|
|
| . | Glossary*
A - K
Beneficiary
Buy-sell agreements
Capital gains tax
Collateral insurance
Compassionate Assistance Program (CAP)
Death benefit
Evidence of insurability
Face Amount
Grace Period
Illustrations
Incontestability period
Joint first-to-die
Key person insurance
Back to Top
L - R
Lifetime coverage (starting at age 40)
Life insurance
Lifetime insurance
Medical report
Needs analysis
Premium
Parent protection
Payment
Rated policy
Replacement
Riders
S - Z
Second first-to-die
Single life
Stock Insurance Company
Suicide clause
Surrender charge
Term insurance
Underwriting
10 year term coverage
20 year term coverage
| |
 | Beneficiary is the person who will receive the death benefit of a life insurance policy upon the insured person's death - can also be called the primary beneficiary. A secondary beneficiary is entitled to proceeds/benefits if no primary beneficiary is living when the insured person dies. A tertiary beneficiary is entitled to proceeds if no primary or secondary beneficiary is living when the insured person dies.
Buy-sell agreements provide for the transfer of ownership of a business in different circumstances - death, disability, retirement or disagreement. Proper funding is required to ensure money is available to purchase the shares of a deceased or disabled owner or partner, when needed.
Capital gains tax is the tax associated with the increase in value of a business, generally payable upon the death of the shareholder or business owner.
Collateral insurance is often required by banks or other lending institutions to cover the repayment of a business loan in the event of death. Life insurance premiums for this coverage may be tax deductible.
Compassionate Assistance Program (CAP) - In case of terminal illness, the CAP program may allow insured persons to obtain a loan based on a portion of their policy’s death benefit.
Death benefit is the actual amount payable to the beneficiary. This amount may be decreased by loans or increased by additional benefits payable under specified conditions.
Evidence of insurability is a statement or proof of physical condition and/or other factual information affecting a person's eligibility for insurance.
Face amount is the term commonly used to refer to the original amount of insurance issued and is shown in your policy contract. Also called coverage amount.
Grace period is the length of time (usually 31 days) after a premium payment is due and unpaid. During the grace period the policy (including all riders) remains in effect.
Illustrations are projected policy values over time, based on assumptions. Illustrations show values that are guaranteed and values that are not.
Incontestability period is a time limit (usually two years) on the life insurance company's right to dispute a policy's validity based on incorrect information provided in the application. This limit doesn't apply in cases of fraud.
Joint first-to-die one whole life insurance policy that covers two persons lives and that provides for payment of the proceeds when the first insured person dies. It is generally designed to pay estate taxes. (also known as joint whole life insurance)
Key person insurance provides funds upon the death of a key person in your business to cover unexpected expenses that may occur as a result of his or her death. These expenses could include recruiting and training costs, and the need to cover a loss in cash flow due to a reduction in sales.
Lifetime coverage (starting at age 40) a policy that remains in force during the insured person’s entire lifetime, provided premiums are paid as specified in the policy.
Life insurance provides an immediate cash benefit to support your family if you die prematurely.
Lifetime insurance, also called permanent insurance, is life insurance protection that covers you for the rest of your life.
Medical report is a report on the insurance applicant's health. It is completed by a physician and is based on a physical examination and questioning of the proposed insured person.
Needs analysis is a process that analyses your current financial situation and your objectives to help you determine your survivors' cash needs when you die.
Parent protection provides life insurance on your parents.
Payment is the amount you're required to give us, the insurance company, to keep your policy in effect. Payments can be monthly (through pre-authorized chequing), quarterly, semi-annual or annual.
Premium is the periodic payment required to keep an insurance policy in effect (also called deposits or payments). Premium mode is the frequency that premiums are paid (for example, annually, quarterly, monthly).
Rated policy is a policy issued to insure a person classified as having a greater-than-average risk to the insurance company: for example, a person with impaired health or a hazardous occupation. The policy may be issued with special exclusions and/or a premium rate that is higher than the rate of a standard policy.
Replacement is the process of purchasing a new insurance policy to take the place of an existing policy or part of the coverage of that policy. Certain conditions need to be met to replace a policy, such as completing a Life Insurance Disclosure Form, to ensure you're fully aware of the pros and cons of both policies.
Riders provide additional protection you can optionally purchase to protect against a variety of losses. An example is a Term Insurance Rider, which could be used to add temporary insurance protection on an existing policy.
Single life a basic form of insurance coverage that covers the life of one person.
Second first-to-die one whole life insurance policy that covers two persons and provides for payment of the proceeds when both of the insured persons have died. It is generally designed to pay estate taxes. (also known as last survivor life insurance)
Term insurance is life insurance protection for a set time period (for example, 10 or 20 years) and can often be renewed after this period up to a maximum age.
Stock insurance company is an insurance company that is owned by investors who own shares of the company's stock. Manulife Financial became a stock company on September 24, 1999.
Suicide clause is the life insurance policy wording, which specifies that the proceeds of the policy will not be paid if the insured takes his or her own life within a specified period of time (usually two years) after the policy is issued.
Surrender charge is an amount of money deducted from some life insurance policies when the owner of a policy surrenders or cancels the policy for its cash value.
Underwriting is the process an insurance company uses to review an application for life insurance before accepting and issuing an insurance policy. The purpose of this review is to determine the potential degree of risk that a person represents to the life insurance company.
10 year term coverage is a life insurance policy under which the benefit is payable only if the insured dies during the specified 10 year period.
20 year term coverage is a life insurance policy under which the benefit is payable only if the insured dies during the specified 20 year period.
*Manulife Financial Insurance Company assumes no responsibility for the contents of this glossary. Contact your legal or tax advisor with questions regarding legal or tax aspects of the terms or definitions. Contact us if you have questions regarding the applicability of theses terms to Manulife Financial’s life products. | |
|
|
HelpButton/$File/ctech_keyboard_help_button.jpg)
