Glossary

Insurance Terms:

Life Insurance

• Term - the type of life insurance policy that provides protection only for a specified period of time.  A common policy period would be one year, five years, 10 years or until the insured reaches age 65 or 70.  It does not build up any of the non-forfeiture values associated with whole life policies.

• Corporate Term – a program specifically designed as an institutional purchase of individual life insurance for executives, professionals, physicians and highly compensated individuals via a unique issuance format and pricing schematic otherwise unavailable.

• Universal Life – a combination flexible premium, adjustable life insurance policy.  The premium payer may select the amount of premium he or she can pay and the policy benefits are those which the premium will purchase.  Or, the premium accordingly.  Many believe this is the only true solution to the “buy term invest the difference” problem.

• Survivorship Universal Life – a life insurance policy in which two people are covered on one policy. The death benefit is paid upon the second death. The premiums for this joint life policy are significantly lower than a regular policy. Many people take this type of life insurance to help pay estate taxes after the deaths of both a husband and wife.

• Variable Universal Life – a combination of the features of variable life insurance and universal life insurance under the same contract.  Benefits are variable based on the values of equity investments, and premiums and benefits are adjustable at the option of the policy holder.

• Whole Life – insurance which may be kept in force for a person’s whole life and which pays a benefit upon the person’s death, whenever that may be.  All whole life policies build up non forfeiture ordinary life policy, premiums are paid for as long as the insured lives.  A single premium policy is paid for at one time in one premium.  Between these two types there are may limited-payment plans, under which the insured pays premiums for a certain period or until reaching a certain age.

• Single Premium Life  – a life insurance policy paid for in one single premium in advance rather than in annual premiums over a period of time.

Annuity Insurance:

• Fixed Annuities – an annuity that provides that the annuitant will receive a fixed payment during the period of the annuity.

• Indexed Annuities – a special type of contract between you and an insurance company. During the accumulation period – when you make either a lump sum payment or a series of payments – the insurance company credits you with a return that is based on changes in an equity index, such as the S&P 500 Composite Stock Price Index. The insurance company typically guarantees a minimum return. Guaranteed minimum return rates vary. After the accumulation period, the insurance company will make periodic payments to you under the terms of your contract, unless you choose to receive your contract value in a lump sum.

• Immediate Annuities – an annuity that commences payment to the annuitant at the end of the first prescribed payment period.  If an insured buys an immediate annuity with monthly payments, he will start receiving benefits at the end of the first month after the purchase.

• Medically Impaired – a risk with insurable qualifications below the standard of risks on which the premium for the coverage was based.  For example, a life insurance prospect with heart disease would be medically impaired.

• Group VA for Qualified Plans Only – designed specifically to address the situation in accumulating funds for retirement. The ability to choose investment options allow the trustee of a pension or profit sharing plan tremendous diversification. The same is true for an individual participant on a 401(k) plan. Through the Plan's Trustee, the participant can select from the investment options, regardless of the participant's age. The tax-deferred growth of funds within a qualified retirement plan, combined with the flexibility and diversification of a Group Variable Annuity contract, create exciting possibilities for the accumulation of retirement assets.

Long Term Care & Disability Insurance:

• Disability Income – a form of health insurance that provides periodic payments to replace income, actually or presumptively lost, when the insured is unable to work as a result of sickness or injury.

• Disability Buy Out Funding – funds a buy-sell agreement to buy out a disabled business owner to help keep the business value intact and ensure its succession.

• Business Overhead Expense – a disability income policy which indemnifies the business for certain overhead expenses incurred when the business owner is totally disabled.