Life Settlement Glossary
O
- occupational disease
- A condition or illness that was caused by factors in the workplace.
- offer
- The dollar amount and terms of an offer to purchase a life insurance policy for a life settlement transaction.
- open competition states
- States where insurance companies may set new, reasonable, adequate and non-discriminatory rates without prior approval subject to the state's insurance commissioner approval.
- operating expenses
- The costs of maintaining a businesses property, insurance, real estate taxes, utilities and rent, but excluding income tax, depreciation and financing expenses.
- opportunity cost
- The cost of accepting one financial option over another choice.
- optional benefits
- Riders that can be added to a life insurance policy for additional premium such as accidental death benefit and waiver of premium.
- option a, b and c (rop) death benefits
- Option A is the level death benefit option available on a universal life policy which means the death benefit is always the same on an unencumbered in force policy regardless of the policy cash value or the premium payments made. Option B is the same as Option A, except the cash value of the policy is paid at death along with the Option A amount. Option C pays the Option A amount upon death plus the cumulative value of all of the premiums paid since the inceptions of the policy.
- ordinary life insurance
- Otherwise referred to as whole life insurance, a policy that is designed to stay in force for a person's entire life span.
- original age conversion
- A life insurance conversion option that allows one form of insurance (usually term) to be exchanged for another from of insurance based on premium rates according to the age and risk class of the original policy
- other insured rider
- A life insurance policy rider that allows additional insurance on the life of a spouse and/or child of the primary insured.
- owner
- The individual or entity that holds all rights to a life insurance policy.
