A specified amount of insurance that a life insurer is willing to carry at its own risk on any one life without transferring some of the risk to a reinsurer.

  An extra charge applied to a life insurance policy as a result of adverse risk factors.  A Temporary Flat Extra is an amount charged for a specified number of years and then automatically removed (occasionally used for history of cancer).  A Permanent Flat Extra is typically charged due to an occupational or avocational risk.

An individual Life Insurance policy provision that gives the policyholder a stated time after the policy is received – no less than ten days – during which he or she can cancel the policy and receive a full refund of the initial premium payment.

The length of time (usually 31 days, but often 60 days with Universal Life policies) after a premium is due and unpaid during which the policy remains in force. If a premium is paid during the grace period, the premium is considered to have been paid on time.

Life Insurance where the master policy is issued to a third party such as an employer, and the insured parties are issued certificates of insurance.

  An annuity whose primary purpose is to pay out an income to the beneficiary, either over a stated period of time or for the lifetime of the annuitant.

A Life Insurance provision that limits the time within which the insurance company has the right to void the contract on grounds of material misrepresentation in the application for the policy.

  A Universal Life Insurance policy whose cash value is based on external investment indexes, such as the S & P 500, but with a no loss guarantee if the index selected produces negative results.

A Life Insurance beneficiary who has a vested interest in the policy proceeds during the insured’s lifetime because the policyholder only has the right to change the beneficiary designation after obtaining said beneficiary’s consent.

  A person’s ability to demonstrate that he/she qualifies for life insurance at a premium available from the insurance company.