SGLI

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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.

Retention Limit

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.

Pensions

Programs to provide employees with retirement income after they meet minimum age and service requirements. Life insurers hold some of these funds. Since the 1970s responsibility for funding retirement has increasingly shifted from employers (defined benefit plans that promise workers a specific retirement income) to employees (defined contribution plans financed by employees that may or … Read more

Pension Benefit Guaranty Corporation

An independent federal government agency that administers the Pension Plan Termination Insurance program to ensure that vested benefits of employees whose pension plans are being terminated are paid when they come due. Only defined benefit plans are covered. Benefits are paid up to certain limits.

Ordinary Life Insurance

A life insurance policy that remains in force for the policyholder’s lifetime. It contrasts with Term Insurance, which only lasts for a specified number of Years but is renewable. See Term Insurance

Mortgage Insurance

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A form of decreasing Term Insurance that covers the life of a person taking out a mortgage. Death benefits provide for payment of the outstanding balance of the loan. Coverage is in decreasing Term Insurance, so the amount of coverage decreases as the debt decreases. A variant, mortgage unemployment insurance pays the mortgage of a … Read more