With flexible-premium life insurance policies, this is the recommended premium to help assure that the policy will not terminate.
Taxable Gain represents the interest and earnings credited under a deferred annuity. When annuity proceeds are paid to the owner or beneficiary, the gain is taxed as ordinary income.
Postponement of taxes on gain. With annuities and qualified retirement plans, earnings are tax-deferred until received.
Anything upon which no income tax is imposed, such as proceeds from a life insurance policy.
Taxpayer ID Number
Your Social Security number or tax identification number, which must be provided to a mutual fund company to avoid back-up withholding.
(See "Qualified Plan.")
Tax-Sheltered Annuity (TSAs)
(See "Section 403(b) Plan.")
Ten-Day Free Look
A consumer protection right, the ten-day free look is the time period after an insurance policy's delivery to the insured when the policy can be reviewed by the consumer and if not satisfied for any reason, returned for a full refund of premiums paid. The policy is then considered void from the beginning.
Section 1035 of the Internal Revenue Code allows a tax-free exchange of one insurance policy or annuity for another of a similar type and value. See Replacement.
The act of changing a convertible term life insurance policy to a cash value policy with the equivalent amount of coverage, without evidence of insurability. This locks in the premium rate and provides permanent coverage.
Life insurance purchased for a limited period of time (such as one year, five years, ten years, etc.), after which coverage expires without value (or, if renewable, can be renewed for a higher premium). While the initial cost for term insurance is lower than that for a comparable permanent life insurance policy at a given age, the cost of coverage increases over time (while the premium for a permanent policy generally remains level).
Term to Age_______
A form of life insurance that continues until the insured reaches a specific age, such as 65.
Having left a will. (Also see "Intestate.")
Total Accumulation Value
The value on the specified "as of date". Upon surrender of this policy, this value may be reduced by a surrender charge, policy fee, or outstanding loan.
Total Cash Value
After the free look period, or after we receive your policy delivery receipt, whichever is later, the Cash Value of the policy is the sum of the Accumulation Value in the Separate Account, the value in the Fixed Account and the value in the Loan Account. A number of factors affect your policy’s Cash Value, including but not limited to:
- The amount and frequency of premium payments;
- The investment experience of the Investment Divisions you choose;
- The interest credited on the amount in the Fixed Account;
- The amount of any partial withdrawals you make (including any charges you incur as a result of a partial withdrawal); and
- The amount of charges we deduct.
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