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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Life Insurance Terms

  Currently Displayed — Page 1
Accelerated Benefit Option — Irrevocable Life Insurance...
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Joint and Survivor...Universal Life
accelerated benefit optionDefinition (Estate-management, Insurance)
An option that allows the insured to receive insurance benefits before they would ordinarily be available.
accelerated death benefit (ADB)Definition
An option that allows the insured to receive insurance benefits before they would ordinarily be available.
  ➥  More commonly referred to as a Accelerated Death Benefit Rider (ADBR).
accelerated death benefit rider (ADBR)Definition
An option that allows the insured to receive insurance benefits before they would ordinarily be available.
accidental death and dismemberment insuranceDefinition (Estate-management, Insurance)
Insurance coverage for death or dismemberment (the loss of a body part).
accidental death benefit (ADB)Definition (Estate-management, Insurance, Legal-contracts)
An additional benefit that pays an additional sum to a beneficiary if the cause of death is deemed to be accidental.
  ➥  A life insurance policy rider.
additional insured renewable term rider (AIRTR)Acronym
alternate cash surrender value (ACSV)Acronym
annual premium equivalent (APE)Acronym
  ➥  A standardized measure of the volume of new life insurance business written.
annual renewable term (ART)Acronym
assigneeDefinition (Estate-management, Real-estate, Insurance, Legal-contracts)
A person appointed to acquire (take) an item, such as a property.
assignorDefinition (Estate-management, Real-estate, Insurance, Legal-contracts)
Associate, Academy of Life Underwriting (AALU)United States and Canada
attained ageDefinition (Estate-management, Insurance)
The current age of an insured individual.
beneficiaryDefinition (Investments, Estate-management, Annuities, Insurance)
An individual or entity chosen to receive benefits from a will, trust, deed or insurance policy.
binding death benefit nomination (BDBN)Australia
A legally binding document given to a trustee that states the beneficiaries of a life insurance death benefit.
  ➥  Mostly an Australian insurance term.
burial insuranceDefinition (Estate-management, Insurance)
Insurance that provides coverage for funeral expenses.
Canadian Life and Health Insurance Association (CLHIA)Company Est.1894, Canada
A voluntary non-profit association with member companies accounting for 99 per cent of Canada’s life and health insurance business.
  ➥  Legislative and regulatory representative for Canada's insurance industry.
capital adequacy requirement (CAR)Acronym
  ➥  A level of capital required in order to support an insurance business.
cash surrender value (CSV)Definition (Investments, Estate-management, Annuities, Insurance, Financial-banking)
The liquid value of an insurance policy if the policyholder voluntarily cancels the policy before maturity or an insured event.
cash surrender value of life insurance (CSVLI)Acronym
charity lump sum death benefit (CLSDB)Acronym
Chartered Life Underwriter (CLU)Canada
  ➥  A professional designation demonstrating knowledge of life insurance products.
commutationDefinition (Investments, Estate-management, Annuities, Insurance, Financial-banking)
An option given to the beneficiaries of annuities and life insurance policies that allows them to modify the frequency and size of benefit payments.
competentDefinition (Estate-management, Legal-contracts)
Legal ability to make decisions and enter into contracts.
Conference for Advanced Life Underwriting (CALU)Canada
contingent beneficiaryDefinition (Investments, Estate-management, Insurance, Financial-banking)
A beneficiary who only receives his or her benefit when specific conditions have been met.
convertible life insuranceDefinition (Estate-management, Insurance)
A type of term life insurance policy that has the option to be converted into a permanent life insurance policy such as whole or universal life insurance.
credit life insuranceDefinition (Mortgages, Estate-management, Insurance)
Life insurance that repays the insured's debts upon their death. The death benefit decreases as the debt is paid off.
critical illness (CI)Definition
Insurance that covers individuals in the event of a critical or catastrophic illness.
  ➥  A health insurance policy rider.
critical illness insurance (CII)Definition (Insurance)
Insurance that covers individuals in the event of a critical or catastrophic illness.
death & disability (D&D)Acronym
death benefit (DB)Definition (Investments, Estate-management, Annuities, Insurance, Financial-banking)
A payment or series of payments made to the beneficiaries of a life insurance policy.
  ➥  An amount paid to a beneficiary in a life linsurance policy.
death, maturity, surrender (DMS)Acronym
decreasing term life insuranceDefinition (Estate-management, Insurance)
A Term life insurance policy with benefits that decrease each year as the policyholder ages.
disease management (DM)Definition (Insurance)
The process of discussing and agreeing to treatments and care plans for individuals with long-term health care needs.
  ➥  Heath care decisions made to manage a disease.
disease management program (DMP)Acronym
dread disease riderDefinition (Estate-management, Insurance)
Insurance that provides a benefit if the policyholder is diagnosed with an illness that is deemed serious or terminal.
estate planningDefinition (Investments, Estate-management, Annuities, Taxation, Insurance, Financial-banking)
The process of determining how assets will be dispersed after an individual's death, ideally in the most tax-efficient way possible.
family income riderDefinition (Estate-management, Insurance)
A recurring or lump sum life insurance benefit that matches the policyholder's income.
Fellow of the Academy of Life Underwriting (FALU)United States and Canada
fiduciaryDefinition (Estate-management, Financial-banking, Legal-contracts)
An individual, company, or association that manages assets for another party. Fiduciaries include executors of wills and estates, trustees, receivers in bankruptcy, and those responsible for managing the finances of a minor.
flexible premium variable life insurance (FPVLI)Acronym
foreign variable universal life insurance (FVUL)Acronym
group life insuranceDefinition (Estate-management, Insurance)
Life insurance offered to a large number of people belonging to an organization, usually as part of a benefit package.
guarantee periodDefinition (Investments, Estate-management, Annuities)
A time period where income payments from an annuity are guaranteed.
guaranteed minimum death benefit (GMDB)Acronym
The minimum amount of money promised to be awarded to a beneficiary, provided all premiums have been paid.
home office specimen (HOS)Acronym
human life approachDefinition (Estate-management, Insurance)
A method of estimating what the probable lifetime financial impact a life insurance policyholder's death would have on his or her beneficiaries.
irrevocable beneficiaryDefinition (Investments, Estate-management, Insurance, Financial-banking)
A life insurance or segregated fund beneficiary whose benefit cannot be revoked or modified in any way without his or her consent.
irrevocable life insurance trust (ILIT)Acronym
  Currently Displayed — Page 1
Accelerated Benefit Option — Irrevocable Life Insurance...
  Next Page
Joint and Survivor...Universal Life

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Index of Life Insurance Terms

Page 1: Accelerated Benefit Option
Irrevocable Life Insurance...
Page 2: Joint and Survivor Annuity
Universal Life
Page 3: Universal Life Insurance
With-Profits Policy

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