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Life Settlement Glossary
- death benefit
- The base amount payable when the insured under a life insurance
policy dies before deducting outstanding policy loans or late premium
payments, and before adding the value of dividends.
- death claim
- A claim filed for payment under the terms of a life insurance
- On of the beginning pages of an insurance policy that states
information about the insured, coverage, premiums, and other
- declined risk class or uninsurable risk class
- Pertaining to life insurance, the group of proposed insured's whose
life expectancies are so shortened that the insurer cannot provide
insurance coverage at an affordable cost.
- decreasing term life insurance
- A type of term life insurance that has a decreasing death benefit
until the end of the coverage period.
- deferred premium
- Premiums due an insurance company between the dates of its last and
next annual statements.
- The process an insurer follows to switch from a mutual company to a
- dependent life insurance
- Typically an optional form of group life insurance that covers the
spouse, children, or other dependents of the group member and is paid
for by the group member.
- deposit premium
- The initial premium tendered when an initial application is made
for an insurance policy.
- deposit term life insurance
- A type of term life insurance that requires a much larger premium
payment in the first year, with lower premiums thereafter.
- depository institution
- Financial institutions that receive funds from public deposits.
Examples are commercial banks, savings and loan associations, savings
banks and credit unions.
- Contracts that are frequently used as a hedge and are valued
according to an underlying asset, like a security or currency.
- direct insurer or direct writers
- Otherwise known as direct insurers, direct writers, or
direct-writing companies, these are insurance companies that do not use
agents to distribute their policies but instead deal directly with
- direct sales/direct response
- A sales process used by direct writers to sell insurance through
it's own employees via mail, phone, or online.
- disability waiver
- A rider available on life insurance policies to keep the policy in
force by waiving premiums if the insured is totally disabled. Life
settlement policies typically have a higher value if this rider is in
effect and premiums are being waived.
- An amount normally paid to whole life policy owners in addition to
the guaranteed benefits of the policy. Insurance companies calculate
dividends based on the profitability of policies.
- dividend accumulation option
- Same definition as the accumulate at interest dividend option.
- dividend options
- Most commonly one of five possible alternatives that whole policy
owners can choose to receive dividends from participating policies.
Alternatives can be cash, reduce premiums, accumulate at interest, paid
up additional insurance, or supplementary one year term insurance.
- double indemnity benefit
- An additional death benefit rider to a life insurance policy that
pays twice the normal face amount if the death of the insured results
from an accident.
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