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Glosary of Life Insurance Terms
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SEGLIService Employees Group Life Insurance, which is issued to members of the armed forces while they are in the service. After separation it is convertible to individual policies from certain private insurers.
Salary Savings Insurance (Deductions or Allotment)Insurance issued to an individual employee whose employer agrees to deduct the premiums from his paychecks and submit them to the insurer.
Sales RepresentativesSee Special Agent.
Savings Bank Life InsuranceLife Insurance sold by mutual savings banks. Allowed only in a few states, such as New York, Connecticut, and Massachusetts.
Schedule "Q"See "Q" Schedule.
Scheduled Premium Variable Life InsuranceA whole life policy which features a fixed, level premium and a minimum guaranteed face amount. The performance of the policy is dependent on the separate account.
Secondary BeneficiaryThe second person named to receive benefits upon the death of an insured if the first-named beneficiary is not alive or does not collect all the benefits before his or her own death. See also Contingent Beneficiary.
Self-Funded PlanPlan of insurance where an employer, which has fairly predictable claim costs, pays the claims rather than an insurance company. See also Administrative Services Only.
Settlement OptionsThe various methods for the payment of the proceeds or values of a Life Insurance policy that may be selected in lieu of a lump sum.
Single Premium PolicyA Life Insurance policy paid for in one single premium in advance rather than in annual premiums over a period of time.
Society of Actuaries (SA)An association of actuaries organized in 1948 as the successor to the Actuarial Society of America and the American Institute of Actuaries. It grants the designation Associate of the Society of Actuaries upon completion of five examinations and Fellow of the Society of Actuaries upon the completion of five additional examinations.
Sole Proprietorship InsuranceLife and Health Insurance that handles the business continuity problems peculiar to a sole proprietorship. Such insurance, for instance, could be used to enable the heirs of the sole proprietor to bring the value of the business back to the level where it was prior to the death of the owner.
Spendthrift ClauseA clause in most Life Insurance policies which prevents the creditors of a beneficiary from claiming any of the benefits payable to him before he actually receives the money. The purpose of this clause is to keep those to whom he is in debt from taking legal action to require the insurer to pay the proceeds directly to them.
Split Dollar CoverageAn arrangement under which an employer pays that part of the premium that equals the annual increase in the cash value of a policy, while the employee pays the rest. Under assignment upon the death of the employee, the employer recovers the total of its payments from the proceeds of the policy, with the remainder going to the employee's beneficiary.
Split Dollar PlanA method of purchasing life insurance whereby the employer and employee jointly purchase the policy, pay premiums and share in the policy's benefits.
Split Life InsuranceA combination of Installment Annuity and Term Insurance under which the amount of annuity consideration (premium) paid determines the amount of one-year renewable Term Insurance an annuitant can purchase and place on the life of anyone designated.
Standard Provisions(1) Provisions prescribed by state law that must appear in all policies issued in that jurisdiction.
(2) Provisions adopted by the NAIC to apply to group Life Insurance as minimum protection. They are required by law in most states.
(3) Formerly, a set of prescribed provisions regulating the operating conditions of a Health Insurance policy required by law in most jurisdictions between about 1912 and 1950. They are now superseded by uniform provisions for Individual Accident and Health Insurance policies which contain an NAIC model bill. These have been enacted in virtually all jurisdictions.
Standard RiskA risk that is on a par with those on which the rate has been based in the areas of health, physical condition, and morals. An average risk, not subject to rate loadings or restrictions because of poor health.
Statement of Policy InformationFor Universal Life policies, this document is prepared at the end of each year giving complete information on all transactions affecting the policy, such as premium paid, current death benefit, interest credited, loans outstanding, monthly charges, and cash surrender value.
Step-rate PremiumPremium is increased at times specified in the policy, based on a predetermined attained age, or number of policy years in force.
Straight Life PolicySee Ordinary Life Policy.
Substandard RiskSee Impaired Risk.
Supplemental ContractA rider usually relating to the method of settlement of the proceeds of a Life Insurance policy.
SurrenderTo give up a Whole Life policy. The insurer pays the insured the cash value which the policy has built up if it is surrendered.
Surrender ValueSee Cash Surrender Value.
Survivorship AnnuitySee Reversionary Annuity.
Survivorship BenefitsFunds available to pay an annuitant who survives longer than statistically expected from premiums paid by annuitants who died before they had collected amounts equal to their contributions.
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