COLUMBIAN MUTUAL
LIFE INSURANCE COMPANY
COLUMBIAN LIFE
INSURANCE COMPANY
 
 


 

 

COMMON LIFE INSURANCE TERMS

                                                                        

Lapse - when an insurance
company cancels a policy because the premiums were not paid.
Level Premium  - depending on
certain factors, the premium remains the same throughout the life of the policy.
Mode of Premium - how
frequently premiums are paid, such as annually, quarterly, or monthly.
NAIC - National Association
of Insurance Commissioners. A U.S. organization which promotes uniformity of insurance regulations among individual states.
Option  - the choice the policyowner
can make regarding settlements, dividends, and other policy values.
Policy - the contract between
the insured and the life insurance company which lists the terms and conditions of the coverage.
Policyowner - the owner of a life
insurance policy.
Premium - the amount the
policyowner pays the insurance company to keep the policy in force.
Rate - the cost per unit used to
calculate the premium.
Rider - an option attached to a policy
which then becomes part of the policy.

 
Risk - the possibility of loss incurred
by an insurance company when it issues a policy.
Settlement Agreement - the
policyowner and insurance company agree upon how the benefits will be paid to the beneficiary. 
Surrender Charge - the deduction
taken from the policy's reserve to arrive at its cash value.
Testamentary Disposition - when
the proceeds of a life insurance policy are dispensed through the instructions of the decedent's will.
Underwriter - an employee of an
insurance company who determines, through the use of statistical averages, whether the company will issue a policy on a particular life.
Valued Contract - an agreement,
such as a life insurance policy, where the benefit is determined in advance.
Void Contract - an invalid contract.
For instance, if a life insurance policy lacks insurable interest, it is a void contract because it is not in the public interest.
Withdrawal - when a policyowner
voluntarily cancels a life insurance policy.

 

Insurance is about security

 

At Columbian we want to ensure that you have the tools you need to make certain you are selecting the type of insurance best for you. Please refer to our "Life Insurance Consumer Guide" often.
 
For a free "Life Insurance Buyer's Guide" from Columbian, a full explanation or our product portfolio, or other information, click to our contact page and we will be happy to connect you with the agent nearest you!

 

Consumer Guide Home  /  Types  /  Riders   /  Terms 

Columbian Life Insurance Company is not licensed in every state.  Product availability may vary by state.
 

 
Calling from within New York State - 800-452-0555          Calling from outside New York State - 800-423-9765