Glossary

 
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Lapse

Is the discontinuation of insurance when the required premium is not paid and no cash value exists. If there is a cash value, there may be non-forfeiture provisions available. See Non-Forfeiture Value.

 

Lapse Protection Rider

Is a rider available on some Universal Life (UL) and Survivorship Universal Life (SUL) products. This policy provision provides for guaranteed coverage up to a maximum of 50 years from policy issue, or age 100, whichever is earlier, provided that necessary funding levels are achieved.

 

Legal Reserve Life Insurance Company

A life insurer operating under state insurance laws that specify the minimum basis for reserves that the company must maintain on its policies.

 

Level Premium Life Insurance

Is a form of life insurance for which the level of premiums remains the same for the full lifetime of the policy. The premium paid on this type of policy is more than the actual cost of protection during earlier years and less than the actual cost in later years. The initial overpayments build a reserve which, together with interest earned, balances the underpayments of later years.

 

Level Term Rider

Is a one year, annually renewable, flexible premium level, term insurance rider found on some in-force whole life products which is convertible up to age 65. It typically provides additional term insurance for a specified number of years.

 

Life Annuity

Is an insurance product that provides a periodic pay-out amount until the death of the annuitant.

 

Life Exchange

Is a news wire organization dedicated to the Life Settlement industry.

 

Life Expectancy

The average years (or months) of life remaining for a hypothetical group of identical persons of a given age, according to a mortality table.

 

Life Insurance in Force

Is the dollar amount of life insurance that a company has issued calculated as the sum of policy face values outstanding at a given time, plus any dividends. Additional amounts payable under accidental death or other special provisions are not included in these amounts.

 

Life Insurance Settlement Association (LISA)

Is a trade body for Life Settlement industry participants.

 

Life Underwriter

See Agent.

 

Limited Payment Life Insurance

Is a life insurance policy that can be completely paid for within a specified time period. The policy remains in force until the death of the insured. It typically earns a cash value which grows on a tax-deferred basis.

 

Living Benefits

 

Load

Is an amount an insurance company, or an annuity provider, adds to the basic premium to cover the expense of securing and maintaining the business.

 

Loan Account Value

Is the amount of policy indebtedness including outstanding loans and accrued but unpaid interest.

 

Loan Value

Is the highest amount which can be borrowed by the policy owner from the company using the cash value of the policy as collateral. Usually the interest rates payable are defined within the policy.

 

Long-Term Care Insurance

Is insurance that provides coverage for individuals who become unable to care for themselves due to disability, chronic illness, or cognitive impairment.

 

Lump-Sum Distribution

Is insurance that provides coverage for individuals who become unable to care for themselves due to disability, chronic illness, or cognitive impairment.

 
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