New York Life

Glossary

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Elimination/Waiting Period
Days at the beginning of a Period of Care on which Eligible Charges must be incurred for care covered under this Policy, before benefits will be paid. These days need not be consecutive, but they must all occur within a single Period of Care. Days in a Period of Care for which you received care or services of a kind covered both under this Policy and by Medicare will count toward meeting the Waiting Period.

Endorsement
An amendment to a life insurance or annuity policy, which alters the provisions of the initial contract.

Endow
With a life insurance policy, that point when the policy's guaranteed cash value equals the initial death benefit. At that time, the policy is said to mature or endow and the policyowner may receive the full face amount, often in cash. With whole life policies, policies often endow at age 100.

Enhanced Beneficiary Benefit Rider (EBB)³
If you select this optional rider, your beneficiaries may receive additional money to help them offset expenses that may arise as a result of your death, such as tax obligations. The benefit is calculated as a percentage of the earnings in your policy when you die, adjusted for withdrawals. There is a charge for this rider, which is deducted from your policy quarterly. For Fixed Deferred Annuities, the charges are discontinued after your 25th policy anniversary. The Enhanced Beneficiary Benefit Rider may only be selected when you purchase your policy, and it cannot be cancelled. This rider is not available if the annuitant or owner is over the age of 70. This rider is only available for certain Non-Qualified and Tax-Qualified plans, as specified on the application.

Enhanced Spousal Continuance Rider (EBB)³
This rider is automatically included if you elect the Enhanced Beneficiary Benefit Rider. (It may not be purchased separately.) This rider enables your spouse, if he or she is the sole primary beneficiary, to continue your policy upon your death as the new owner, at a potentially higher value that reflects the realization of any amount that would be payable under the Enhanced Beneficiary Benefit Rider. This rider is included for certain Non-Qualified and Tax-Qualified plans, as specified on the application.

Entity Purchase Agreement
In business transfer plans, a buy-sell agreement whereby the business, rather than an individual owner, assumes the obligation to purchase a deceased or disabled owner's interest in the business. Additionally, the business entity also purchases (and is the beneficiary of) any life insurance used to fund the plan.

Equity
As a principle of insurance, equity refers to fair and impartial treatment, a standard of fairness applied in establishing premiums, dividends, and policy values. It is based on the premise that all insureds with similar characteristics will be categorized under the same underwriting classification, pay the same premium, and receive the same dividends and policy values. Additionally, in connection with a policy's cash values and policy loan indebtedness, the policyowner's equity is the portion of cash value remaining to the policyowner after deduction of all indebtedness from loans or liens secured by the policy.

Estate
The assets owned by an individual at the time of his death.

Estate Planning
A process addressing the orderly handling, administration and distribution of your estate upon your death. Depending on the size of your estate and your objectives, estate planning may involve estate creation and conservation for heirs; the limiting of estate shrinkage; and the creation of adequate liquidity to pay estate settlement costs (including probate, debt repayment and estate taxes). Life insurance can be used to help provide money to meet estate planning objectives.

Estate Settlement
The process of distributing a deceased's estate, first paying all existing debts and taxes and transferring the remainder to one's heirs.

Estate Shrinkage
The amount by which the value of an estate can be depleted during the estate settlement process due to probate costs, estate taxes and other expenses.

Estate Transfer
The process of distributing the assets of an estate, either during an individual's lifetime or after death.

Evidence of Insurability
Proof that you are insurable. Such evidence is generally obtained through statements on your application regarding your health, avocations and financial condition. In most cases, a medical examination is required.

Exclusion
A policy provision indicating a circumstance or event, such as an act of war, that would cause the benefit to be denied.

Exclusion Ratio
The exclusion ratio is the ratio of the total investment in the contract (normally the gross premium cost) to the total expected return under the contract. If the annuity is a life annuity with a refund or period-certain guarantee, a special adjustment must be made to the investment in the contract. The exclusion ratio is applied to each annuity payment to find the portion of the payment that is excludable from gross income. If the annuity starting date is after December 31, 1986, the exclusion ratio is applied to the payments received until the investment in the contract is fully recovered; thereafter, any payments received are fully includable in income.

Executor
That person or entity appointed to carry out or "execute" the provisions of a will. The executor has a number of responsibilities and bears a degree of legal liability.

Extended Term Insurance
Due to an unpaid premium, the coverage provided by your policy(ies) has changed to Extended Term Insurance. Any insurance benefits provided by riders (such as accidental death benefit or waiver of premiums) have ended. However, because your policy had accrued cash value, you have limited coverage based on the “Non-Forfeiture Benefit” or “Options Upon Lapse” terms of your contract. Under that provision the policy’s cash value was used to purchase extended term insurance for a specific period of time. Because life insurance is a valuable asset, we hope you consider reinstating your policy, if eligible, as soon as possible. For more information you may contact your agent, or call one of our Customer Service Representatives at 1-800-695-9873 for assistance.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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