of a cash value life insurance policy on an annual basis. This cost of protection is developed by the following steps: Cash ...
Dividend paid in addition to the regular dividend on a participating insurance policy. ...
Extra layer of life insurance coverage. This term is often applied to double indemnity. For example, some life insurance policies provide a death benefit of a multiple of the face value if ...
Evidence of a temporary contract obliging a life or health insurance company to provide coverage as long as a premium accompanies an acceptable application. This gives the company time to ...
Approach that reflects losses expected. It is a calculation of the pure cost of property or liability insurance protection without loadings for the insurance company's expenses, premium ...
Agency of the federal government formed as the result of bankruptcies of savings and loan associations during the 1930s. Insures deposits of customers up to $100,000 for each account. In ...
Method, developed in 1970 by Dr. William Haddon, Jr., of classifying and preventing damage caused by accidents. The thesis is that accidents are caused by the transfer of energy with such ...
Addition to a basic insurance policy to further explain coverages, add or exclude perils and locations covered, and add or delete positions covered. For example, an endorsement to the ...
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