Lapse

The expiration of a right or privilege when one party does not live up to its obligations during the time allowed.

Last In First Out (LIFO)

This refers to a method used to distribute cash value withdrawals for universal life policies where the withdrawals are treated as first coming out of interest and are considered taxable income.

Liabilities

A claim on the assets of a company or individual to satisfy a debt.

Life Annuity

An annuity that makes regular (e.g., monthly, quarterly, etc.) income payments for the life of a person (the annuitant). The annuitant cannot outlive the payments. Upon his/her death, however, all income payments cease and there are no beneficiary benefits.

Life Estate

A form of property ownership, also known as a life interest, giving the holder (the life tenant) an interest in the property to possess, use, and enjoy the property, or income from the property, for the duration of their life. … Continued

Life Expectancy

The number of years a person is expected to live as determined by actuaries using mortality (actuarial) tables This information is used to calculate annuity payments, life insurance premiums, and annual minimum distributions from IRAs.

Life Insurance

A legal contract between an insurance company and an owner/insured to provide protection against adverse financial consequences of the death of an individual in the form of payment to a beneficiary.

Life Insurance Trust

An agreement that establishes a trust for the designated beneficiary(ies) of a life insurance policy. Upon the death of the insured, the trust is legally obligated to pay the death benefit proceeds in the manner specified in the trust agreement.

Life Insurance Underwriting

The process by which an insurance company examines, accepts, or rejects insurance risks so as to charge the proper premium for the coverage and to spread the risk among a pool of insureds in a manner that is both fair … Continued