Glossary

Optional Benefit
A rider or additional provision you can add to your life insurance policy on an elective basis usually by paying an additional premium. Examples include Waiver of Premium and Accidental Death Benefit riders.

Ordinary Life Insurance
Also known as whole life and straight life insurance, the type of life insurance that continues during the whole of the insured's life as long as premiums are paid. It features a fixed level premium, fixed death benefit and a fixed, guaranteed rate of cash value accumulation. Ordinary life, along with term life, is one of the original types of life insurance, and is still very much in use today.

Original Age Term Conversion
With some term policies that can be converted to permanent coverage, the company agrees to set the premium rate for the permanent coverage at the original age of the insured. As part of the conversion, the policyowner then pays all back premiums to present. The advantage is that future premiums are at the lower-age rate, which will be less than if the conversion took place at the insured's attained age.

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