Glossary

For help in understanding common words and phrases related to your Simple Issue Term policy, check the alphabetical listing below.

Attained Age
The age of the insured's last birthday, as of the Policy Date and each policy anniversary thereafter.

Beneficiary The person(s) named by the Owner to receive the Proceeds upon death of the insured. There are two types of beneficiaries:

  • The primary Beneficiary has first priority to receive the Proceeds.
  • The secondary Beneficiary will receive the Proceeds only if there is no surviving Primary Beneficiary.
Current Premium
The Premium that is in effect at any time. The current premium is subject to change and will never be greater than the Guaranteed Maximum Premium shown in the Policy.

Evidence of Insurability
Information about a person that the insurance company uses to issue or reinstate a policy or provide additional benefits.

Face Amount
The amount stated on the policy that will be paid in case of death.

Insurability
Acceptability to the company of an applicant for insurance.

Insured
The person identified in the policy on whose life the policy is issued.

Level Premium (Life Insurance)
Life insurance for which the premium remains the same from period to period.

Owner
The person, persons or entity identified as the Owner in the policy. The Owner is entitled to all the rights under the policy while the Insured is living.

Policy Date
The effective date of coverage under the policy. The policy years and anniversaries as well as the incontestability provision and suicide exclusion are measured from the Policy Date.

Premiums
Payments to the insurance company to buy a policy and to keep it in force.

Proceeds
The death benefit payable under the policy, as described in the Death Benefit Provision of the policy.

Renewable Term Insurance
Term insurance which can be renewed at the end of the term, at the option of the Owner and without evidence of insurability, for a limited number of successive terms. The rates generally increase at each renewal as the age of the Insured increases.

Secondary Owner
A designated person, persons or entity who becomes the Owner of the policy should the Owner die while the Insured is living.

Term Insurance
Term Insurance covers you for a term of one or more years. It pays a death benefit only if you die within that term.

Unpaid Premium
The amount of premium that has not been paid by its due date.