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Definitions - T

Tax-Deferral
Postponing the payment of income taxes until some point in the future, often at retirement. Generally, the cash value growth inside life insurance is eligible for deferral, unless the amount of cash received through surrender exceeds the policy's tax basis.

Tax-Payer Identification Number (TIN)
The policy owner's Social Security number. The insurer must have a certified tax-payer identification number to avoid backup withholding when there is taxable gain.

Ten-Year Level Term
A Term Life insurance policy with a level death benefit where the premium remains the same for ten years.

Term Conversion
Many Term policies come with conversion rights guaranteeing that, for a specified period of time, the policy can be converted to a permanent plan for the equivalent amount of coverage, without having to provide additional evidence of insurability.

Termination
Termination of a policy upon the policy owner's failure to pay the premium within the grace period.

Term Life Insurance
A life insurance plan that provides death benefit protection only and for a specified period of time (term). The policy pays benefits only if the insured dies during the term.

Tertiary Beneficiary
In life insurance, a beneficiary designated as third in line to receive the proceeds or benefits if the primary and secondary beneficiaries do not survive the insured.

Third-Party Owner: A policyowner who is not the insured.

Thirty-Year Level Term
A Term Life insurance policy with a level death benefit where the premium remains the same for thirty years.

Trust
A legal instrument allowing one party to control property for the benefit of another.

Transfer for Value
Transfer of the ownership of a life insurance contract for valuable consideration.

Trust
A legal instrument allowing one party to control property for the benefit of another.

Twenty-Year Level Term
A Term Life insurance policy with a level death benefit where the premium remains the same for twenty years.

Twenty-Five Year Level Term
A Term Life insurance policy with a level death benefit where the premium remains the same for twenty-five years.

Twisting
The practice of inducing by misrepresentation, or inaccurate or incomplete comparison, a policy holder in one company to lapse, forfeit or surrender his insurance for the purpose of taking out a policy in another company.

Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65. Premiums for these policies are higher since the premium payments are made during a shorter period.

Quick Life Insurance Terms Glossary

(some definitions taken from the National Association of Insurance Commissioners' Life Insurance Buyers Guide)

LIFE IS COMPLICATED....
BUT TERM LIFE INSURANCE DOES NOT HAVE TO BE.

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