Life Insurance and Annuities

25 Mode of Premium Payment —The frequency of premium payments during the policy year. Premium payments can usually be made on annual, semi-annual, quarterly, or monthly mode. Mortality and Expense (M&E) — The fee the insurance company charges you to provide you with a lifetime income, and your beneficiaries with a death benefit should you die during the accumulation phase. Mortality Table — A statistical table showing the death rate (probability of death) for each age. Nonforfeiture Options — A provision in the policy that allows the policyowner to choose how the cash value of the policy will be used if the policy is surrendered or lapses due to nonpayment of premium. Non-Qualified Annuity — An annuity that is funded with after-tax dollars. Ownership — All rights, benefits, and privileges under a policy controlled by the owner, who is usually the insured. Ownership may be transferred or assigned to someone else by written request of the current owner. Paid-Up Insurance — A life insurance policy where all premiums have already been paid, with no further premium payment due. Participating Insurance — Insurance on which the policyowner is entitled to share in the surplus earnings of the company through dividends, which reflect the difference between the premium charged and the actual earnings and costs of providing coverage.