On traditional life products, a change in policy status caused by the policyowner's failure to pay the premium by the end of the grace period. The policy will either terminate without value or fall under one of the non-forfeiture options. On universal life contracts, termination of the policy is caused by insufficient value in the policy to pay the next month's mortality and expense charge.

The percentage of insurance (face amount) lost by the company (due to lapse) in a given year to total face amount at the beginning of the year.

Use of factors other than medical to evaluate the risk. There are usually facts that increase the risk of accident, such as hazardous occupations and avocations.

Refers to a "blended" policy, structured with a larger proportion of term than whole life insurance.

An illustration of a policy's future values that includes the premium, cash value, and insurance amounts, as well as annuity payment amounts at retirement.

Transfer of personal property through a will.

A company that maintains policy reserves according to the standards established by the insurance laws of the various states.

A premium that remains the same, not increasing with the insured's age, throughout all the premium payment years of the contract.

One of Northwestern Mutual's level premium, term insurance policies that provides protection for 20 years or until age 70, whichever comes first. Premiums are scheduled to increase once after ten years and then remain level for the duration of the contract.

One of Northwestern Mutual's level premium, term insurance policies that provides protection for 20 years or until age 70, whichever comes first.

An annuity in which payments are guaranteed to be paid at regular intervals for the life of the annuitant.

A life annuity that guarantees payments will continue for a specified number of years. If the annuitant dies before the period certain has expired, payments will be made to a beneficiary for the duration of the period certain.

Trust beneficiary who receives income for his or her lifetime. Also known as income beneficiary.

An international organization of professional life insurance communicators, whose membership includes persons with responsibilities in the fields of advertising, company communications, marketing, public relations, and sales promotion.

The average number of years of life remaining to a number of people of a given age according to a given mortality table.

A settlement option, or payment plan, that guarantees the beneficiary of a life insurance policy or annuity contract regular payments for life.

A product which provides indemnification for the economic loss caused by a person's death. The indemnification is made possible by spreading the cost of the financial loss over a large group of people who are exposed to the same risk.

A research organization, based in Hartford, CT, that conducts research on behalf of its life and health insurance member companies.

A trust that uses the proceeds of a decedent's life insurance policy as its principal.

An independent association that provides college-level education in insurance and insurance management subjects for students from life insurance companies around the world. The Life Office Management Association offers the FLMI diploma.

An independent, non-profit, nationwide life insurance sales training organization. It is a professional designation-granting institution offering an education program emphasizing skills building.

A designation awarded to students who have successfully completed the required LUTC courses.

In a disability insurance contract, this clause limits coverage for a specific ailment or condition, usually by use of a later beginning date, or a shorter period for maximum benefit, or both.

A whole life insurance policy with a guaranteed premium paying period under age 100, the most common being premiums to age 65.

Highlighted text on a Web page that connects to another Web page or file. Clicking on a link sends your browser to the location of the highlighted text.

For mutual funds, the ability to cash in all or part of a fund's shares on any business day and receive their current value (which may be more or less than their original cost).

Benefits available to owners of life insurance contracts while the insured is still living. This term may refer to the availability of policy loans and collateral assignments, but it is sometimes used to refer to advances on policy proceeds taken in the case of terminal illness.

A trust established during the grantor's life; also called an inter vivos trust.

Document that provides instructions to physicians, health care providers, family and courts as to what life-prolonging procedures are desired if an individual becomes terminally ill or incapacitated.

A mutual fund with shares sold at a price that includes a sales charge -- typically 4% to 8% of the net amount indicated. A load implies that the fund purchaser receives some investment advice or other service worthy of the charge.

The premium of a net asset value, generally 6% to 8-1/2%, charged by open-end investment companies to cover sales commissions and all other distribution costs on the sale of new shares. Normally incurred only on purchase.

The amount added to net premiums to cover the company's operating expenses and contingencies. Loading includes, among other things, the cost of securing new business, collection, and general management expenses.

Borrowing from the insurer and securing the amount of the loan by the cash value in the life insurance policy. If the insured dies when there is an outstanding loan balance, the amount of the loan and any unpaid interest will be deducted from the proceeds.

The amount that can be borrowed from the insurance company, using the policy cash value as collateral.

A plan designed to cover the insured's long-term care (nursing home) costs. Long-term care insurance includes coverage for medical, social and/or personal care services required by a person with a chronic illness or disability over a long period of time. Designed to help maintain independence, these services may be provided by in the home, the community or in nursing homes.

A one-time deposit to purchase additional paid-up insurance. Can be made at issue and/or after issue on CompLife policies. Evidence of insurability may be required for after-issue lump sum purchases.