Date of Issue:
The date printed on the policy that indicates when the policy was issued. This date
may be different than the policy date, which is the date the policy went into effect.
Decreasing Term Insurance:
Term insurance by which the death benefit decreases annually but the premium remains
level. This type of insurance is typically used to cover mortgages.
The designated amount the insured must pay after a loss before he/she is entitled
to the benefits from the insurer.
Disability Income (DI) Rider (Waiver of Premium): A rider that
allows insurance premiums to be waived when the insured is disabled, typically for
atleast: six months.
The return of a portion of the premium to a policyowner: by a participating mutual
or stock insurer. Dividends paid to policyowners: are not typically taxable since
they are a return of premium and not considered a gain. These dividends may be:
(1)taken: as cash, (2)applied against the premium, (3)used to purchase more insurance
coverage, (4)left on deposit with the insurance company to earn interest, or (5)used
to purchase one year of term life insurance.
For more reference, click on any of the letters below to find life insurance terms
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