Term Life Insurance Glossary
T
Temporary Life Insurance Agreements
Legal agreements between an insurer and a proposed insured that provide a guaranteed amount of temporary life insurance coverage for a specific period of time, usually the underwriting period.
Also known as interim insurance agreements and temporary insurance receipts.
Ten-day Free Look
Term Life Insurance
Life insurance under which the benefit is payable only if the insured dies during a specified period.
For descriptions of traditional permanent (whole) life products see continuous-premium whole life insurance, graded-premium whole life insurance, and joint whole life insurance policy. For descriptions of nontraditional whole life products see universal life insurance and variable life insurance.
Total Disability
A disability that meets the definition in a disability income policy and that entitles the insured to receive full disability income benefits. When a disability begins, it is typically considered a “total disability” if it prevents an insured person from performing the essential duties of his or her regular occupation. Under many insurance policies, the definition of total disability changes at the end of a specified period after the disability begins, usually two years. Thereafter, insureds are considered totally disabled only if their disabilities prevent them from working at any occupation for which they are reasonably fitted by education, training, or experience.
See also disability.
Trust Agreement
In a trusteed pension plan, the contract between the plan sponsor and the trustee that describes the trustee’s authority and responsibilities for investing and administering plan assets. Trust agreements are also found when group insurance is provided through a multiple-employer trust (MET).
Twisting
A prohibited insurance sales practice that occurs when an agent induces a policyowner to cancel an insurance policy and use the cash value of that policy to buy a new policy, when doing so is not in the policyowner’s best interests.
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