Life Insurance

Insurance that pays out a sum of money either on the death of the insured person or after a set period.

Modified Coinsurance

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Commonly known as Mod-co. Indemnity life reinsurance that differs from coinsurance only in that the reserves are transferred back to the Ceding Company while the risk remains with the reinsurer; the Ceding Company is required to pay interest to replace that which would have been earned by the reinsurer if it had held the assets corresponding to the reserves … Read more

Viatical Settlement Companies

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Insurance firms that buy life insurance policies at a steep discount from policyholders who are often terminally ill and need the payment for medications or treatments. The companies provide early payouts to the policyholder, assume the premium payments, and collect the face value of the policy upon the policyholder’s death.

Variable Life Insurance

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A policy that combines protection against premature death with a savings account that can be invested in stocks, bonds, and money market mutual funds at the policyholder’s discretion.

Variable Annuity

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An Annuity whose contract value or income payments vary according to the performance of the stocks, bonds and other investments selected by the contract owner. An insurance company contract into which the buyer makes a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments beginning immediately or at some future date. … Read more

Whole Life Insurance

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The oldest kind of cash value life insurance that combines protection against premature death with a savings account. Premiums are fixed and guaranteed and remain level throughout the policy’s lifetime.

Waiver

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The surrender of a right or privilege. In life insurance, a provision that sets certain conditions, such as disablement, which allow coverage to remain in force without payment of premiums.

Key Person Insurance

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Insurance on the life or health of a key individual whose services are essential to the continuing success of a business and whose death or disability could cause the firm a substantial financial loss.