Glossary

 
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Table of Surrender Charges

Is a table that the insurer provides the insured which describes the different surrender charges.

 

Target Premium

Is the amount of premium that the life insurance company believes to be adequate to fund a policy.

 

Tax-Sheltered Annuity Plan

 

Temporary Insurance Agreement (TIA)

Is an arrangement by which an amount of coverage is temporarily afforded to an applicant of a life insurance policy during the underwriting process whilst the insurance company determines whether the individual meets the insurance company’s eligibility requirements.

 

Term Conversion

Is the point when the convertibility option of a term policy is exercised and permanent coverage is issued, often with an applicable conversion credit and without having to provide any evidence of insurability.

 

Term Insurance

Is an insurance that protects the insured for a specified period of time. The policy pays death benefits only if the insured dies during the term, which can be just one, or as many as twenty years. Unlike permanent life insurance policies, Term Insurance will not provide any returns beyond the stated benefit and as such wouldn’t be used for wealth accumulation purposes.

 

Term Purchase Option (TPO)

Is an excess credit option found on whole life policies that uses excess credits to purchase an additional amount of term insurance. The amount of term insurance that can be purchased is calculated based on an estimate of the excess credits that will be available at the end of that year. This is typically found in a convertible rider.

 

Term Rider

A rider which can be attached to some whole life policies to provide extra coverage in the form of term insurance.

 

Term-Certain Annuity

Is an annuity which makes pre-determined periodic payments over a fixed number of years. See Annuity Certain.

 

Terminal Funded Group Plans

Are the reserves under an annuity contract for benefits accumulated outside of the contract, usually with another plan. This could be a defined benefit retirement plan that has been terminated.

 

Third Party Administrator

Is an outside group or individual that performs administrative functions, such as processing claims or employee retirement plans for an insurance company.

 

Title Insurance

Is an insurance that indemnifies real estate owners in case clear ownership of a property is challenged by the discovery of faults in the title. It is purchased by a mortgager for the benefit of a mortgagee.

 

Tort

Is a legal term denoting a wrongful act resulting in injury or damage for which the injured party is entitled to compensation and on which a civil court action or legal proceeding may be based.

 

Total Death Benefit

Is the total amount of insurance coverage that is required or purchased, including both permanent and term life insurance coverage.

 

Total Disability

Is the inability of an individual to perform all essential functions of his or her occupation or, in some more extreme instances, any form of occupation as a result of a physical or mental impairment.

 

Total Fund Operating Expenses

Are the investment management fee and other expenses that are deducted on a daily basis from variable Universal Life policy values. These charges will vary from fund to fund.

 

Transfers

Is the moving of units of a Net Accumulation Value from one sub-account to another.

 

Trusteed Plan

 
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