New York Life

Glossary

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

Rate, Premium
The cost of a stated unit of insurance, generally given in terms of price per thousand dollars of coverage (such as $1.25 per $1,000).

Rated (up)
An underwriting term used to describe a policy or applicant considered to be a higher-than-average risk. (See also "Preferred Risk," "Standard" and "Declined.")

Rebating
The giving of any valuable consideration (cash, commissions, sports tickets, etc.) to a prospective owner as an inducement to buy life insurance. Rebating by an insurance agent is illegal in most states.

Receipt
A written acknowledgement of a payment or delivery of a document. In insurance, receipts are required as proof that initial premiums have been paid, your policy has been delivered or that you have received other important documents (buyer's guide, prospectus, etc.)

Redemption
The sale of mutual fund shares, either for cash or as part of an exchange for shares of another fund. Redemptions may generate a capital gain or loss.

Reduced Paid-Up Insurance
A non-forfeiture option (when the policyowner elects to stop paying premiums) that uses the policy's accumulated cash values to continue the original insurance policy, but for a reduced face amount, with no further premiums required.

Registered Representative
A person who has passed an FINRA examination, and is authorized to discuss and present securities products, including mutual funds, variable life insurance and variable annuities. A registered representative receives commissions on sales of securities products.

Reinstatement
The resumption of coverage under a policy that has lapsed. This is a policyowner right that allows you to restore a lapsed policy within a specified period of time by providing evidence of insurability and paying back premiums, plus interest. The policy cannot have been surrendered for its cash value.

Renew
To continue a term policy for another period of time.

Renewable Term Insurance
Term life insurance under which the policyowner has the right, at the end of the term, to continue the coverage for another term at the premium for his or her attained age, without the need to submit evidence of continued insurability.

Replacement
In life insurance, the act of substituting a new policy for another policy already in force. This practice is regulated in most states because, in many instances, it is not considered in the insured's best interests to make such a switch, especially when one cash value policy is replaced with another cash value policy.

Representations
When you complete a life insurance application, it is presumed that the information you provide is substantially true to the best of your knowledge. However, that information is not warranted as exact in every detail. (See also "Warrants.")

Representative
(See "Agent.")

Required Minimum Distribution
With qualified retirement plans (such as traditional IRAs), the distribution that you are required to begin taking from your policy or account beginning no later than April 15 of the year following the year during which you reach age 70 1/2.

Rescission
Repudiation of a contract for cause, such as fraud, misrepresentation or duress.

Reserve
The combined funds held by an insurance company which, together with future premiums and an assumed rate of interest, will be available to pay all contractual obligations as they fall due.

Restrictions
Limitations or exclusions in a policy.

Return of Premium Upon Death Rider (ROPD)
The ROPD benefit provides the return of all premiums that were paid over the life of the policy, less any claims paid, if the Insured dies while the policy and the Return of Premium benefit are in-force.

Reverse Split Dollar
Generally used in business situations, a split-dollar arrangement whereby premiums are shared (split) by the employer and the employee. The employee is entitled to the cash value and the business receives the majority of the death benefit.

Revocable Beneficiary
In life insurance, a beneficiary whose rights in the policy are subject to the policyowner's reserved right to revoke or change the beneficiary designation at any time and without the consent of the beneficiary.

Rider
An attachment or amendment to an insurance policy, generally one that expands or adds benefits (such as Waiver of Premium or Accidental Death Benefit provisions).

Right of Assignment
In insurance, the policyowner's right to assign a policy to another, often as a means to secure a debt or obligation.

Risk
The chance of loss. In life insurance, the probability of death. Regarding securities products, the term refers to the potential gain or loss involving investment performance. Other related risks include the risk of inflation eroding your savings' purchasing power over time and the risk of outliving your retirement savings.

Rollover
Regarding retirement plans, the tax-free transfer from one qualified plan funding vehicle to another if certain conditions are met. See your tax advisor for more information.

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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