Life Insurance and Annuities

26 Policy — The printed document issued to the policyowner by the company stating the terms of the insurance contract. Policy Year — A one-year period starting on the day and the month the policy was issued. The first policy year starts on the date of issue, and ends on the day before the policy’s first anniversary date. Premium — The payment a policyowner is required to make to an insurance company to purchase insurance coverage and to keep the policy in force. Qualified Annuity — Annuity that is funded with pre-tax dollars. Rated Policy —A policy issued with an additional premium to cover the extra risk involved if an insured has impaired health, a hazardous occupation or hobby, or is a private pilot. Reinstatement — The restoring of a lapsed or surrendered policy to full force and effect. The company requires evidence of insurability and payment of all amounts necessary, including interest, to put the policy into the condition it would have been in had the lapse or surrender not occurred. The company is not obligated to reinstate a policy. Rider — A provision added to a policy that provides additional benefits, usually accompanied by a corresponding premium increase or change. Settlement Option —The manner in which the insured or beneficiary may choose to have the policy proceeds paid.