New York Life



Paid Through Date
Indicates the date that the policy's premiums are paid through and to maintain it's in force status.

Paid-Up Additions
Amounts of life insurance purchased by policy dividends and added to the original life insurance policy to increase the death benefit and cash values. These additions do not require the further payment of premiums. With variable life insurance, paid-up additions can also be purchased by making additional premium payments.

Paid-Up Insurance
Life insurance on which no further premiums are required, yet the policy will remain in force for life (unless the policy is terminated by the policyowner).

An employee who meets the participation requirements for the plan and who is enrolled in the plan.

Participating Insurance
A life insurance policy whose owners are eligible to share in the distribution of dividends paid out of the surplus of the company.

The person or entity paying the premiums on a life insurance policy.

Payor Benefit/Clause
In life insurance, an optional policy provision (generally used on juvenile insurance policies) whereby, should the payor die before a certain time (such as the insured's 21st birthday), future premiums are waived until that date.

Payroll Deduction
A convenient method of purchasing insurance and other benefits through work by having premiums deducted by the employer and forwarded to the insurance company.

Per Capita
Literally, "by the person." Referring to life insurance beneficiary designations, per capita means designated individuals only share in the proceeds on an individual basis. Example: There are four named beneficiaries, with each to receive one-quarter of the proceeds. If one dies, each of the survivors receives one-third. This approach to naming beneficiaries has the advantage of being specific and clear. However, it can also accidentally remove intended beneficiaries. For instance, if three sons, all with families, are named beneficiaries on a per capita basis, and one dies, the deceased son's family receives no proceeds. (See also "per stirpes.")

Permanent Life Insurance
A term used to describe various life insurance policies in force throughout an insured's lifetime provided premiums are paid. It also generally refers to insurance that accumulates cash value. Examples of permanent life insurance are whole life, universal life or variable universal life.

Personal Insurance
In life insurance, coverage purchased to meet individual and family needs, rather than for business purposes.

Per Stirpes
Literally, "by the branch." Referring to life insurance beneficiary designations, per stirpes means life insurance policy proceeds are to be distributed as indicated among the named beneficiaries. If one beneficiary dies, that person's share then goes to the living descendants of that individual. This approach to naming beneficiaries has the advantage of not inadvertently disinheriting family members. However, it can accidentally include unintended beneficiaries if the intended beneficiary dies. (See also "per capita.")

Plan Type
In Account Summary, this designation indicates the type of contract that has been established (e.g., IRA, TSA, Non-Qualified, etc.).

In insurance, the written document or contractual agreement between the insurer and the policyowner, including all endorsements and riders. Also known as the "contract" or insurance policy.

Policy Anniversary
In insurance, the anniversary of the date the policy was issued.

Policy Assignment
A legal transfer of one person's interest in an insurance policy to another person.

Policy Date
The date on which coverage goes into effect.

Policy Dividend
(See "Dividend.")

Policy Fee
In traditional (non-variable) life insurance, a flat, one-time charge, included in the premium, to help cover the one-time costs involved in issuing a policy. With variable policies, periodic charges assessed against accounts to cover costs.

Another term for "policyowner," the individual or entity having ownership of the policy, along with all policyowner rights.

Policy Lifetime Maximum Benefit
The Policy Lifetime Maximum Benefit is the amount that the policy will pay over the policy lifetime. This Benefit is expressed in years, which is used to calculate the maximum dollar value that the policy will pay. For example, Nursing Home Daily Benefit of $210 with 5 Years (or 1, 825 days) Policy Lifetime Maximum Benefit results in $383,250 value. Except as otherwise expressly provided in the policy, all of the benefits paid under the policy count toward the Policy Lifetime Maximum Benefit.

Policy Loan
(See "Loan.")

Policy Loan Interest
The amount of interest that has accrued on an outstanding loan balance. Loan interest is billed annually on the policy anniversary. Any interest that is not paid is added to the loan balance and could negatively affect the status of the policy.

Policy Purchase Option
Guarantees the option to purchase additional insurance at certain ages and special life events, without having to provide evidence of insurability.

Policy Maximum Benefit
The maximum dollar amount of benefits to be paid during the lifetime of the Long-Term Care Insurance policy.

Policy Owner
Another term for "policyholder," the individual or entity having ownership of the policy, along with all policyowner rights.

Policy Period
This is the term during which your policy is in force. With a term life insurance policy, for example, the policy period has a starting and ending date, such as from midnight on September 12, 2000 to midnight on September 11, 2010. Many term policies can be renewed prior to expiration by paying the renewal premium. Also sometimes called "policy term."

Policy Reserves
The funds that an insurer sets aside specifically for the purpose of meeting its policy obligations, including the payment of proceeds in the future.

Policy Status
The current standing of your policy. If the policy status shows as “No Coverage – Reinstate Now” coverage can be regained by making a payment.

Policy Term
(See "policy period.")

A characteristic of group insurance in which the employee or group member can continue the insurance coverage even if he or she terminates employment or leaves the group. The coverage is said to be portable.

Preferred Risk
In life insurance, a person whose physical condition, occupation, personal habits and hobbies and other characteristics indicate the potential for strong longevity. If you are a preferred risk, you may be eligible for a lower premium than a person who is a standard or rated risk.

In insurance, the periodic payment required to keep a specific policy in force. Your cost of insurance. The single payment made to fund an annuity. The sum of total payments made to fund an annuity inclusive of the initial premium payment and subsequent premium payment(s).

Premium Amount
Amount of payment required to maintain policy coverage. Premiums may be paid at several different frequencies such as annual, semi-annual, quarterly, and via Check-O-Matic bank draft. Please note that there may be different rates associated with each billing frequency.

Premium Mode
(See "Mode.")

Premium Loan
In life insurance, a loan taken from the policy's cash value to pay the premium due. Many policies also have an "automatic premium loan", provision that is activated to pay overdue premium.

Premium Offset Plan
Premium Offset Plan is the method of paying premiums due by withdrawing an equivalent amount of dividend values to cover the entire premium amount. The benefit of this plan is that premiums are no longer paid using out-of-pocket funds, as long as there are sufficient funds to continue to fund this arrangement.

Premium Rate
The price per unit or per thousand dollars of coverage for insurance.

Premium Tax
A state tax collected from an insurance company as a percentage of premiums paid.

Present Value
An amount which, if invested at a certain rate of interest, will accumulate to a specified sum at a future date.

Primary Beneficiary
The person or entity who, at the insured's death, has the first right to receive life insurance proceeds. If the primary beneficiary is deceased, proceeds are paid to the secondary beneficiary.

Principal Sum
In insurance, the lump sum payable for accidental loss of life, dismemberment, or loss of sight.

A court-supervised process of validating a will or establishing distribution of assets of a decedent.

In life insurance, the net amount of money payable by the company at the insured's death or at the maturity of the policy. It is sometimes referred to as the death benefit.

Profit-Sharing Plan
A form of qualified, employer-sponsored retirement plan under which a portion of the profits are set aside for distribution to the employees. In many cases, the employees make tax-deductible distributions, which may be matched by the company.

Proposed Insured
The person named in a life insurance application as the individual whose life is to be insured.

For investment products (including variable life insurance and variable annuity products), this is a formal written document which explains fees, features, portfolio investment objectives and other details. You must be given a copy of the prospectus before purchasing mutual funds, variable life, and variable annuity products and you should read it carefully before you invest or send money.

A term or condition of an insurance policy as contained in the policy clauses.

P.S. 58 Tables
Federal government premium rate tables for one-year term insurance policies. When life insurance is provided as an employee benefit, these tables are used to determine the value of the economic benefit provided by the insurance.

Pure Endowment
A life insurance contract that provides payment only upon survival of the insured to a certain date and not in the event of that person's prior death.


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