Accelerated Benefits Rider - A life insurance rider that allows for the early payment of some portion of the policy's face amount should the insured suffer from a terminal illness or injury.
Accelerated Death Benefit Riders - Supplementary life insurance policy benefit riders that allow a policy owner-insured to receive a specified portion of the policy's death benefit before death if certain conditions are met.
Accidental Death and Dismemberment - Insurance providing payment if the insured's death results from an accident or if the insured accidentally severs a limb above the wrist or ankle joints or totally and irreversibly loses his or her eyesight.
Accidental Death Benefit Rider - A life insurance policy rider providing for payment of an additional benefit related to the face amount of the base policy when death occurs by accidental means.
Age Limits - The age, usually around 70-85, that an insurance company will not issue or renew a life policy.
Agent - An authorized representative of an insurance company who sells and services insurance contracts
Annually Renewable Term - A form of renewable term insurance that provides coverage for one year and allows the policy owner to renew his or her coverage each year, without evidence of insurability. Also called Yearly Renewable Term (YRT).
Annuitant - This is the person during whose life an annuity is payable.
Applicant - The party applying for an insurance policy.
Application (APP) - A form on which the prospective insured states facts requested by the insurance company and on the basis of which (together with any information from medical examiners, attending physicians, hospitals, investigations, and the agent) the insurance company decides whether or not to accept the risk, modify the coverage offered, or decline the risk. An application without premium money is a request for an offer. With premium money, it is an offer itself, unless the insurance company declines to issue as applied for.
Assigned Risk - A risk which underwriters do not care to insure, but because of state law or otherwise, the insured must be protected and the insurance is therefore handled through the state, or a bureau and assigned to companies.
Attained Age - Your current age. Your attained age is one of the factors life insurance companies use to determine your premiums. The older you are, the greater chance you'll die while you are covered - so the higher your premium.
Backdating - A procedure for making the effective date of a policy earlier than the application date. Backdating is often used to make the age of the consumer at issue lower than it actually was in order to get lower premium. State laws often limit to six months the time to which policies can be backdated.
Beneficiary - Person to whom the proceeds of a life policy are payable when the insured dies. The various types of beneficiaries are: primary beneficiaries (those first entitled to proceeds); secondary beneficiaries (those entitled to proceeds if no primary beneficiary is living when the insured dies); and tertiary beneficiaries (those entitled to proceeds if no primary or secondary beneficiaries are alive when the insured dies).
Best's Insurance Report - A guide, published by A.M. Best, Inc., that rates insurers' financial integrity and managerial and operational strengths.
Binder - A temporary insurance policy that expires at the end of a specific time period or when the permanent policy is written. A binder is given to an applicant for insurance during the time the complete policy paperwork is being completed.
Binding Premium Receipt - A type of premium receipt that provides a potential insured with temporary insurance coverage from the time the applicant receives the receipt until the insurer declines the application or issues and delivers a policy.