LIFE SETTLEMENT GLOSSARY EXAMPLE

life-settlement-glossary-example.jpg
MALE - Age 69
$500,000 10 Year Level Term
  • $1,985 Annual Premium
  • $13,882 Conversion Annual Premium

Life Insurance Settlement Amount of $16,500

A retiree was about to drop his expiring term policy when he discovered it could be converted and sold using a life settlement. As a result of the sale, he recovered most of the term premiums he had paid over the past ten years and used the proceeds to offset the cost of an extended tropical vacation.

Want to know what YOUR policy is worth?

Start LIVEpdq Here

A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z

U

unbundled contracts
For life insurance, universal life type policies where the elements of mortality, expenses, and interest are fully disclosed to the policyowner.
underwriter
The individual within a life insurance company who is responsible for reviewing personal and medical information in order to assign a risk class for new life insurance applicants.
underwriting
The process of evaluating, classifying, and pricing life insurance or life settlements.
underwriting department
The department within a life insurance company or life settlement provider that is responsible for carrying out the underwriting function.
underwriting impairments
Factors uncovered during the life insurance underwriting process that result in the payment of substandard premiums.
underwriting requirements
A list of the essential information that is needed to properly evaluate, classify, and price a proposed insurance risk.
unearned premium
The portion of an insurance premium that applies to the unexpired part of the policy period. Even though premiums are paid at the beginning of a policy period they are not completely earned by the company until the end of the period. For some life insurance policies, however, unearned premiums are still retained by the insurer even if a policy is cancelled mid-term.
uninsurable risk
A life insurance risk that cannot be covered for any amount at any cost.
universal life insurance
Otherwise known as flexible premium adjustable life insurance, an unbundled life insurance product consisting of guaranteed and non-guaranteed mortality costs, expenses, and interest earnings.