Explore definitions of longevity and life settlements sectors terminology beginning with F.
This glossary provides concise explanations of terminology commonly used in the longevity and life settlements sectors. Below you'll find terms beginning with the letter F.
- Face Amount
Face Amount is the amount stated on a life insurance policy that will be paid upon policy maturity or death. The amount excludes Dividend Addition or additional amounts payable under Accidental Death or other special provisions.
- Family Policy
Family Policy is a life insurance policy that typically provides insurance on all or several family members in one contract. It generally provides whole life insurance on the principal earner and term insurance on the spouse and their children, including newborns, usually after reaching an age of 15 days.
- Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation is an independent agency created to maintain stability and public confidence in the US financial system.
- Fiduciary
Fiduciary: A person or organization legally appointed and authorized to control or manage assets, for example, whilst administering a pension plan. Fiduciaries are legally obligated to discharge their duties solely in the interest of the plan’s participants and their beneficiaries. They are accountable for any actions that may be construed by courts as breaching that trust.
- Financial Underwriting
Financial Underwriting is an insurer's procedure for the assessment of a proposer’s net worth insurability limit which analyzes justification and suitability for the death benefit value requested.
- Fixed Account
Fixed Account: The fixed account is the general account within a Variable-Universal Life (VUL) policy that invests primarily in high quality bonds and mortgages. The principal and minimum interest guarantees are backed by the general assets of the insurer and its ability to meet its financial obligations.
- Fixed Annuity
Fixed Annuity is a deferred annuity contract in which the life insurance company credits a fixed rate of return on premiums paid for the term of the contract. The insurance company offering the contract guarantees both earnings and principal.
- Flat Extra
Flat Extra: If, due to impaired health or other reasons, such as a dangerous occupation, the applicant does not qualify for insurance at standard rates, an insurance policy is issued at an additional cost. When this cost is levied as a rate per $1,000, it is referred to as a flat extra. It can be charged on a temporary or permanent basis.
- Fraternal Life Insurance
Fraternal Life Insurance is life insurance underwritten or provided by fraternal orders or societies to their members under either a legal reserve plan or an assessment plan.
- Fraud
Fraud: Insurance fraud occurs when any act is committed with the intent to fraudulently obtain some benefit or advantage to which a person would not otherwise be entitled or when someone knowingly denies some benefit that is due and to which someone is entitled. The perpetrators in these instances can be either insurance company employees or claimants.
- Free Look
Free Look: The right of the Policy Owner to have a period of ten or more days to examine an insurance policy and if not satisfied, return it to the insurance company for a full refund of all premiums paid.
