| Show COMMON INSURANCE TERMS technical expressions used by agents translated into plain english A level premium Is a premium which Is the same at every payment that is which becomes no grea er as the policy holder grows older says world s work the reserve Is the excess amount charged in the early years of level premium policies to offset the failure to increase the premium during the later years this reserve Is invested by the company and the proceeds from it makes up the deficiencies in the later premium payments the annual surplus Is the erces amount paid by the policy holders above the sum paid out in death claims and in expenses of management plus the interest earned by the reserve above the percentage of the require ments dividends are the portion of the surplus divided among policy holders deferred are dividend that are not distributed among the policy holders annually but are held by the company and paid to the policy holder at longer periods usually ac years A surrender Is the act of a polac holder in giving up his policy tor consideration from the company the surrender value or cash sur render value of a policy Is the amount the company agrees to pay if the policy holder surrenders his pol icy this Is less than the sum that he has paid in premi ims A participating policy Is one en titling the policy holder to share in an dividends that the company man pay A policy Is on that gives the holder no right to dial an annuity lg muney paid back an dually to a policy holder at stated in after a certain date in con sider atlon of the money that he ha paid into the company installment policies return prem alums lums gold bonds and other arrangements are varieties of annu aties in combination with life ansur ance A tontine policy Is one on which the holder receives nothing it he fall to keep up his premium till he flies term insurance is insurance tor e specified number of years the amount tor which the policy holder Is insured is paid only in case he dies before the expiration of the agreed term renewable Hene wable term insurance is tern insurance with the additional privilege at renewal of the policy at the end ol 01 the first term or succeeding terms 0 fears without further medical exam nation |
