--- title: "Life Insurance Glossary: 241 Terms Defined | Epic Life" description: "Plain-English definitions of 241 life insurance, annuity, underwriting, licensing, commission and compliance terms, for families and for agents. Each one sourced." url: https://epicline.preview.multisites.ai/glossary publisher: Epic Life Group apply: https://epicline.preview.multisites.ai/apply quote: https://epicline.preview.multisites.ai/get-a-quote --- # The life insurance glossary. 241 terms, defined in plain English for families and for agents. Each definition links to its source. Search the glossary No terms match. Try a shorter word. ## 1 [1099 Independent Contractor](https://epicline.preview.multisites.ai/glossary/1099-independent-contractor) A 1099 independent contractor is a worker who is paid for services without taxes withheld and who receives Form 1099-NEC rather than a W-2. The worker runs their own business. ## A [Accelerated Death Benefit Rider](https://epicline.preview.multisites.ai/glossary/accelerated-death-benefit-rider) An accelerated death benefit rider lets the insured receive part of the death benefit while alive if diagnosed with a qualifying condition, such as a terminal illness. It is also called a living benefit. [Accelerated Underwriting](https://epicline.preview.multisites.ai/glossary/accelerated-underwriting) Accelerated underwriting is a fast approval process that uses data, such as prescription records, MIB reports, and motor vehicle records, to decide on coverage, often without a medical exam for qualifying applicants. [Accidental Death and Dismemberment (AD&D)](https://epicline.preview.multisites.ai/glossary/accidental-death-and-dismemberment) Accidental death and dismemberment (AD&D) insurance is coverage that pays a benefit if the insured dies in a covered accident or loses a limb, sight, or other body function due to an accident. It does not pay for death from illness. [Accidental Death Benefit Rider](https://epicline.preview.multisites.ai/glossary/accidental-death-benefit-rider) An accidental death benefit rider pays an extra amount, often equal to the base death benefit, if the insured dies from a covered accident. It is added to a life insurance policy for a modest premium. [Accumulation Phase](https://epicline.preview.multisites.ai/glossary/accumulation-phase) The accumulation phase is the period in a deferred annuity when the owner adds money and the value grows, before income payments begin. It ends when the owner takes withdrawals or starts annuity payments. [Advance Commission](https://epicline.preview.multisites.ai/glossary/advance-commission) An advance commission is commission a carrier pays before the customer has paid all the premium it is based on. If the policy ends early, the agent may owe part back. [Advance Directive](https://epicline.preview.multisites.ai/glossary/advance-directive) An advance directive is a legal document that states your health care wishes, or names someone to decide for you, if you cannot speak for yourself. A living will and a health care proxy are common types. [Advertising Compliance](https://epicline.preview.multisites.ai/glossary/advertising-compliance) Advertising compliance means making sure insurance ads, mailers, scripts, and web pages follow the law. Statements must be truthful, clear, and not misleading, and some materials need carrier or state approval. [Affordability](https://epicline.preview.multisites.ai/glossary/affordability) Affordability in life insurance means whether the premium fits your budget over the long term without strain. A policy that lapses from cost provides no protection. [Age at Issue (Age Last/Nearest Birthday)](https://epicline.preview.multisites.ai/glossary/age-at-issue) Age at issue is the insured's age when the policy starts, and it helps set the premium. Carriers count it as age last birthday or age nearest birthday, depending on the plan. [Aged Lead](https://epicline.preview.multisites.ai/glossary/aged-lead) An aged lead is a prospect record that was generated days, weeks, or months ago and has been contacted before or not at all. Aged leads cost less than fresh leads but usually convert at a lower rate. [Agency](https://epicline.preview.multisites.ai/glossary/agency) An agency is a business licensed to sell insurance through its agents. It can hold carrier contracts, employ or contract with producers, and in many states needs its own entity license. [Agency Owner](https://epicline.preview.multisites.ai/glossary/agency-owner) An agency owner runs an insurance agency as a business, holds or arranges carrier contracts, and may recruit and manage agents. The owner is responsible for licensing and compliance. [Agent Portal](https://epicline.preview.multisites.ai/glossary/agent-portal) An agent portal is a secure website where an agent manages business with a carrier or agency. Tasks often include quoting, applications, policy status, commissions, and training. [Agent vs Broker](https://epicline.preview.multisites.ai/glossary/agent-vs-broker) An agent usually represents an insurance company, while a broker usually represents the buyer. In practice, many licensed producers act as both, and state law defines the terms. [Annuitization](https://epicline.preview.multisites.ai/glossary/annuitization) Annuitization is the process of converting an annuity's value into a stream of regular income payments. Payments may last for life or for a set number of years, depending on the option chosen. [Annuity](https://epicline.preview.multisites.ai/glossary/annuity) An annuity is a contract with an insurance company in which you pay a lump sum or a series of payments. In return, the insurer agrees to make payments to you, either right away or at a future date. [Appointment](https://epicline.preview.multisites.ai/glossary/appointment) An appointment is a carrier's formal record that an agent may sell its products in a state. The carrier files it with the state, and it requires a valid license first. [As-earned Commission](https://epicline.preview.multisites.ai/glossary/as-earned-commission) As-earned commission is paid only as the customer pays each premium, rather than in a lump sum up front. It carries little chargeback risk but pays more slowly. [Assignment of Benefits](https://epicline.preview.multisites.ai/glossary/assignment-of-benefits) Assignment of benefits is a written transfer of the right to receive policy proceeds to another party. In funeral planning, the owner may assign proceeds to a funeral home to pay the bill. [Attending Physician Statement (APS) (APS)](https://epicline.preview.multisites.ai/glossary/attending-physician-statement) An attending physician statement is a report or set of medical records that a carrier requests from your doctor so it can review your health history during underwriting. ## B [Background Check](https://epicline.preview.multisites.ai/glossary/background-check) A background check is a review of a person's criminal and sometimes financial history. States and carriers use it to decide whether to license or contract an agent. [Beneficiary](https://epicline.preview.multisites.ai/glossary/beneficiary) A beneficiary is the person or organization the policy owner names to receive the death benefit when the insured person dies. A policy can name one or several beneficiaries and can split the payout by percentage. [Best Interest Standard](https://epicline.preview.multisites.ai/glossary/best-interest-standard) The best interest standard is a rule from the NAIC annuity model regulation. It requires agents to act in the consumer's best interest when recommending annuities, and not put their own pay first. [Bonus](https://epicline.preview.multisites.ai/glossary/bonus) A bonus is extra pay a carrier or agency gives an agent for meeting goals, such as sales volume or a contest. It is separate from base commission. [Book Of Business](https://epicline.preview.multisites.ai/glossary/book-of-business) A book of business is the set of policies and customers an agent has sold and serviced. It is the source of renewals and future sales. [Brokerage General Agency (BGA)](https://epicline.preview.multisites.ai/glossary/bga) A BGA, or brokerage general agency, is an agency that serves independent agents by offering access to many carriers, case help, and commission arrangements. It works like a wholesale layer between agents and carriers. [Build Chart](https://epicline.preview.multisites.ai/glossary/build-chart) A build chart is a table that compares height and weight to acceptable ranges for each underwriting class. Carriers use it to decide whether an applicant's build supports a class. [Burial Insurance](https://epicline.preview.multisites.ai/glossary/burial-insurance) Burial insurance is a common name for small whole life policies that pay for burial, funeral, and related costs. The term is used the same way as final expense insurance. The benefit goes to a named beneficiary. [Burial Plot](https://epicline.preview.multisites.ai/glossary/burial-plot) A burial plot is a space in a cemetery set aside for a casket or cremated remains. Buying a plot is separate from paying a funeral home. ## C [Call Coaching](https://epicline.preview.multisites.ai/glossary/call-coaching) Call coaching is feedback on recorded or live sales calls from a manager, trainer, or software tool. The goal is to improve how an agent listens, explains coverage, and handles questions. [Call Recording](https://epicline.preview.multisites.ai/glossary/call-recording) Call recording is the saving of a phone call as an audio file. Insurance agencies record calls to train agents, prove what was said, and meet carrier or compliance needs. [Call Recording Consent](https://epicline.preview.multisites.ai/glossary/call-recording-consent) Call recording consent is the permission needed to record a phone call. Federal law requires one party's consent, and some states require all parties to agree, which is called two-party or all-party consent. [Captive Agent](https://epicline.preview.multisites.ai/glossary/captive-agent) A captive agent sells the products of one insurance company, or a small group of related companies, under an exclusive agreement. The company usually controls the agent's products and rules. [Career Agent](https://epicline.preview.multisites.ai/glossary/career-agent) A career agent is an agent who works mainly for one insurance company, often as an employee or in a closely tied role, and sells that company's products. Setups vary by company. [Carrier Appointment](https://epicline.preview.multisites.ai/glossary/carrier-appointment) A carrier appointment is the approval an insurance company gives an agent to sell its policies in specific states. The carrier registers the agent with each state's insurance department. [Carrier Compliance](https://epicline.preview.multisites.ai/glossary/carrier-compliance) Carrier compliance is the set of rules an insurance company requires its agents to follow, in addition to state and federal law. Examples are approved materials, training, call practices, and application steps. [Cash Surrender Value](https://epicline.preview.multisites.ai/glossary/cash-surrender-value) Cash surrender value is the amount a carrier pays you if you cancel a permanent policy, which is the cash value minus any surrender charges and unpaid loans. [Cash Value](https://epicline.preview.multisites.ai/glossary/cash-value) Cash value is the savings part of a permanent life insurance policy. It grows over time at a rate set by the policy and can be borrowed against or withdrawn, subject to the contract terms. [Chargeback](https://epicline.preview.multisites.ai/glossary/chargeback) A chargeback is when a carrier takes back part of an agent's commission because a policy lapsed, was canceled, or was rescinded within a set period after issue. [Child Term Rider](https://epicline.preview.multisites.ai/glossary/child-term-rider) A child term rider adds term life coverage on the insured's children under a parent's policy. Coverage is usually a small amount and covers all eligible children for one extra premium. [Chronic Illness Rider](https://epicline.preview.multisites.ai/glossary/chronic-illness-rider) A chronic illness rider is an add-on that lets the insured access part of the death benefit early if a licensed health care practitioner certifies a chronic illness, usually the inability to perform daily living activities. [Close Rate](https://epicline.preview.multisites.ai/glossary/close-rate) Close rate is the share of sales conversations or presentations that end in a sale. It is a narrower measure than conversion rate, which can start at the lead stage. [Cold Call](https://epicline.preview.multisites.ai/glossary/cold-call) A cold call is an unsolicited call to a person who has not asked to be contacted and has no relationship with the caller. Telemarketing laws limit cold calls, and many are banned for numbers on the Do Not Call list. [Commission](https://epicline.preview.multisites.ai/glossary/commission) Commission is the pay an insurance agent earns from a carrier when a policy is sold and stays in force. It is usually a percentage of premium set by the carrier and the agent's contract level. [Commission Advance](https://epicline.preview.multisites.ai/glossary/commission-advance) A commission advance is an early payment of commission before the premiums it relates to are collected. It is the same idea as advance commission and can be reclaimed if the policy ends. [Commission Split](https://epicline.preview.multisites.ai/glossary/commission-split) A commission split is an agreement that divides a commission between two or more parties, such as two agents or an agent and an agency. The shares are set in writing. [Commission Spread](https://epicline.preview.multisites.ai/glossary/spread) Spread is the difference between two commission levels in a hierarchy, such as an upline's contract level minus the agent's level. The upline keeps it as an override. [Commission Statement](https://epicline.preview.multisites.ai/glossary/commission-statement) A commission statement is a report from a carrier or agency listing what an agent was paid, advanced, or charged back in a period. It is the record agents use to check their pay. [Contestability Period](https://epicline.preview.multisites.ai/glossary/contestability-period) The contestability period is the first two years after a policy starts, during which the carrier can review the application and deny a claim for a material misstatement. Many states set this limit. [Contingent Beneficiary](https://epicline.preview.multisites.ai/glossary/contingent-beneficiary) A contingent beneficiary is a backup who receives the death benefit only if every primary beneficiary has died or cannot be paid. It is also called a secondary beneficiary. [Continuing Education (CE)](https://epicline.preview.multisites.ai/glossary/continuing-education) Continuing education, or CE, is required coursework that licensed agents complete each renewal period to keep their licenses. Hours and topics are set by each state. [Contract Level](https://epicline.preview.multisites.ai/glossary/contract-level) A contract level is the percentage tier of a carrier's commission schedule that an agent is paid. A higher level means a larger share of the premium as commission. [Contracting](https://epicline.preview.multisites.ai/glossary/contracting) Contracting is the process of signing an agent up with an insurance carrier so the agent can sell and be paid on its products. It includes forms, a background review, and a commission agreement. [Conversion Rate](https://epicline.preview.multisites.ai/glossary/conversion-rate) Conversion rate is the share of contacts or leads that become customers. For an agent, it might be the percent of leads who end up with an issued policy. [Convertible Term](https://epicline.preview.multisites.ai/glossary/convertible-term) Convertible term is term life insurance that lets the owner switch to a permanent policy without a new medical exam. The conversion must happen within a set period and follows the carrier's rules. [Cost of Living Rider](https://epicline.preview.multisites.ai/glossary/cost-of-living-rider) A cost of living rider is an add-on that increases a life insurance policy's death benefit on a set schedule, often tied to inflation or a fixed percentage, so coverage keeps pace with rising costs. [Coverage Amount](https://epicline.preview.multisites.ai/glossary/coverage-amount) The coverage amount is the total death benefit you choose to buy. It should reflect your debts, your family's income needs, and final costs such as the funeral. [Cremation](https://epicline.preview.multisites.ai/glossary/cremation) Cremation is the reduction of a body to ashes by heat. Families may choose direct cremation, with no service, or a cremation with a memorial or funeral. [Critical Illness Rider](https://epicline.preview.multisites.ai/glossary/critical-illness-rider) A critical illness rider pays part of the death benefit early if the insured is diagnosed with a covered condition, such as a heart attack, stroke, or cancer. The list of conditions is set in the rider. [CRM](https://epicline.preview.multisites.ai/glossary/crm) A CRM, or customer relationship management system, is software that stores contacts, call notes, follow-up tasks, and sales status in one place. Insurance agencies use it to manage leads and clients. ## D [Death Benefit](https://epicline.preview.multisites.ai/glossary/death-benefit) A death benefit is the money a life insurance carrier pays to the beneficiary when the insured dies. It is usually paid as a lump sum and is generally income tax free to the beneficiary. [Decline](https://epicline.preview.multisites.ai/glossary/decline) A decline is a carrier's decision not to offer life insurance to an applicant after underwriting. The carrier judges the risk too high for the plan applied for. [Decreasing Term](https://epicline.preview.multisites.ai/glossary/decreasing-term) Decreasing term is term life insurance whose death benefit falls over the policy term, often on a set schedule. Premiums usually stay level while the amount of coverage shrinks. [Deferred Annuity](https://epicline.preview.multisites.ai/glossary/deferred-annuity) A deferred annuity is an annuity contract that delays payments until a future date chosen by the owner. Until then, the money can grow during an accumulation phase, tax deferred. [Dialer](https://epicline.preview.multisites.ai/glossary/dialer) A dialer is software that places phone calls for agents automatically, so they spend less time typing numbers. Types include power, progressive, and predictive dialers, and some can leave prerecorded messages. [DIME Method (DIME)](https://epicline.preview.multisites.ai/glossary/dime-method) The DIME method is a simple way to estimate coverage by adding Debt, Income, Mortgage, and Education costs. The total is a starting point for the coverage amount. [Direct Carrier Contract](https://epicline.preview.multisites.ai/glossary/direct-carrier-contract) A direct carrier contract is an agreement between an agent and an insurance company without a marketing organization in between. The carrier sets the commission schedule. [Direct Mail Lead](https://epicline.preview.multisites.ai/glossary/direct-mail-lead) A direct mail lead is a prospect who answered a mailed advertisement, usually by returning a reply card or calling a number on the mailer. The person asked for information, which makes the lead warmer than a cold contact. [Disability Income Rider](https://epicline.preview.multisites.ai/glossary/disability-income-rider) A disability income rider pays a monthly benefit to the insured if disability prevents them from working. It is added to a life insurance policy and is separate from the death benefit. [Dividend](https://epicline.preview.multisites.ai/glossary/dividend) A dividend in life insurance is a share of a carrier's surplus paid to owners of participating policies. It is not guaranteed and can change each year based on the carrier's results. [Do Not Call (DNC)](https://epicline.preview.multisites.ai/glossary/dnc) DNC stands for Do Not Call. It refers to lists, national and company-level, of phone numbers that telemarketers generally may not call without a legal exception or permission. [Downline](https://epicline.preview.multisites.ai/glossary/downline) A downline is the group of agents recruited by and working under a given agent in a hierarchy. The agent above them is their upline. ## E [E-Application (e-app)](https://epicline.preview.multisites.ai/glossary/e-application) An e-application is a life insurance application completed and submitted electronically instead of on paper. Many carriers offer e-apps with built-in questions, checks, and electronic signatures. [E-Sign](https://epicline.preview.multisites.ai/glossary/e-sign) E-sign is short for electronic signature. Under the federal E-SIGN Act, an electronic signature can have the same legal effect as a handwritten one, if the signer agrees to use it. [Earn-out Period](https://epicline.preview.multisites.ai/glossary/earn-out-period) An earn-out period is the time over which advanced commission is considered fully earned. If the policy ends inside this period, a chargeback may apply to the unearned part. [Errors and Omissions Insurance (E&O)](https://epicline.preview.multisites.ai/glossary/e-o-insurance) E&O insurance, short for errors and omissions insurance, covers an agent against claims that a mistake or missed duty in their work harmed a client. It is a form of professional liability coverage. [Estate](https://epicline.preview.multisites.ai/glossary/estate) An estate is everything a person owns at death, including property, bank accounts, and investments, minus debts. It is handled under a will or state law. [Exclusive Lead](https://epicline.preview.multisites.ai/glossary/exclusive-lead) An exclusive lead is a prospect record sold to only one agent or agency. Because no one else gets the same contact, it usually costs more than a shared lead. ## F [Face Amount](https://epicline.preview.multisites.ai/glossary/face-amount) The face amount is the dollar amount of coverage stated on the policy. It is the base death benefit the carrier agrees to pay, before any loans, riders, or reductions. [Field Marketing Organization (FMO)](https://epicline.preview.multisites.ai/glossary/fmo) An FMO, or field marketing organization, is a company that works with carriers to build and support a network of agents. Term use varies, and many people treat it close to IMO or MGA. [Final Expense Insurance](https://epicline.preview.multisites.ai/glossary/final-expense-insurance) Final expense insurance is a small whole life policy designed to pay for funeral costs, burial or cremation, and related end-of-life bills. Face amounts are modest, and it is often sold to seniors without a medical exam. [Final Expenses](https://epicline.preview.multisites.ai/glossary/final-expenses) Final expenses are the costs that come up near the end of life, including funeral or cremation, burial, medical bills, and small debts. Final expense insurance is built to help pay them. [Fingerprinting](https://epicline.preview.multisites.ai/glossary/fingerprinting) Fingerprinting is a step in which an applicant gives fingerprints so a state can run a criminal history check. Many states require it as part of the producer license application. [First-year Commission](https://epicline.preview.multisites.ai/glossary/first-year-commission) First-year commission is the commission paid on premiums collected in the first policy year. It is usually the largest part of life insurance commission on a new sale. [Fixed Annuity](https://epicline.preview.multisites.ai/glossary/fixed-annuity) A fixed annuity is an insurance contract that earns a stated interest rate set by the insurer. The rate is guaranteed for a period, and the insurer promises a minimum interest rate for the life of the contract. [Fixed Indexed Annuity (FIA)](https://epicline.preview.multisites.ai/glossary/fixed-indexed-annuity) A fixed indexed annuity (FIA) is an annuity that credits interest based in part on the performance of a market index, with a minimum guarantee. The owner does not invest directly in the index. [Flat Extra](https://epicline.preview.multisites.ai/glossary/flat-extra) A flat extra is an added charge per $1,000 of coverage for a specific risk, such as a hazardous job or hobby. It is billed on top of the regular premium. [Free Look](https://epicline.preview.multisites.ai/glossary/free-look) Free look is the period after a policy is delivered during which the owner can review it and cancel for a refund of premiums. The length is set by state law and the policy, and often ranges from 10 to 30 days. [Free Look Period](https://epicline.preview.multisites.ai/glossary/free-look-period) A free look period is a set time after you receive a policy when you can cancel it and get a full refund of premiums. Length varies by state, often 10 to 30 days. [Free Withdrawal](https://epicline.preview.multisites.ai/glossary/free-withdrawal) A free withdrawal is a portion of an annuity that the owner can take out each year without paying a surrender charge. The allowed amount is stated in the contract, often a percentage of the account value. [Fresh Lead](https://epicline.preview.multisites.ai/glossary/fresh-lead) A fresh lead is a prospect record that was generated very recently, often within minutes or hours, and has not been worked yet. Fresh leads usually cost more and convert better than aged leads. [Full Contract](https://epicline.preview.multisites.ai/glossary/full-contract) A full contract is the highest commission level a carrier offers on its schedule for a given product. Agents with it receive the maximum share of premium that the carrier pays. [Fully Underwritten Life Insurance](https://epicline.preview.multisites.ai/glossary/fully-underwritten-life-insurance) Fully underwritten life insurance is coverage approved after a detailed review of the applicant's health, history, and records. It may include a medical exam, lab tests, and an attending physician statement. [Funeral Costs](https://epicline.preview.multisites.ai/glossary/funeral-costs) Funeral costs are the expenses for a funeral or other final arrangements, such as services, a casket or urn, a burial plot or cremation, and transport. Prices vary widely by provider and location. [Funeral Insurance](https://epicline.preview.multisites.ai/glossary/funeral-insurance) Funeral insurance is a popular name for a life insurance policy bought to pay funeral costs. It is usually a small whole life policy that pays a cash benefit to a beneficiary, not to a funeral home. [Funeral Trust](https://epicline.preview.multisites.ai/glossary/funeral-trust) A funeral trust is an arrangement in which money is set aside with a trustee to pay for funeral costs later. State law sets rules for how the funds are held and used. ## G [General Agent (GA)](https://epicline.preview.multisites.ai/glossary/ga) A GA, or general agent, is an agent or agency with a contract to represent an insurer in an area and often to recruit and manage other agents. Exact duties depend on the contract. [GLBA](https://epicline.preview.multisites.ai/glossary/glba) GLBA is the Gramm-Leach-Bliley Act, a federal law that requires financial institutions, including insurers and agents, to explain how they share customer data and to protect that data. [Grace Period](https://epicline.preview.multisites.ai/glossary/grace-period) A grace period is the extra time after a premium due date when the policy stays in force even though the payment is late. Many policies give 30 or 31 days. [Graded Death Benefit](https://epicline.preview.multisites.ai/glossary/graded-death-benefit) A graded death benefit is a payout that is only part of the face amount, or a return of premiums with interest, if the insured dies of natural causes in the first years. Full coverage starts after that waiting period. [Group Life Insurance](https://epicline.preview.multisites.ai/glossary/group-life-insurance) Group life insurance is a single policy that covers many people, usually employees of one company or members of an association. The employer or group holds the master policy, and each member receives a certificate. [Guaranteed Insurability Rider](https://epicline.preview.multisites.ai/glossary/guaranteed-insurability-rider) A guaranteed insurability rider is an add-on that lets the policy owner buy more coverage at certain ages or life events, such as marriage or the birth of a child, without a new medical exam. [Guaranteed Issue Life Insurance](https://epicline.preview.multisites.ai/glossary/guaranteed-issue-life-insurance) Guaranteed issue life insurance is coverage that accepts applicants without health questions or a medical exam. Approval is guaranteed within the age limits, but the face amount is small and a waiting period usually applies. ## H [Health Questions (Knock-Out Questions)](https://epicline.preview.multisites.ai/glossary/health-questions) Health questions are the application questions a carrier asks about medical history. Knock-out questions are the ones where a yes answer makes the applicant ineligible for that plan. [Hierarchy](https://epicline.preview.multisites.ai/glossary/hierarchy) A hierarchy is the chain of contracts that links an agent up through agencies or marketing organizations to a carrier. It decides who earns what from each sale. [HIPAA](https://epicline.preview.multisites.ai/glossary/hipaa) HIPAA is a federal law that sets privacy and security rules for protected health information held by health plans, providers, and their business associates. It also gives people rights over their health records. [Human Life Value](https://epicline.preview.multisites.ai/glossary/human-life-value) Human life value is an estimate of the worth of a person's future earnings to their family, used to size life insurance. It is based on income, years left to work, and discount rates. ## I [Inbound Call](https://epicline.preview.multisites.ai/glossary/inbound-call) An inbound call is a phone call that a consumer or prospect starts to a business. In life insurance sales, it usually means the person called in after seeing an ad, a mailer, or an online form. [Income Replacement](https://epicline.preview.multisites.ai/glossary/income-replacement) Income replacement is the goal of buying life insurance to replace the earnings a family would lose if the insured died. It is often a multiple of annual income. [Income Rider](https://epicline.preview.multisites.ai/glossary/income-rider) An income rider is an optional annuity feature that guarantees a stream of lifetime income, often based on an income base that grows at a stated rate. It usually costs an annual fee. [Independent Agent](https://epicline.preview.multisites.ai/glossary/independent-agent) An independent agent is licensed to sell products from more than one insurance company and is not tied to a single carrier. Most independent agents are contractors, not employees. [Independent Marketing Organization (IMO)](https://epicline.preview.multisites.ai/glossary/imo) An IMO, or independent marketing organization, is a company that recruits independent agents and gives them access to carrier contracts, training, leads, and support. It is not an insurance carrier. [Indexed Universal Life (IUL)](https://epicline.preview.multisites.ai/glossary/indexed-universal-life) Indexed universal life (IUL) is a universal life policy whose cash value earns interest based on the performance of a market index, such as the S&P 500. The policy owner does not invest directly in the index. [Insurance Fraud](https://epicline.preview.multisites.ai/glossary/fraud) Insurance fraud is a deliberate lie or omission meant to gain an unfair benefit from insurance. It can be committed by applicants, policyholders, agents, or others. [Insured](https://epicline.preview.multisites.ai/glossary/insured) The insured is the person whose life the policy covers. The death benefit is paid when the insured dies, and the insured's health, age, and habits drive underwriting and price. [Internal DNC List](https://epicline.preview.multisites.ai/glossary/internal-dnc-list) An internal DNC list is a company's own list of people who said they do not want to be called. Sellers must keep it and honor each request, even if the number is not on the national registry. [Issue Age Limit](https://epicline.preview.multisites.ai/glossary/issue-age-limit) An issue age limit is the youngest and oldest age at which a carrier will issue a given policy. Each plan and carrier set their own range. [Issued/Paid](https://epicline.preview.multisites.ai/glossary/issued-paid) Issued/paid is a status that means the carrier approved the policy, issued it, and received the first premium. Agents are usually credited for the sale and commission at this stage. ## L [Lapse](https://epicline.preview.multisites.ai/glossary/lapse) A lapse happens when a life insurance policy ends because the owner did not pay the premium by the end of the grace period. Coverage stops unless the policy is reinstated. [Lead Cost Per Acquisition](https://epicline.preview.multisites.ai/glossary/lead-cost-per-acquisition) Lead cost per acquisition is the total lead spend divided by the number of policies sold. It shows how much an agent pays in lead costs to earn one sale. [Legacy Planning](https://epicline.preview.multisites.ai/glossary/legacy-planning) Legacy planning is the process of deciding how your assets, wishes, and values pass to people and causes you care about. It often includes a will, beneficiaries, and insurance. [Level Premium](https://epicline.preview.multisites.ai/glossary/level-premium) A level premium is a payment that stays the same for the life of the policy or for a set period, such as a 20-year term. It does not rise as the insured gets older. [License Lapse](https://epicline.preview.multisites.ai/glossary/license-lapse) A license lapse happens when a producer license expires because the agent did not renew it on time. A lapsed agent cannot legally sell or be paid on new sales in that state. [License Reciprocity](https://epicline.preview.multisites.ai/glossary/license-reciprocity) License reciprocity means one state accepts an agent's license from another state when it issues a nonresident license. It reduces repeat exams and lets agents expand into new states faster. [License Renewal](https://epicline.preview.multisites.ai/glossary/license-renewal) License renewal is the periodic step of paying fees and meeting requirements, such as continuing education, to keep a producer license active. Each state sets its own cycle. [Life And Health License](https://epicline.preview.multisites.ai/glossary/life-and-health-license) A life and health license lets an agent sell life insurance and health products, such as accident and health policies. States may call the second line accident and health or sickness. [Life Insurance](https://epicline.preview.multisites.ai/glossary/life-insurance) Life insurance is a contract in which an insurer agrees to pay a death benefit to named beneficiaries when the insured person dies, in exchange for premium payments. Policy types, prices, and features vary by carrier and state. [Life-only License](https://epicline.preview.multisites.ai/glossary/life-only-license) A life-only license is a producer license limited to life insurance and, in many states, annuities. It does not allow the holder to sell health, auto, or home insurance. [Line Of Authority](https://epicline.preview.multisites.ai/glossary/line-of-authority) A line of authority is the type of insurance a license allows an agent to sell, such as life, accident and health, or property and casualty. A state lists each line on the license. [Live Transfer](https://epicline.preview.multisites.ai/glossary/live-transfer) A live transfer is a call that a lead vendor connects to an agent in real time, after a caller has shown interest. The agent speaks with the prospect right away instead of calling back later. [Long-Term Care Rider](https://epicline.preview.multisites.ai/glossary/long-term-care-rider) A long-term care rider is an add-on that lets the owner use part of a life insurance death benefit or an annuity's value to pay for long-term care expenses if specific conditions are met. ## M [Managing General Agent (MGA)](https://epicline.preview.multisites.ai/glossary/mga) An MGA, or managing general agent, is a person or firm that an insurer authorizes to manage part of its business. Model law defines it by powers such as underwriting or appointing agents. [Market Value Adjustment (MVA)](https://epicline.preview.multisites.ai/glossary/market-value-adjustment) A market value adjustment (MVA) is a change to the value of an annuity withdrawal, based on interest rate changes since purchase. It can raise or lower the amount received when money leaves the contract early. [Medical Debt](https://epicline.preview.multisites.ai/glossary/medical-debt) Medical debt is money owed for health care services, such as hospital stays, doctor visits, or treatment. It can end up with a collector if bills go unpaid. [MIB (Medical Information Bureau) (MIB)](https://epicline.preview.multisites.ai/glossary/mib) MIB is a membership organization that holds coded information from past life, health, and disability insurance applications. Member carriers check it to verify what an applicant has told them. [MIB Code](https://epicline.preview.multisites.ai/glossary/mib-code) A MIB code is a short number that stands for a medical condition or other risk fact reported by a carrier to MIB. Other member carriers see the code, not full medical details. [Misrepresentation](https://epicline.preview.multisites.ai/glossary/misrepresentation) Misrepresentation is a false or misleading statement about a material fact, made by an applicant or by an agent. In insurance, it can affect coverage, claims, and the agent's license. [Modal Premium](https://epicline.preview.multisites.ai/glossary/modal-premium) A modal premium is the payment amount for a chosen schedule, or mode, such as monthly, quarterly, or annual. Carriers often charge a small fee for more frequent payments. [Modified Death Benefit](https://epicline.preview.multisites.ai/glossary/modified-death-benefit) A modified death benefit limits the payout during an early period, often the first two or three years, if the insured dies of natural causes. After the period ends, the full face amount is paid. [Mortgage Protection Insurance](https://epicline.preview.multisites.ai/glossary/mortgage-protection-insurance) Mortgage protection insurance is life insurance bought to help a family pay off or keep paying a home loan if the insured dies. The term is a marketing name, not a distinct legal type of policy. [Multi-Year Guaranteed Annuity (MYGA)](https://epicline.preview.multisites.ai/glossary/multi-year-guaranteed-annuity) A multi-year guaranteed annuity (MYGA) is a fixed deferred annuity that guarantees one interest rate for a set number of years, usually from two to ten. It works like a certificate of deposit issued by an insurer. [MVR (Motor Vehicle Report) (MVR)](https://epicline.preview.multisites.ai/glossary/mvr) A motor vehicle report is a record of a person's driving history, including violations, accidents, and license status. Life insurance carriers may review it to judge risk. ## N [National Do Not Call Registry](https://epicline.preview.multisites.ai/glossary/national-dnc-registry) The National Do Not Call Registry is a federal list of phone numbers whose owners asked not to receive telemarketing calls. It is run by the Federal Trade Commission, and registration is free. [National Insurance Producer Registry (NIPR)](https://epicline.preview.multisites.ai/glossary/nipr) NIPR is the National Insurance Producer Registry, a nonprofit affiliate of the NAIC. It runs systems that help agents apply for and renew licenses and help carriers verify them. [National Marketing Organization (NMO)](https://epicline.preview.multisites.ai/glossary/nmo) An NMO, or national marketing organization, is a large marketing organization that serves agents and agencies across the country. It often sits above other IMOs or FMOs in the chain. [National Producer Number (NPN)](https://epicline.preview.multisites.ai/glossary/npn) An NPN, or National Producer Number, is a unique identifier assigned to an insurance agent or agency. It follows the producer in every state and stays the same for the whole career. [Needs Analysis](https://epicline.preview.multisites.ai/glossary/needs-analysis) A needs analysis is a review of a family's finances to find how much life insurance is needed. It looks at debts, income, expenses, assets, and goals. [Needs-Based Selling](https://epicline.preview.multisites.ai/glossary/needs-based-selling) Needs-based selling is a sales approach that starts by learning the family's goals, budget, and risks, then matches a product to those needs. The product is chosen after the questions, not before. [No-Exam Life Insurance](https://epicline.preview.multisites.ai/glossary/no-exam-life-insurance) No-exam life insurance is coverage issued without a medical exam. Types include simplified issue, guaranteed issue, and some accelerated underwriting programs. Each uses a different method to judge risk. [Nonforfeiture Options](https://epicline.preview.multisites.ai/glossary/nonforfeiture-options) Nonforfeiture options are choices a permanent policy owner has if premiums stop. They let the owner keep some value, such as cash, reduced paid-up coverage, or extended term coverage. [Nonresident License](https://epicline.preview.multisites.ai/glossary/nonresident-license) A nonresident license lets an agent who is licensed in a home state sell insurance to people in another state. The agent applies to each additional state and pays that state's fee. [Not Taken (NTO)](https://epicline.preview.multisites.ai/glossary/not-taken) Not taken, or NTO, means a policy was approved and issued but the applicant did not accept it or pay for it. The carrier closes the case and usually pays no commission, or takes it back. ## O [Objection Handling](https://epicline.preview.multisites.ai/glossary/objection-handling) Objection handling is the skill of listening to a prospect's concerns, such as price or timing, and answering them honestly. A good response solves the real concern and never misleads. [Outbound Call](https://epicline.preview.multisites.ai/glossary/outbound-call) An outbound call is a call that a business or agent places to a consumer. In insurance, outbound calling is limited by federal and state telemarketing rules, including Do Not Call lists and consent requirements. [Override](https://epicline.preview.multisites.ai/glossary/override) An override is extra commission an upline earns on the sales of agents beneath them. It is often the gap between the upline's contract level and the writing agent's level. ## P [Paid-Up Policy](https://epicline.preview.multisites.ai/glossary/paid-up-policy) A paid-up policy is a permanent life insurance policy where all required premiums have been paid. Coverage continues for life without any further premium payments by the owner. [Paramedical Exam](https://epicline.preview.multisites.ai/glossary/paramedical-exam) A paramedical exam is a brief health check done by a nurse or technician, often at your home or work, for a life insurance application. It usually includes height, weight, blood pressure, and blood and urine samples. [Participating Policy](https://epicline.preview.multisites.ai/glossary/participating-policy) A participating policy is a life insurance policy that may pay dividends to the owner. Whole life from mutual carriers is the common example, and the dividends are not guaranteed. [Persistency](https://epicline.preview.multisites.ai/glossary/persistency) Persistency is the share of policies that stay in force over time, usually measured at 13 months or longer. Higher persistency means fewer policies lapse. [Persistency Bonus](https://epicline.preview.multisites.ai/glossary/persistency-bonus) A persistency bonus is extra pay for an agent whose policies stay in force at or above a target rate. It rewards quality sales that do not lapse early. [Policy Delivery](https://epicline.preview.multisites.ai/glossary/policy-delivery) Policy delivery is the step where the issued policy reaches the owner, by mail or electronically. Delivery often starts the free look period and may require a signed receipt or the first premium. [Policy Loan](https://epicline.preview.multisites.ai/glossary/policy-loan) A policy loan is money you borrow from the carrier using your policy's cash value as collateral. The policy stays in force if you keep paying interest and the loan stays below the cash value. [Policy Owner](https://epicline.preview.multisites.ai/glossary/policy-owner) A policy owner is the person or entity with the legal right to control a life insurance policy. The owner can change beneficiaries, take loans, surrender the policy, and name a new owner. [Policy Replacement](https://epicline.preview.multisites.ai/glossary/replacement) Replacement means ending or changing an existing life insurance policy to buy a new one. State rules require disclosure and comparison so the buyer can make a clear choice. [Policy Tracking](https://epicline.preview.multisites.ai/glossary/policy-tracking) Policy tracking means following an application from submission to issue, delivery, and payment of commission. Agents use carrier portals and CRMs to see status and open requirements. [Policyholder](https://epicline.preview.multisites.ai/glossary/policyholder) A policyholder is the person or entity that holds the insurance contract and has the rights under it. In most cases the policyholder is the same as the policy owner and often the insured. [Postpone](https://epicline.preview.multisites.ai/glossary/postpone) A postponement is an underwriting decision to delay an offer until a later date, usually because of a recent illness, surgery, or pending test result. [Pre-licensing Education](https://epicline.preview.multisites.ai/glossary/pre-licensing-education) Pre-licensing education is the course study many states require before a person can take the insurance exam. Hours and approved providers vary by state and by license type. [Pre-Need Funeral Contract](https://epicline.preview.multisites.ai/glossary/pre-need-funeral-contract) A pre-need funeral contract is an agreement to pay for funeral goods and services in advance. The money may be held in a trust or backed by an insurance policy. [Pre-Need Insurance](https://epicline.preview.multisites.ai/glossary/pre-need-insurance) Pre-need insurance is a policy or contract sold through a funeral home to pay for specific funeral goods and services chosen in advance. The benefit usually goes to the funeral provider, not to the family. [Preferred](https://epicline.preview.multisites.ai/glossary/preferred) Preferred is an underwriting class just below preferred plus. It is for applicants in very good health, and it carries lower premiums than the standard classes do. [Preferred Plus](https://epicline.preview.multisites.ai/glossary/preferred-plus) Preferred plus is usually the best underwriting class a carrier offers. It is for applicants in excellent health with very good build, clean records, and no tobacco use, and it carries the lowest premium. [Premium](https://epicline.preview.multisites.ai/glossary/premium) A premium is the amount you pay to keep an insurance policy active. You can pay it monthly, quarterly, semiannually, or annually, depending on the carrier. [Premium Rate](https://epicline.preview.multisites.ai/glossary/premium-rate) A premium rate is the price a carrier charges per unit of coverage, often per $1,000, based on the insured's age, sex, class, and plan. The total premium comes from this rate. [Prescription History Check (Rx) (Rx)](https://epicline.preview.multisites.ai/glossary/prescription-history-check) A prescription history check is an underwriting step where the carrier reviews a database of past prescriptions filled by the applicant. It helps confirm health answers and find conditions. [Presentation](https://epicline.preview.multisites.ai/glossary/presentation) A presentation is the part of a sales call or meeting where the agent explains the recommended coverage, its cost, and its terms. It follows the needs discovery and comes before the application. [Primary Beneficiary](https://epicline.preview.multisites.ai/glossary/primary-beneficiary) A primary beneficiary is the first person or group in line to receive the death benefit. If the primary beneficiary is alive when the insured dies, that person is paid ahead of any contingent beneficiary. [Prior Express Written Consent](https://epicline.preview.multisites.ai/glossary/prior-express-written-consent) Prior express written consent is a signed agreement, on paper or electronic, in which a person allows a seller to send certain marketing calls or texts. It must be clear and name what the person agrees to. [Privacy Notice](https://epicline.preview.multisites.ai/glossary/privacy-notice) A privacy notice is a written statement that explains what personal information a company collects, how it uses and shares it, and what choices the customer has. Financial firms and insurers must provide one. [Probate](https://epicline.preview.multisites.ai/glossary/probate) Probate is the court-supervised process of proving a will, paying debts, and passing a dead person's assets to heirs. Rules and time frames vary by state. [Producer License](https://epicline.preview.multisites.ai/glossary/producer-license) A producer license is a state-issued credential that lets a person sell, solicit, or negotiate insurance. States issue it by line of authority, such as life, and the holder must follow that state's insurance laws. [Production Bonus](https://epicline.preview.multisites.ai/glossary/production-bonus) A production bonus is extra pay for reaching a set amount of sales or premium within a stated period. Carriers and agencies use it to reward volume. ## Q [Qualified vs Non-Qualified Annuity](https://epicline.preview.multisites.ai/glossary/qualified-vs-non-qualified-annuity) A qualified annuity is held inside a tax-advantaged retirement account, such as an IRA. A non-qualified annuity is bought with after-tax money. The difference changes how contributions, earnings, and withdrawals are taxed. [Quoting Engine](https://epicline.preview.multisites.ai/glossary/quoting-engine) A quoting engine is software that estimates premiums from several carriers using details such as age, sex, tobacco use, coverage amount, and state. Agents use it to compare options during a call. ## R [Rated Policy](https://epicline.preview.multisites.ai/glossary/rated-policy) A rated policy is a life insurance policy issued at a higher premium than standard because of health or other risk. The extra cost is called a rating. [Reduced Paid-Up](https://epicline.preview.multisites.ai/glossary/reduced-paid-up) Reduced paid-up is a nonforfeiture option that uses a policy's cash value to buy a smaller, fully paid permanent policy. No more premiums are due. [Reinstatement](https://epicline.preview.multisites.ai/glossary/reinstatement) Reinstatement is the process of restoring a lapsed life insurance policy to active status. The owner usually pays past-due premiums and may need to show the insured is still insurable. [Release](https://epicline.preview.multisites.ai/glossary/release) A release is a written permission from an upline or marketing organization for an agent to leave and contract elsewhere. It may also mean a release of a carrier contract. [Renewal Commission](https://epicline.preview.multisites.ai/glossary/renewal-commission) Renewal commission is the smaller commission paid in later years while a policy stays in force and the customer keeps paying. Not every product or carrier pays one. [Replacement Regulation](https://epicline.preview.multisites.ai/glossary/replacement-regulation) Replacement regulation is a set of state rules that apply when a new life insurance policy or annuity replaces an existing one. Agents must give disclosures and notify the old insurer. [Resident License](https://epicline.preview.multisites.ai/glossary/resident-license) A resident license is the producer license issued by the state where an agent lives or keeps a principal place of business. It is usually the agent's home state license and the base for all other state licenses. [Return of Premium (Graded)](https://epicline.preview.multisites.ai/glossary/return-of-premium) Return of premium in a graded plan means the carrier refunds the premiums paid, often with interest, instead of the full death benefit if the insured dies of natural causes during the waiting period. [Return of Premium Rider](https://epicline.preview.multisites.ai/glossary/return-of-premium-rider) A return of premium rider refunds some or all premiums paid for a rider or term coverage if the insured outlives the covered period. It is added for an extra premium. [Return of Premium Term](https://epicline.preview.multisites.ai/glossary/return-of-premium-term) Return of premium term is term life insurance that refunds the premiums paid if the insured outlives the policy term. It costs more than standard term for the same death benefit. [Rider](https://epicline.preview.multisites.ai/glossary/rider) A rider is an optional add-on to an insurance policy or annuity that changes or adds benefits for an extra cost. It becomes part of the contract once attached. [Risk Class](https://epicline.preview.multisites.ai/glossary/risk-class) A risk class is the category of insured people a carrier uses to group applicants with similar expected risk. It decides which premium rate the applicant pays. ## S [Sales Script](https://epicline.preview.multisites.ai/glossary/sales-script) A sales script is a written guide for a sales call. It lists key questions, required disclosures, and sample wording so each call covers the same important points. [Shared Lead](https://epicline.preview.multisites.ai/glossary/shared-lead) A shared lead is a prospect record sold to more than one agent or agency. Several agents may call the same person, which lowers the price per lead and often lowers the chance of a sale. [Simplified Issue Life Insurance](https://epicline.preview.multisites.ai/glossary/simplified-issue-life-insurance) Simplified issue life insurance is coverage approved using a short health questionnaire and database checks, with no medical exam. A few health answers can lead to a decline, so approval is not guaranteed. [Single Premium Immediate Annuity (SPIA)](https://epicline.preview.multisites.ai/glossary/single-premium-immediate-annuity) A single premium immediate annuity (SPIA) is an annuity bought with one lump sum that begins paying income right away, usually within a year. Payments can last for life or for a set period. [Spouse Rider](https://epicline.preview.multisites.ai/glossary/spouse-rider) A spouse rider is an add-on that adds term life coverage on the policyholder's spouse to the main policy. It gives a smaller amount of coverage for a single added premium and may include a conversion option. [Standard](https://epicline.preview.multisites.ai/glossary/standard) Standard is the underwriting class for applicants with average health and risk for their age. It is the benchmark that other classes are priced against. [Standard Plus](https://epicline.preview.multisites.ai/glossary/standard-plus) Standard plus is an underwriting class between preferred and standard. It is meant for applicants in good health who miss a few of the preferred requirements. [State Department of Insurance (DOI)](https://epicline.preview.multisites.ai/glossary/state-department-of-insurance) A state Department of Insurance is the state agency that licenses agents, reviews insurance products, and handles consumer complaints. Names vary, such as Division of Insurance or Department of Financial Services. [State Exam](https://epicline.preview.multisites.ai/glossary/state-exam) The state exam is a test that a person must pass to earn a producer license in a state. It covers insurance basics, state law, and ethics for the license type, such as life. [State Insurance Code](https://epicline.preview.multisites.ai/glossary/state-insurance-code) A state insurance code is the set of laws that govern insurance in a state. It covers licensing, policy terms, advertising, claims handling, and consumer protection. [STIR/SHAKEN](https://epicline.preview.multisites.ai/glossary/stir-shaken) STIR/SHAKEN is a set of technical standards that lets phone carriers verify that a caller ID is real. It is meant to reduce spoofed and scam calls. [Street Level](https://epicline.preview.multisites.ai/glossary/street-level) Street level is the base commission rate a carrier pays to an agent contracted directly with no extra contract uplift. It is the entry tier on the commission schedule. [Submission](https://epicline.preview.multisites.ai/glossary/submission) A submission is the act of sending a completed insurance application to the carrier for review. After submission, underwriting reviews it and the carrier decides to issue, decline, or ask for more information. [Substandard (Table Rating)](https://epicline.preview.multisites.ai/glossary/substandard) Substandard, or table rated, means an applicant has higher than average risk. The carrier offers coverage at an increased premium, usually shown as a percentage above the standard rate. [Suicide Clause](https://epicline.preview.multisites.ai/glossary/suicide-clause) A suicide clause is a policy provision that limits the payout if the insured dies by suicide in the first one or two years. The carrier usually returns the premiums paid instead. [Suitability](https://epicline.preview.multisites.ai/glossary/suitability) Suitability is the requirement that an insurance recommendation fit the buyer's financial situation, needs, and goals. Many states apply suitability rules, especially to annuity sales. [Surety Bond](https://epicline.preview.multisites.ai/glossary/surety-bond) A surety bond is a three-party promise in which a surety company guarantees that a person will meet an obligation. If the person fails, the surety pays and then seeks repayment. [Surrender Charge](https://epicline.preview.multisites.ai/glossary/surrender-charge) A surrender charge is a fee an insurer charges if you withdraw more than the allowed amount from an annuity, or cancel the contract, during the surrender period. It is usually a percentage that declines each year. [Surrender Period](https://epicline.preview.multisites.ai/glossary/surrender-period) A surrender period is the length of time, often several years, during which withdrawals above the allowed amount from an annuity trigger a surrender charge. After it ends, the owner can withdraw funds without that fee. [Survivorship Life Insurance](https://epicline.preview.multisites.ai/glossary/survivorship-life-insurance) Survivorship life insurance, also called second-to-die insurance, covers two people under one policy and pays the death benefit after the second person dies. It is permanent coverage in most cases. ## T [Table Rating](https://epicline.preview.multisites.ai/glossary/table-rating) A table rating is a premium increase for higher than standard risk, shown with letters or numbers. Each step usually adds about 25 percent to the standard rate, though carriers differ. [Telemarketing](https://epicline.preview.multisites.ai/glossary/telemarketing) Telemarketing is a plan, program, or campaign to sell goods or services by using one or more phone calls. In the United States, the Telemarketing Sales Rule and the TCPA set the main federal limits. [Telephone Consumer Protection Act (TCPA)](https://epicline.preview.multisites.ai/glossary/tcpa) The TCPA is a federal law that limits telemarketing calls, texts, autodialed calls, and prerecorded voice messages. It requires proper consent for many marketing calls and gives consumers a right to sue for violations. [Telesales](https://epicline.preview.multisites.ai/glossary/telesales) Telesales is the practice of selling products by phone instead of in person. In life insurance, telesales agents explain coverage, answer questions, and take applications over a call. [Term Life Insurance](https://epicline.preview.multisites.ai/glossary/term-life-insurance) Term life insurance is coverage that lasts for a fixed period, such as 10, 20, or 30 years. It pays a death benefit only if the insured dies during that term. It usually builds no cash value. [Terminal Illness Rider](https://epicline.preview.multisites.ai/glossary/terminal-illness-rider) A terminal illness rider is an add-on that lets the insured receive part of the death benefit early after a physician certifies an illness likely to cause death within a set time, often 12 or 24 months. [Tobacco Rating](https://epicline.preview.multisites.ai/glossary/tobacco-rating) A tobacco rating is a higher premium class for people who use tobacco or nicotine products. It usually costs much more than the nontobacco rate. [Trail](https://epicline.preview.multisites.ai/glossary/trail) Trail is an ongoing commission paid on a policy or account after the first year, often a small percentage. In life insurance, people use it for renewal pay, and in annuities it can follow assets. ## U [Underwriter](https://epicline.preview.multisites.ai/glossary/underwriter) An underwriter is the carrier professional or automated system that evaluates an application and decides whether to accept it, rate it, postpone it, or decline it. [Underwriting](https://epicline.preview.multisites.ai/glossary/underwriting) Underwriting is the process a carrier uses to review an application, judge the risk, and decide whether to offer coverage and at what price. It looks at health, age, habits, and history. [Underwriting Class](https://epicline.preview.multisites.ai/glossary/underwriting-class) An underwriting class is the group a carrier places an applicant in after review, such as preferred or standard. Each class has its own premium rate, with healthier groups paying less. [Underwriting Engine](https://epicline.preview.multisites.ai/glossary/underwriting-engine) An underwriting engine is software that applies a carrier's rules to an application and returns a decision, such as approve, decline, or refer for review. It can run in seconds for simple products. [Unearned Commission](https://epicline.preview.multisites.ai/glossary/unearned-commission) Unearned commission is commission an agent received for premium that was not ultimately paid or kept. The carrier may take it back through a chargeback. [Unfair Trade Practices](https://epicline.preview.multisites.ai/glossary/unfair-trade-practices) Unfair trade practices are insurance sales and claims actions that state law bans, such as misrepresenting policy terms, false advertising, and unfair discrimination. Most states base their laws on an NAIC model act. [Universal Life Insurance](https://epicline.preview.multisites.ai/glossary/universal-life-insurance) Universal life insurance is a type of permanent coverage with flexible premiums and an adjustable death benefit. Part of each payment funds the cost of insurance, and the rest goes to a cash value account that earns interest. [Upline](https://epicline.preview.multisites.ai/glossary/upline) An upline is the agent, agency, or organization above another agent in the contracting hierarchy. The upline often provides training, contracts, and support, and may earn an override. ## V [Variable Life Insurance](https://epicline.preview.multisites.ai/glossary/variable-life-insurance) Variable life insurance is permanent coverage whose cash value is invested in subaccounts chosen by the policy owner. The cash value and sometimes the death benefit rise or fall with the performance of those investments. [Vested Renewals](https://epicline.preview.multisites.ai/glossary/vested-renewals) Vested renewals are renewal commissions an agent has the right to keep receiving, even after leaving the agency, because the contract says they have vested. [Vesting](https://epicline.preview.multisites.ai/glossary/vesting) Vesting means an agent gains a right to something over time or on meeting conditions, such as the right to keep earning renewal commissions after leaving. The contract sets the rules. [Voice Signature](https://epicline.preview.multisites.ai/glossary/voice-signature) A voice signature is a recorded spoken agreement that a carrier accepts in place of a written signature. Federal law lets an electronic signature include a sound, if the signer intends to sign. ## W [Waiver of Premium Rider](https://epicline.preview.multisites.ai/glossary/waiver-of-premium-rider) A waiver of premium rider is an add-on that stops premium payments on a life insurance policy if the insured becomes disabled or has a covered illness, while the coverage stays in force. [Warm Lead](https://epicline.preview.multisites.ai/glossary/warm-lead) A warm lead is a prospect who has shown some interest or has an existing relationship with the seller, such as by filling out a form or replying to a mailer. A warm lead is more receptive than a cold contact. [Whole Life Insurance](https://epicline.preview.multisites.ai/glossary/whole-life-insurance) Whole life insurance is permanent coverage that lasts for the insured's entire life as long as premiums are paid. It combines a guaranteed death benefit with a cash value that grows at a rate set by the insurer. ## Browse by topic - Policy types and products22 - Annuity terms14 - Riders14 - Policy mechanics28 - Underwriting23 - Consumer pricing and coverage concepts10 - Agent licensing and appointments22 - Distribution structure20 - Compensation22 - Sales and lead terms24 - Compliance and regulation20 - Technology and operations10 - Funeral and end-of-life12 ## Start your climb. Tell us where you are today and request a call about licensing, training and the calls. [Apply to join](https://epicline.preview.multisites.ai/apply) Shopping for coverage instead? [Get a quote](https://epicline.preview.multisites.ai/get-a-quote)