Glossary

Term	Definition
Age Next Birthday	Insured's age at a particular time with addition of 1 year. For example, take a person whose birthday falls on 1/1/1980. His age would be 30 on 1/1/2010. His age next birthday would be 31.
Benefits	The amount payable by the insurance company to a claimant, assignee or beneficiary under each coverage.
Exclusions	Specific conditions or circumstances listed in the policy for which the policy will not provide benefit payments.
Joint Parent	The joint parent is the second parent covered by certain benefits under the policy. This is usually referring to juvenile applications.
Life Assured	The life assured is the individual upon whose life payment of the benefits under the policy depends.
Policy Document	A booklet sent to the policy owner indicating explanation of the benefits covered.
Premium	The price of the insurance protection for a specific risk for a specified period of time.
Proposal Form	A signed statement of facts made by a person applying for insurance and then used by the insurance company to decide whether or not to issue a policy. The proposal form becomes part of the insurance contract when the policy is issued.
Proposer	The proposer is the individual who selects benefits for the life assured. The proposer will be the legal owner of the policy in the event that coverage commences.
Rated Policy	Sometimes called an "extra risk" policy, an insurance policy issued at a higher-than-standard premium rate to cover the extra risk where, for example, the insured has impaired health or a hazardous occupation.
Reinsurance	Assumption by one insurance company of all or part of a risk undertaken by another insurance company.
Substandard Risk	An individual, who, because of health history or physical limitations, does not measure up to the qualification of standard risk.
Underwriter	The company employee who decides whether or not the company should assume a particular risk.
Underwriting	The process of selecting risks for insurance and determining in what amounts and on what terms the insurance company will accept the risk.