Accelerated Death Benefit
A benefit that allows for the early payment of some portion of the policy’s face amount should the policyholder suffer from a terminal illness or injury.
Accidental Death & Dismemberment Insurance
Pays additional benefits if a death or injuries occur as the result of an accident.
Refers to benefits that are used to supplement group health insurance.
The person named in the policy to receive the insurance proceeds at the death of the insured. Anyone can be named as a beneficiary.
Person or persons named to receive proceeds in case the primary beneficiary is not alive. Also referred to as a secondary or tertiary beneficiary.
Allows the policyholder to convert his or her insurance coverage when it is being reduced or terminated for any reason other than non-payment of premiums.
Evidence of Insurability (EOI)
Statements or proof of a person’s physical condition affecting the acceptance for insurance.
The right to purchase insurance without physical examination; the present and past physical condition of the applicant are not considered.
Health Savings Account (HSA)
A tax-advantaged medical savings account available to taxpayers in the U.S. who are enrolled in a high-deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit.
High-Deductible Health Plan (HDHP)
A health insurance plan with lower premiums and higher deductibles than a traditional health plan. Being covered by an HDHP is a requirement for having a health savings account (HSA).
Period of time each year when individuals can sign up for insurance.
Any type of disability in which the worker is unable to perform at full physical capacity. This is usually due to an on-the-job injury or an illness.
Allows the policyholder to continue (“port”) his or her insurance coverage when his or her employment is being voluntarily or involuntarily terminated.
A health or physical condition that existed prior to the effective date of an insurance policy.
A beneficiary who is first in line to receive the named benefits.
Supplemental Life Insurance
Additional life insurance coverage on top of your basic life insurance.
Because of a sickness or injury, the policyholder is unable to work in his or her own or any occupation for which he or she is suited by training, education or experience.
Voluntary Life Insurance
Voluntary life insurance is an optional benefit offered by employers where an employee pays a monthly premium in return for cash paid to beneficiaries upon death.
Waiver of Premium
A clause that waives the policyholder’s obligation to pay any further premiums should he or she become seriously ill or disabled. It allows people to benefit from an insurance policy, even when they cannot work.