| A | B |
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| Term | Definition |
| Actuaries | Mathematicians employed by insurers to collect and analyze risk data. |
| Annuities | A contract which protects against the risk of living longer than expected. They provide a guaranteed life income to protect against the risk of depleting retirement funds. |
| Application | The form filled out by the applicant that includes information about the proposed insured's health history and background. The applicant's statements made on the application are representations. |
| Beneficiaries | The named individuals or entities designated by the policyowner to receive the policy proceeds. |
| Cash Value | A type of life insurance policy that pays out upon the policyholder's death, and also accumulates value during the policyholder's lifetime; also known as permanent life isnurance. Whole life, variable life and universal life are all types of cash-value life insurance. |
| Casualty Insurance | It is a form of insurance, which protects against the risk of legal liability for injury, death, disability, damage and destruction to property. |
| Exposure | It is the condition of being prone to loss due to a hazard or uncertain event. |
| Group Life Insurance | An insurance plan typically purchased by employers and offered to employees; most inexpensive type of insurance. |
| Indemnity | To restore a financial loss ("put you back where you were") prior to the occurrence of the loss. |
| Life Insurance | Insurance policy designed to protect against the risk of premature death; Payments made to beneficiaries (family) if an individual dies |
| Moral Hazards | Tendencies towards increased risk. |
| Morbidity | In health insurance, the rate at which accident, sickness, disability, or death will occur. |
| Mortality | In life insurance, the rate at which a specific population dies. |
| Permanent Life Insurance | An umbrella term for life insurance plans that do not expire and combine a death benefit with a savings portion. This savings portion can build a cash value - against which the policy owner can borrow funds, or in some instances, the owner can withdraw the cash value to help meet future goals.The two main types are whole life and universal life |
| Physical Hazard | Physical characteristics which raise the loss potential. |
| Speculative Risk | Risk that present a chance for loss or gain, such as gambling. These types of risk are not insurable. |
| Temporary Life Insurance | Life insurance is coverage that has an expiration date and is not guaranteed to last over an insured’s entire life. This type of insurance is relatively less expensive than other life insurance |
| Term Life Insurance | A life insurance policy with a set duration limit (temporary) on the coverage period. Benefits will only be paid if insured dies during the policy term |
| Underwriting | The risk selection and classification process |
| Universal Life | An adjustable benefit life insurance that has a flexibile premium and accumulates cash value. Considered to be 'interest-sensitive' since the current interest paid will fluctuate periodically with changes in the economy |
| Wavier | Giving up a right, claim or privilege |
| Whole Life Insurance | Life insurance policy that provides coverage for the whole (entirety) of the insured's life; develops a cash value after the third year. Often referred to as 'permanent' |
