This glossary is arranged in alphabetical order. Click on a letter in left column or scroll down to search.
< W >
Waiver of Premium
This is an option available to the applicant for life insurance, disability insurance, and critical illness insurance that sets certain conditions under which the insurance company without the payment of premiums will keep an insurance policy in full force. Very specifically, a life insured would have to become totally disabled through injury or illness for a period of six months before the benefit kicks in. When it does, the insurance company retroactively pays premiums from the beginning of the disability until the time the insured is able to perform some form of regular activity.
Whole Life Insurance
Life insurance that is kept in force for a person's whole life as long as the scheduled premiums are maintained. All Whole Life policies build up cash values. Most Whole Life policies are guaranteed as long as the scheduled premiums are maintained. The variable in a Whole life Policy is the dividend, which could vary depending on how well the insurance is managing its investments and corporate expenses. If the company is doing well and the policies are not experiencing a higher mortality than projected, premiums are paid back to the policyholder in the form of dividends. Policyholders can use the cash from dividends in many ways. The three main uses are: it can be used to lower or vanish premiums, it can be used to purchase more insurance or it can be used to pay for term insurance.
A will is a legal document, which sets out your wishes regarding the administration and distribution of your estate and gives powers to your Executor to carry out those wishes. It may also be used to express burial and funeral instructions, make anatomical gifts and designate a guardian and conservator for minor or incompetent children. Your Will does not take effect until you die so until then, you are free to deal with your assets and change the terms of your Will or revoke it completely as long as you are mentally competent. Changes in your family or legislation relating to taxation, wills and estates can have an impact on your Will so it is important to review it on a regular basis to make sure that it is up to date and still reflects your wishes and speaks from the moment immediately before death. A will is automatically revoked upon marriage unless the will specifically states that the will is made in contemplation of marriage. All wills are open to public scrutiny.
Back to top