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
Present value computation of the accrued or projected benefits of a retirement plan. This computation is known as the actuarial valuation because it is based on probability (retirement ...
Principle of surplus distribution as the result of excess funds above the amount required to establish legal reserves. These excess funds are generated from three sources: mortality ...
Reinsurance broker for a primary company (the re-insured). This broker is paid commissions by the reinsurance company, just as an agent is paid commissions by an insurance company for ...
Provision by an employer for the economic and social welfare of employees. Generally include: pension plans for retirement; group life insurance for death; group health insurance for ...
Stipulations of the rights and obligations of an insured and an insurer under a policy. ...
Individual or other entity who owns an insurance policy. Synonymous with policyowner. ...
Failure to exercise proper care. Many property insurance policies exclude losses that result from negligence. Neglect is also the basis for many liability suits. If an injury can be ...
Coverage underwritten on members of a natural group, such as employees of a particular business, union, association, or employer group. Each employee is entitled to benefits for hospital ...
Total earned premiums minus total expenses and losses paid of the insurance company. ...
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