Dearborn National

Individuals

Glossary

  • Contingent Beneficiary

    Person or persons named to receive proceeds in case the primary beneficiary is not alive.

  • Effective Date

    The date when an insurance policy goes into force or becomes active.

  • Evidence of Insurability (EOI)

    Statements or proof of a person’s physical condition affecting the acceptance for insurance.

  • Guarantee Issue

    The right to purchase insurance without physical examination; the present and past physical condition of the applicant are not considered.

  • Health Savings Account (HSA)

    A tax-advantaged medical savings account available to taxpayers in the U.S. who are enrolled in a high-deductible health plan (HDHP).

  • High-Deductible Health Plan (HDHP)

    A health insurance plan with lower premiums and higher deductibles than a traditional health plan.

  • Open Enrollment

    A period of time each year when you can sign up for insurance.

  • Pre-existing Condition

    A health or physical condition that existed prior to the effective date of an insurance policy.

  • Primary Beneficiary

    A beneficiary that is first in line to receive the named benefits.

  • Waiver of Premium

    A clause that waives the policyholder’s obligation to pay any further premiums should he or she become seriously ill or disabled.

Accelerated Death Benefit

A benefit that allows for the early payment of some portion of the policy’s face amount should you suffer from a terminal illness or injury.

Accident Insurance

Pays cash directly to you for the unexpected costs of an accidental injury.

Accidental Death & Dismemberment Insurance

Pays additional benefits if a death or injuries occur as the result of an accident.

Ancillary

Refers to benefits that are used to supplement group health insurance.

Basic Life Insurance

Basic Life insurance is the simplest form of Life insurance, and it is typically provided by your employer.

Beneficiary

The person named in the policy to receive the insurance proceeds when you pass away. Anyone can be named as a beneficiary.

Benefit

Total expenditures for insurance services paid to you or on your behalf.

Claim

A request made by you for insurer remittance of payment due to loss incurred and covered under the policy agreement.

Claimant

The person who files a claim.

Contingent Beneficiary

Person or persons named to receive proceeds in case the primary beneficiary is not alive. Also referred to as a secondary or tertiary beneficiary.

Conversion

Allows you to convert your insurance coverage when it is being reduced or terminated for any reason other than non-payment of premiums.

Critical Illness Insurance

Provides cash directly to you for the unplanned expenses of a critical illness.

Deductible

A specified amount of money that you must pay before an insurance company will pay a claim.

Effective Date

The date when an insurance policy goes into force or becomes active.

Employer-Paid

Insurance coverage paid for by your employer.

Evidence of Insurability (EOI)

Statements or proof of your physical condition affecting the acceptance for insurance.

FMLA

The Family and Medical Leave Act of 1993 (FMLA) is a United States federal law requiring covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons.

Group Insurance

Covers a defined group of people or the employees of an employer.

Guarantee Issue

The right to purchase insurance without physical examination; the present and past physical condition of the applicant are not considered.

Health Savings Account (HSA)

A tax-advantaged medical savings account available to taxpayers in the U.S. who are enrolled in a high-deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit.

High-Deductible Health Plan (HDHP)

A health insurance plan with lower premiums and higher deductibles than a traditional health plan. Being covered by an HDHP is a requirement for having a health savings account (HSA).

Individual Insurance

Insurance you buy on your own—not through an employer or association.

Insured

A person or organization covered by insurance.

Insurer

A person or company that underwrites an insurance risk; the party in an insurance contract undertaking to pay compensation.

Life Insurance

Pays out a sum of money to a designated beneficiary when you pass away.

Long-Term Disability (LTD) Insurance

Provides a steady income to help cover expenses during an extended illness or after a disabling accident.

Open Enrollment

Period of time each year when you can sign up for insurance.

Partial Disability

Any type of disability in which you are unable to perform at full physical capacity. This is usually due to an on-the-job injury or due to illness.

Portability

Allows you to continue (“port”) your insurance coverage when your employment is being voluntarily or involuntarily terminated.

Pre-existing Condition

A health or physical condition that existed prior to the effective date of an insurance policy.

Premium

The annual payment from you to the insurance company to keep the policy active.

Primary Beneficiary

A beneficiary that is first in line to receive the named benefits.

Short-Term Disability (STD) Insurance

Provides a steady income to help cover expenses during a short-term illness or after a disabling accident.

Supplemental Life Insurance

Additional life insurance coverage on top of your Basic Life insurance.

Total Disability

Because of a sickness or injury, you are unable to work in your own or any occupation for which you are suited by training, education, or experience.

Vision Insurance

Health and wellness plans designed to reduce your costs for routine preventive eye care (eye exams) and prescription eyewear (eyeglasses and contact lenses).

Voluntary Insurance

Voluntary life insurance is an optional benefit offered by employers, where an employee pays a monthly premium in return for cash paid to beneficiaries upon death.

Waiver of Premium

A clause that waives the policyholder’s obligation to pay any further premiums should he or she become seriously ill or disabled. It allows people to benefit from an insurance policy, even when they cannot work.