Lapse to Loan Definitions

A B C D E F G H I J K L M N O P R S T U V W Y
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Lapse: The termination of an insurance policy due to non payment of premiums.
Level Premium Term Insurance: A term life insurance policy whose premiums remain the same over the term of the policy.
Liabilities: An obligation of one party to another for damages resulting from the actions of another.
Life Expectancy: A factor used in determining insurance rates. Statistically, it is the length of time that a person is expected to live based upon tables that have been calculated reflecting different physical and mental conditions and history.
Life Settlement: The sale of an existing life insurance policy to a third party for an agreed upon compensation.
Limitations: Certain specified provisions in the insurance contract that limit the amount of coverage and or the exclusion of certain situations or premises.
Loss: The actual damage incurred under the coverage provisions of the contract.
Loss Reserve: The amount of money that an insurance carrier must, by law, have available to pay for incurred losses.
Lump Sum: A form of payment of proceeds of an insurance policy that is paid as a result of an incurred and covered loss. It is paid in a single payment as opposed to a series of installments.
Loan (Policy Loan): Amount of money available to the insured person to borrow from his policy under the provisions of the contract.