A benefit in which the insurer promises to waive its right to collect the renewal premiums that lapse while the insured is fully disabled.
Glossary Group: Glossary of Insurance Terms
Terminal disease benefit
A benefit under which the insurer pays a portion of the death benefit set forth in the policy to a policyholder and insured person with a terminal disease and whose life expectancy, per medical certification, is 12 months or less.
Specific disease benefit
An accelerated death benefit coverage offered by the insurer in which the insurer accepts to pay a portion of the nominal amount of the policy to a policyholder and insured person who suffers a disease specified in the contract.
Double indemnity benefit
A benefit obtained in addition to the accidental death benefit equal to the basic life insurance policy amount.
Cost-of-living adjustment benefit
Periodic increases in the disability income benefit amount corresponding to the cost of living.
Survivor benefit
In deferred life annuity or annuity policies, if the annuitant or contract holder dies before payment of the life annuity or annuity benefits can be made, the accumulated value of the life annuity or annuity is paid to the beneficiary designated by the contract holder.
Revocable beneficiary
A beneficiary of a life insurance policy who does not have a guaranteed right to the policy proceeds during the insured’s life, as the policyholder reserves the right to change the designation during the insured’s life.
Primary or first beneficiary
The party designated to receive the policy proceeds upon the death of the insured.
Irrevocable beneficiary
A beneficiary whose right cannot be changed or reversed without the policyholder obtaining their consent in writing.
Contingent beneficiary
The party designated to receive the policy proceeds only if the designated primary beneficiary has died before the insured.