Insurance Terms Glossary – JKL
Joint Life and Survivorship Annuity: Payments are made to two annuitants with the survivor continuing to receive payments after the first annuitant dies.
Joint Life Annuity: Payments continue to two annuitants for only as long as both live.
Key Person Insurance: Life or Health insurance on important employees whose absence would cause the employer financial loss. The insurance is usually owned by or payable to the employer.
Lapse: Termination of a policy because of failure to pay the premium.
Level Term Insurance (Regular Term): The amount of insurance protection in the Term policy remains constant during the policy period.
Lifetime Income Option: A Settlement option that provides for payments during the entire life of the payee. There are four methods:
- Straight Life Income – The payee receives a specified income for life, with no refunds upon death.
- Life Income Certain – The payee receives installments for life with a second payee receiving the payments if the first dies before the end of the time specified in the Certain Period.
- Joint and Survivor Life Income – Two payees are recipients of the income for the life of the first. The surviving payee then receives a lesser amount.
Life Insurance: Insurance paying a specified amount on the death of the insured, to his estate or to a beneficiary.
Limited Pay Life: A Permanent life-insurance policy on which premiums are paid for a specified number of years or to a specified age of the insured. Protection continues for the entire life of the insured. Policy maturity does not occur until age 100, even though the policy is “paid up” earlier.
Loan Value: That amount of Cash Value reposing in a policy that may be borrowed by the insured.
Long-Term Disability: 1) A disability having a duration longer than a short-term disability, the exact duration being variable and a matter of reference; commonly, anything longer than 90 days. 2) A form of Group Disability insurance paying benefits for more than the customary 13 to 26 weeks; commonly, benefits of five years’ duration or more, but again depending on teluus of reference.
Loss: An unpredictable reduction in the quality, quantity, or value of something. For example, bodily injury, disease, property damage, physical disappearance of property, incurred expenses, death, etc.
Loss Ratio: The percentage of losses to premiums – usually losses incurred to premiums earned. Lump Sum: Proceeds of a policy taken all at once. A single amount.
Liability: Broadly, any legally enforceable obligation. The term is most commonly used in a pecuniary (money-related) sense.
Liability Insurance: Insures the individual for financial losses that may arise out of the person’s responsibilities to others imposed by law or contract.
Limits of Liability: The maximum amount of money the insurance company will pay for a particular loss, or for loss during a period of time.
Lloyd’s Association (Surplus Lines): A voluntary association of individuals, or groups of individuals, who agree to share in insurance contracts. Each individual or “syndicate” is individually responsible for the amounts of insurance it writes. (E&S)
Loss: An unpredictable reduction in the quality, quantity, or value of something. (For example: bodily injury, disease, property damage, physical disappearance of property, incurred expenses, death, etc)
Loss Ratio: The percentage of losses to premiums, usually losses incurred to premiums earned.