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First Midwest Securities, Inc.
Glossary of Terms
R-U
reinstatement (of a policy)
If a policy has lapsed due to nonpayment of premiums
after the grace period has expired, it may be reinstated. To reinstate a policy,
the insurance company typically requires the insured to show evidence of
continued insurability (take a medical exam, for example), to pay all past
premiums plus interest due, and to reinstate or repay any outstanding loans.
settlement
Benefits paid from a life insurance policy.
split dollar
An arrangement under which an employer and an employee
can split the benefits and costs of a permanent life insurance policy.
sub-account
Accounts in which one may allocate investment dollars.
Sub-accounts, whose values fluctuate due to market risk, are offered in
"variable" products including life insurance and annuities. There are a variety
of sub-accounts to align with an investor's financial goals and willingness to
accept risk.
surrender charge
A fee imposed on a policy-owner when a life insurance
policy or annuity is terminated for its cash value. (See:
cash value.)
surrender value
(See:
cash value.)
survivor benefit
(See:
death benefit.)
term life insurance
Life insurance that provides coverage for a specified
period of time. It does not accumulate cash values.
universal life insurance
Permanent life insurance that combines the low-cost
protection of term insurance with a savings element that is invested by the
insurance company in a tax-deferred account, the cash value of which may be
available for a loan or withdrawal to the policyholder. (See:
permanent life insurance.)
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