In life reinsurance, non-routine expenses of the Ceding Company for claims investigation, legal defense or rescission actions. The reinsurer typically agrees to pay such expenses as distinct from punitive, exemplary or other non contractual expenses which it does not agree to pay.
A flexible premium policy that combines protection against premature death with a type of savings vehicle, known as a cash value account, that typically earns a money market rate of interest. Death benefits can be changed during the life of the policy within limits, generally subject to a medical examination. Once funds accumulate in the … Read moreUniversal Life Insurance
A form of Annuity contract that gives purchasers the freedom to choose among certain optional features in their contract.
A form of life insurance that covers the insured person for a certain period of time, the “term” that is specified in the policy. It pays a benefit to a designated beneficiary only when the insured dies within that specified period which can be one, five, 10 or even 20 Years. Term life policies are … Read moreTerm Insurance
An form of Annuity that pays out over a fixed period rather than when the Annuitant dies.
A charge for withdrawals from an Annuity contract before a designated surrender charge period, usually from five to seven years.
Legal agreement to pay a designated person, usually someone who has been injured, a specified sum of money in periodic payments, usually for his or her lifetime, instead of in a single lump sum payment. See Annuity
An Annuity that is paid in full upon purchase.
A reinsurance Pool established for the Servicemen’s Group Life Insurance program. Servicemen’s Group Life Insurance (SGLI) refers to insurance coverage for military personnel that belong to such groups as the Navy, Armed Forces, Marines, Coast Guard, etc. Eligibility is automatic if one is qualified. Premium payment is taken from the salary.
The maximum amount of risk retained by an insurer per life is called retention. Beyond that, the insurer cedes the excess risk to a reinsurer. The point beyond which the insurer cedes the risk to the reinsurer is called retention limit.