ABC | DEF | GHI | JKL | MNO | PQRS | TUV | WXYZ

T

Tax-Deferral
Postponing the payment of income taxes until some point in the future, often at retirement. Generally, the cash value growth inside life insurance is eligible for deferral, unless the amount of cash received through surrender exceeds the policy's tax basis.

Tax-Payer Identification Number (TIN)
The policy owner's Social Security number. The insurer must have a certified tax-payer identification number to avoid backup withholding when there is taxable gain.

Ten-Year Level Term
A Term Life insurance policy with a level death benefit where the premium remains the same for ten years.

Term Conversion
Many Term policies come with conversion rights guaranteeing that, for a specified period of time, the policy can be converted to a permanent plan for the equivalent amount of coverage, without having to provide additional evidence of insurability.

Termination
Termination of a policy upon the policy owner's failure to pay the premium within the grace period.

Term Life Insurance
A life insurance plan that provides death benefit protection only and for a specified period of time (term). The policy pays benefits only if the insured dies during the term.

Tertiary Beneficiary
In life insurance, a beneficiary designated as third in line to receive the proceeds or benefits if the primary and secondary beneficiaries do not survive the insured.

Third-Party Owner
A policyowner who is not the insured.

Thirty-Year Level Term
A Term Life insurance policy with a level death benefit where the premium remains the same for thirty years.

Transfer for Value
Transfer of the ownership of a life insurance contract for valuable consideration.

Trust
A legal instrument allowing one party to control property for the benefit of another.

Twenty-Year Level Term
A Term Life insurance policy with a level death benefit where the premium remains the same for twenty years.

Twenty-Five Year Level Term
A Term Life insurance policy with a level death benefit where the premium remains the same for twenty-five years.

Twisting
The practice of inducing by misrepresentation, or inaccurate or incomplete comparison, a policy holder in one company to lapse, forfeit or surrender his insurance for the purpose of taking out a policy in another company.

U

Ultimate Mortality
Descriptive of the insured's mortality experience after the select period, when mortality increases due to health deterioration.

Underwriter
An employee of a life insurance company who is trained to evaluate the insurability and determine the classification of persons applying for insurance protection.

Underwriting
The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged. The process includes rejection of unacceptable risks.

Underwriting Classes
Classification given to an individual based on personal and family health history.

Underwriting Profit or Loss
The amount of money which an insurance company gains or loses as a result of its insurance operations. It excludes investment transactions and federal income taxes.

Unearned Premium
The portion of a premium that a company has collected but has yet to earn because the policy still has unexpired time to run.

Uniform Premium
A rating structure in which one premium applies to all insured, regardless of age, sex, or occupation.

Unilateral Contract
A contract having promises by one party only.

Uninsurable Risk
One not acceptable for insurance due to excessive risk.

Unisex Rates
Rates that are used for both male and females.

Unisex States
States that allow the use of Unisex rates (as of August 30, 2001: only Montana).

V

Variable Life Insurance
Life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid. The amount of death benefit payable would, under variable life policies that have been proposed, never be less than the initial death benefit payable under the policy.

(some definitions taken from the National Association of Insurance Commissioners' Life Insurance Buyers Guide)