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Glossary

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A

A.M. Best
An independent insurance rating firm that evaluates the financial strength of insurance companies.

Accelerated Death Benefit
This rider provides for some payment or loan of the death benefit amount while the insured person is terminally ill. The owner must furnish medical proof that the insured has a terminal illness. Please review the terms of this benefit in your policy. Please contact your local Sales Representative or call the Claims Department at 1.800.926.1315 to learn more about the details of this rider.

Accelerated Death Benefit Rider
This insurance rider allows for early payment of a portion of the basic policy's death benefit upon receipt of medical proof that the insured is terminally ill and if certain conditions are met.

Accept/Reject Underwriting
An acceptance or rejection for underwriting based on the answers to the questions on the application. An applicant is either accepted and issued a policy or rejected and denied coverage. In most cases, no additional medical records or tests are required to determine an applicant's eligibility.

Accidental Death Benefit
An additional death benefit to be paid if death is a direct result of an accident in accordance with the terms of the policy.

Accidental Death Benefit (ADB) Rider
A supplementary benefit rider or endorsement that provides for an amount of money in addition to the basic death benefit of an insurance policy. This additional amount is payable only if the insured dies as the result of an accident as defined in the policy.

Accidental Death Insurance
Policy death benefit for your beneficiary if you die in an accident, as defined in the policy, not from an illness or old age.

Account Owner
The person designated as the legal owner of the life insurance policy, fixed annuity, or variable annuity account and who has access to the Company's records regarding his/her designated account(s). In many cases, the account owner is also the premium payer for the account.

Account Summary
A summary listing of life insurance policies, fixed/variable annuity policies, and/or mutual fund accounts that can be accessed by a registered WSLife.com policyholder/accountholder.

Actual Cash Value
The amount you'll be reimbursed from your property and casuality (not life) insurance company for an item that is damaged, destroyed, or stolen. This amount is the same as the "fair market value," which is how much you could reasonably expect to receive if you sold the item yourself.

Actuary
A person who uses mathematics and statistics to determine insurance and annuity calculations, such as life expectancy, premiums, rates, etc.

Adjustable Rate Mortgage (ARM)
A mortgage loan on which the interest rate is periodically adjusted to match a predetermined index, usually making the interest rate lower in the beginning period of the loan's term.

Adjusted Gross Income (AGI)
Your gross income minus deductions. Gross income includes wages, dividends, business profits, income from rental property, and interest, as reported on IRS Forms 1040, 1040A, and 1040EZ.

Advanced Alzheimer's Disease - 100% Benefit
A progressive degenerative brain disease characterized by memory loss and loss of judgment resulting in a significant reduction in mental and social functions. To receive policy benefits, the insured must be diagnosed by a legally qualified physician who is a board-certified neurologist; the insured must also require permanent daily supervision and be unable to perform three or more activities of daily living (e.g., move in or out of a bed or chair, dress, bathe, eat, use the toilet and control his/her bladder).

Alimony
Payment mandated by the court for support of a divorced spouse. Payments are tax-deductible for the spousal payer, yet taxable as income for the spousal recipient.

Alternate Name of Insured/Annuitant
An alternative or secondary name (e.g., maiden name, nickname, etc.) used by an insured/annuitant other than her or his proper full name.

Amortization
The process by which a loan or debt is paid off over time.

Annual Gift Tax Exclusion
The amount a donor can give to a recipient free of gift taxes each year.

Annual Percentage Yield (APY)
The actual rate of return on an investment. The APY is determined by taking one plus the periodic rate and raising it to a power equal to the number of periods in a year, then subtracting one.

Annual Renewable Term Life Insurance
Term life insurance that provides coverage that is renewable annually for a certain number of years with annually adjusted premiums. At the end of each one-year term, the premium changes to the appropriate amount for the new attained age.

Annuitant
(1) The person designated to receive annuity payments.
(2) The person whose lifetime is used as the measuring period to determine how long benefits are payable under a life annuity.

Annuity
A long-term, tax-deferred retirement product that can help protect you against the risk of outliving your assets. The monies in the annuity can be paid to you as a partial withdrawal, as a full withdrawal, or as a guaranteed income, usually at retirement.

Annuity Payments
Money you receive or your beneficiary receives from your annuity. The type and dollar value of the annuity you purchase determine when and how much money is paid out.

Applicable Credit Amount
Formerly known as the unified credit, it is a dollar-for-dollar offset against the federal estate tax. The amount of the credit cannot exceed the amount of estate tax imposed.

Asset
Anything you own that's worth something, such as cash, investments, or real estate.

Asset-Equity Ratio
The value of the assets you own divided by the equity you have.

Assets Owned and Under Management
Assets that the enterprise (Western & Southern Financial Group) owns and third-party assets that the enterprise manages.

Automobile Expense
Expenses that should be considered in your monthly automobile total would be loan/lease payments for vehicle #1, loan/lease payments for vehicle #2, car insurance, repairs/maintenance, gas/fuel, parking fees, and miscellaneous car expenses.

Average
A mathematical equation that determines the level equivalent of a group of unequal values. For example, the commonly known Dow Jones Industrial Average (DJIA), which measures the overall condition of the stock market, is the price-weighted average value of 30 DJIA stocks.

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B

Bankruptcy
A federal proceeding in which you are declared financially ruined. If you file bankruptcy, your liabilities are forgiven or restructured, and certain of your assets are liquidated to pay off your creditors.

Basic Cash Value
The cash value accumulation in the basic policy. It does not include the cash value of any spouse or child riders.

Bear Market
A term for stocks, bonds, or commodities markets when prices decline for an extended period.

Benchmark
A point of reference used for comparison.

Beneficiary
The party or parties you designate as the recipient(s) of the proceeds from certain assets you may have, including a life insurance policy, an annuity, a retirement account, or a trust. Beneficiaries are usually noted in your will. The beneficiary (or beneficiaries) has first rights to receive the benefits of a life insurance policy/annuity following the death of the insured/annuitant.

Benefit
The amount of money paid when an insurance claim is approved; also referred to as policy benefit.

Benefit Reduction Age
The age of the insured at which a policy benefit is decreased. The Western and Southern Life Insurance Company reduces the Critical Illness Insurance benefit by 50 percent on the anniversary following the insured's 65th birthday or five years after issue for issue ages above 60.

Benefit Reduction Amount
The percentage by which a policy benefit is reduced when the insured reaches the benefit reduction age. The Critical Illness Insurance benefit reduction amount is 50 percent (following the insured's 65th birthday or five years after issue for issue ages above 60).

Blue-Chip Stock
Stock in a highly reputable, well-established company that is characterized by a solid record of earnings or dividend growth. Coca-Cola is an example of a blue-chip stock.

Bodily Injury Liability Coverage
Automobile coverage provided by a property and casualty insurer that pays for the medical expenses of persons injured in an accident caused by you, a family member, or a friend who has permission to drive your vehicle. Liability coverage also pays for legal expenses if you are sued.

Bond
A debt instrument sold to raise capital. If you invest in a bond, you are essentially lending money for a period of more than one year to the institution that sold it to you. Federal and local governments as well as commercial companies are among institutions that sell bonds.

Broker
A person or organization who (usually for a commission) negotiates or intermediates between a buyer and a seller.

Budget
A detailed plan that helps you coordinate your income and expenses.

Bull Market
A stock market in which prices are rising and are expected to continue rising.

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C

COBRA
An acronym for Consolidated Omnibus Budget Reconciliation Act, the government-mandated provision that requires employers with more than 20 employees to offer group health insurance coverage at the employees expense for up to 18 months after termination. Under COBRA, if the employee dies, the employer must offer the coverage to the deceased employee's spouse and dependent children for up to 36 months.

Cap
The highest interest rate paid. A rate cap is either for interest paid to you (as on a floating-rate bond) or paid by you (as for an adjustable-rate mortgage). Also an abbreviation for capitalization, such as a mid-cap mutual fund.

Capital
Accumulated assets, often providing a stream of income.

Capital Gains
The profit you earn from a capital asset over what you paid for it initially.

Capital Gains Tax
Tax charged on the gains received from the sale of a capital asset.

Capitalization
The total of a company's debt and equity. This total is viewed as capital rather than as a liability.

Cash
Money or its equivalent, such as currency, coins, money orders, and checks.

Cash Flow
The difference between cash receipts and cash expenditures.

Cash Reserve
Liquid funds – such as cash, money markets, or Treasury bills – used to meet short-term or emergency needs.

Cash Surrender Value
(1) In a life insurance policy, the amount of money, adjusted for factors such as policy loans or late premiums, that the policy owner will receive if the policy owner cancels the coverage and surrenders (i.e., cancels) the policy to the insurance company. Your particular policy will explain its surrender fees.
(2) In an annuity, the amount that a contract owner will receive if he/she surrenders a deferred annuity. This amount is equal to the accumulated value of the annuity less any surrender charges specified in the policy. Your particular contract will explain its surrender fees.

Cash Value
The cash you receive if you cancel a life insurance policy or annuity that builds cash value. In a life insurance policy, the cash value is the amount of money, before adjustment for factors such as policy loans or late premiums, that the policyowner will receive if the policyowner allows the policy to lapse or cancels the coverage and surrenders the policy to the insurance company. Cash values are a feature of most types of permanent life insurance, such as whole life and universal life.

Catch-Up Contribution
A contribution to a retirement account that is allowed in addition to the annual maximum for people age 50 and over.

Certificate of Deposit (CD)
A low-risk, low-return debt instrument offered by a bank. CDs pay interest (set by the bank) over a designated period of time, such as a seven-month CD. You will likely pay a fee for early withdrawal of funds.

Chicago Mercantile Exchange
An international marketplace where futures and options contracts are traded.

Child Death Benefit
Death benefit amount for all covered children if the policy and the child rider are still in benefit.

Child Support
Money awarded by the court on behalf of the custodial parent and payable by the non-custodial parent for the support of a child.

Children Expense
Expenses that should be considered in your monthly children expense total would be child-care fees, child support, school fees, lessons/activities, lunches, allowances, and other miscellaneous children-related expenses.

Class I (Primary) Beneficiary
The party or parties who have first rights to receive the benefits of a life insurance policy/annuity following the death of the insured/annuitant.

Class II (Contingent) Beneficiary
The party or parties designated to receive life insurance policy/annuity proceeds if the Class I (Primary) Beneficiary/ies should die before the insured/annuitant.

Class III (Second Contingent) Beneficiary
The party or parties designated to receive life insurance policy/annuity proceeds if the Class I (Primary) Beneficiary/ies and Class II (Contingent) Beneficiary/ies should die before the insured/annuitant.

Clinical Diagnosis
A diagnosis of life-threatening cancer or first carcinoma in situ based on the study of symptoms, clinical findings and diagnostic test results. Conditions for a clinical diagnosis exist when a physician is treating the insured for cancer studies symptoms and diagnostic test results, a pathological diagnosis is medically inappropriate, or life-threatening and medical evidence supports the diagnosis.

Close-End Lease
An automobile lease that, at the end of the lease, does not require you to pay the difference between the anticipated residual value and the actual value of the vehicle.

Clothing Expense
Expenses that should be considered in your monthly clothing total would be clothes, uniforms, dry cleaning, and other miscellaneous clothing expenses.

Co-payment
A fee set by your health insurer that you pay out-of-pocket for certain medical costs, such as office visits and prescriptions.

Collateral
A pledge of your assets to a lender in exchange for a loan. If you default on the loan, the lender can take the assets you pledged, sell them, and pay off the loan.

Collision Coverage
Automobile insurance coverage from a property and casualty insurer that pays for repairs to your car after a collision with an object or another car.

Commission
The fee you'll pay if you use the services of a broker or agent when buying or selling financial products, investments, or real estate.

Common Market
An agreement between at least two countries that allows for trade between the countries without tariffs, such as NAFTA or the European Common Market.

Common Stock
Shares of securities representing ownership of a company. Such shares entitle you, the shareholder, to vote on corporate matters and receive dividends. However, in the event of a company's insolvency, claims of common stockholders are paid only after other creditors and preferred stockholders are paid.

Community Property
A state law that provides spouses with equal ownership interest in property acquired during a marriage. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Companion Policy
Situation where both spouses are issued policies; in this situation, each spouse receives a premium discount on his or her policy.

Compound Interest
Interest paid on an initial investment (principal), as well as on the accrued interest.

Compounding
The process by which the value of an investment increases exponentially over time because of compound interest.

Comprehensive Coverage
Automobile insurance coverage from a property and casualty carrier that pays for damages to your car not caused by collision. Qualifying damages include those from fire, flood, earthquake, wild animals, and other perils of nature, as well as theft or vandalism.

Consumer Loan Expense
Expenses that should be considered in the monthly consumer loans total would be credit card payments, second mortgage/home equity payments, and miscellaneous consumer loan expenses.

Consumer Price Index (CPI)
Commonly known as the cost-of-living index, CPI is a measurement by the U.S. Bureau of Labor Statistics. It is an indicator that measures changes in consumer prices for products and services, including housing, food, and transportation.

Contract Date
Effective date of policy or effective contract date for annuities.

Convertible Term Insurance
Life insurance coverage that you purchase to cover you for a specific period of time that can, during or at the end of the term, be converted to permanent life insurance. The permanent life coverage is available to you regardless of your health.

Coupon Rate
The interest rate, expressed as a percentage of principal, that is paid by a bond, note, or other fixed-income debt instrument.

Covered Expenses
Expenses covered by your health insurance policy for qualified medical treatment, such as office visits, prescriptions, X-rays, and hospitalization.

Credit
An agreement between you and a lender that lets you receive something of value immediately if you pay back the lender, often with interest, at a later date.

Credit Risk
The chance that an issuer of debt securities may default on an obligation.

Creditor
An institution or person who loans money.

Critical Illness
A life-threatening disease. Critical Illness Insurance pays 100 percent of the benefit for life-threatening cancer, heart attack, stroke, major organ transplant, end-stage kidney failure and advanced Alzheimer's disease. Critical Illness Insurance pays 25 percent of the benefit for first carcinoma in situ, first coronary angioplasty and first coronary artery bypass surgery.

Currency
Paper money.

Current Amount Available
The amount of money that may be borrowed under a life insurance policy.

Current Dividend Value
Dividend earned as of the last policy anniversary date. Dividend earnings are not guaranteed to be earned each year.

Current Interest Rate
The current rate of interest earned on a policy contract.

Current Loan Amount
The policy loan amount plus any interest.

Current Payment Amount
The amount due based on a policy's billing frequency.

Current Payment Schedule
The current billing frequency for a policy (e.g., monthly, quarterly, etc.).

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D

Date of Diagnosis
The date a legally qualified physician (and board-certified specialist where required) confirms through critical and or laboratory tests to conclude that the insured has a critical illness covered condition.

Date of Last Collection
The date the last premium payment was applied to a policy.

Death Benefit
Under a life insurance policy or annuity, the amount your beneficiary would be paid if you die while the policy is in effect. The amount is stated in the policy and is paid at face value plus the proceeds from any applicable insurance riders, minus any outstanding loan amounts.

Death Benefit Option
Death Benefit Option A or Option B:
For Option A, the Death Benefit is the greater of (1) the selected amount of insurance or (2) the accumulation value multiplied by the applicable percentage specified in the policy; any outstanding loan will be deducted from the proceeds.
For Option B, the Death Benefit is the greater of (1) the accumulation value plus the selected amount of insurance or (2) the accumulation value multiplied by the applicable percentage specified in the policy; any outstanding loan will be deducted from the proceeds.

Death Claim
A request for payment due to death under the terms of a life insurance policy or annuity contract.

Debit
A charge you make against the deposits in your bank account.

Debt
Money owed.

Debt Capacity
The most money a company can borrow before the company's value stops increasing.

Debt Ratio
Total debt divided by total assets.

Deductible
The amount, which usually has an annual cap, that you must pay out-of-pocket for certain medical costs or covered losses before your health or automobile insurer begins to pay claims.

Default
Failure to pay a financial obligation.

Deferred Annuity
A financial product that allows you to accumulate money on a tax-deferred basis, when purchased from an insurance company, that can subsequently be paid out as income or taken in a lump sum.

Defined-Benefit Plan
A retirement plan sponsored by the employer in which the employer's annual contributions to the plan are based on actuarial assumptions. The benefits are usually a monthly retirement pension based on the employee's wage and the number of years with the employer.

Defined-Contribution Plan
A retirement plan sponsored by the employer in which a separate account must be set up for each employee covered by the plan. The benefits are based solely on contributions to the account, as well as its investment gains and earnings.

Dependent
A person for whom you provided more than half of his/her support (dollars) and who generally is related to you or resides in your household.

Diagnosis
A legally qualified physician (and board-certified specialist required) uses critical and/or laboratory tests to conclude that the insured has a critical illness covered condition.

Disability
Inability to work due to an injury or sickness.

Disability Claim
A request for payment due to disability under the terms of a life insurance policy.

Diversification
To divide your investments among different securities that have different risks and rewards so that the return you receive is not greatly affected by external events or market fluctuations.

Dividend
Cash or shares of stock from a company's earnings (usually profits), which are considered taxable income. Also refers to cash or its equivalent value paid to the policy owner under certain participating life insurance or annuity contracts; such dividends are not considered taxable income.

Dividend Option
Indicates how dividend earnings are to be exercised. Not all policies earn dividends. There are different dividend options available on some policies. Please contact your local Sales Representative or call the Client Relationship Center at 1.866.832.7719 to learn more.

Domestic Partner Benefits
Employer-sponsored benefits for unmarried, same-sex partners.

Donation Expense
Expenses that should be considered in your monthly donations total would be charities, contributions/tithes, and any other miscellaneous donations.

Double Indemnity
A provision in certain life insurance policies (also known as an accidental death benefit) that pays double the death benefit to your beneficiary if you should die in an accident or in another way as specified by your policy.

Dow Jones Industrial Average (DJIA)
A well-known U.S. index of stocks that is an indicator of how the stocks of the largest companies in the U.S. are performing.

Duplicate Policy/Contract
A duplicate policy for a life insurance product or a duplicate contract for a fixed annuity that policyholders can request if an original policy or contract is lost or destroyed.

Durable Power of Attorney for Health Care
A legal document that allows someone of your choosing to make medical decisions for you if you become seriously ill or incapacitated.

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E

Earned Income
The income you receive as wages and salary in exchange for providing goods or services.

Earnings Record
The Social Security Administration's record of your actual lifetime earnings that are reported by your employers on your behalf. Used to calculate your Social Security retirement benefits.

Education Expense
Expenses that should be considered in your monthly education expense total would be interest on student loans, books, tuition, room and board, fees, living expenses, and other miscellaneous education expenses.

Electronic Funds Transfer (EFT)
A means of electronically depositing your earnings to or withdrawing payments from your bank.

Emerging Markets
A term used to describe the financial markets in developing countries.

Employee Stock Fund
An employer-sponsored program that lets you purchase shares of your company's common stock.

Employee Stock Ownership Plan (ESOP)
A fund used by your employer to buy stock of the company for you and other employees of the company.

End-Stage Renal Failure – 100% Benefit
The chronic irreversible failure of both of the kidneys (end-stage renal disease), which requires treatment with regular dialysis. The Diagnosis of End-Stage Renal Failure must be made by a Legally Qualified Physician who is a board-certified nephrologist.

Endorsement
An agreement attached to an insurance policy that adds or subtracts coverage and takes the place of the original terms of your policy.

Endowment Fund
A fund established by an institution such as a college, school, or hospital to which contributors give money. The income earned from the fund is used to run the institution or is made available for capital expenditures.

Entertainment Expense
Expenses that should be considered in your monthly entertainment expense total would be dining out, movies, hobbies, subscriptions, and other miscellaneous entertainment expenses.

Equity
Interest or ownership right; the value of the portion of an investment that you own.

Estate
Term used to describe the assets you own at the time of your death, minus your outstanding liabilities.

Estate Planning
The process of planning the accumulation and distribution of an estate, factoring in both tax and non-tax objectives.

Estate Tax
Tax owed on the transfer of your estate to your beneficiaries – can be fully or partially offset by the applicable credit amount.

Eurobank
A bank that deals in foreign currency, including deposits and loans.

Exchange Rate
The price at which one country's currency can be exchanged for another's.

Executor/Executrix
The person or organization you designate to carry out the instructions in your will.

Exhaust Date
The date that is set up when a notice is sent for the payment amount to stop exhaust.

Exhaust Loan Amount
The current loan amount that is equal to or exceeds the policy cash value. This is the amount required to stop the exhaust of the policy.

Expected Return on Investment
The amount of money you can reasonably expect to earn on an investment.

Extended Coverage
A written agreement or clause added to your insurance policy that gives you additional coverage beyond the coverage provided for by your basic policy.

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F

401(k) Plan
A type of tax-qualified deferred compensation plan in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pre-tax basis. Employers' matching contributions are not treated as part of the employee's elective contributions. Non-discrimination and top-heavy testing are required.

403(b) Plan
Tax Sheltered Annuity Plan (TSA) is a deferred compensation plan of exempt organizations and public schools. The annual contribution amount is made up of elective deferrals by employees, non-elective contributions by the employer, and after-tax contributions by the employee.

529 Savings Plan
A state-sponsored college savings program.

Face Amount
Under a life insurance policy, the benefit that is payable to your beneficiary upon your death.

Face-to-Face
With face-to-face service, your application will be sent to a local agent near your residence. Your agent will set up an appointment and meet you in person to complete the application process. This option is only available if there is a field office located near your residence.

Fair Market Value
The amount you would receive if you sold property to a willing buyer.

Fannie Mae
Acronym for the Federal National Mortgage Corporation, a publicly owned, government-sponsored corporation that purchases government-backed and conventional mortgages. Fannie Mae makes home mortgages affordable for low-, moderate-, and middle-income homebuyers.

Federal Deposit Insurance Company (FDIC)
The federal government's bank deposit insurer.

Federal Housing Administration (FHA)
Government agency that insures loans made by private lenders to homebuyers.

Federal Insurance Contributions Act (FICA)
The law that created Social Security and requires employers to withhold Social Security taxes.

Federal Reserve System (The Fed)
Governed by the Federal Reserve Board, the system that regulates monetary policy in the U.S.

Filing Status
Determines your tax bracket and amount of taxes that need to be paid. Factors that affect filing status are marriage and whether or not you file separate returns.

First Carcinoma in Situ – 25% Benefit
First Carcinoma in Situ means the first Diagnosis of cancer wherein the tumor cells still lie within the tissue of the site of origin without having invaded neighboring tissue. This does not include skin cancer. First Carcinoma in Situ must be Diagnosed pursuant to a Pathological Diagnosis or Clinical Diagnosis.

First Coronary Angioplasty (surgical treatment) – 25% Benefit
First Coronary Angioplasty (surgical treatment) means the first-ever balloon angioplasty or other forms of catheter-based percutaneous transluminal coronary artery therapy to correct narrowing or blockage of one or more coronary arteries, performed by a Legally Qualified Physician who is also a board-certified cardiologist.

First Coronary Artery Bypass Surgery (surgical treatment) – 25% Benefit
First Coronary Artery Bypass Surgery (surgical treatment) means the first-ever coronary artery revascularization surgery to correct narrowing or blockage of one or more coronary arteries with bypass grafts, performed by a Legally Qualified Physician who is a board-certified cardiothoracic surgeon.

Fitch
An independent insurance rating firm that evaluates the financial strength of insurance companies.

Fixed Annuity
An annuity that guarantees your principal and pays a return that is equal to or greater than a specified fixed rate.

Fixed Asset
Property you own that has value.

Fixed Premium
A fixed amount of money (that never increases or decreases) that you pay as a single payment or periodically to maintain insurance coverage.

Fixed-Rate Loan
A loan whose interest stays the same throughout the life of the loan.

Flexible Spending Account
A means of paying for eligible out-of-pocket health-care or child-care expenses with pretax money.

Food Expense
Expenses that should be considered in your monthly food expense total would be grocery store bills and other miscellaneous food expenses.

Form 1099
A tax form that is sent when there is a taxable event that is reported to the Intenal Revenue Service. The Form 1099 is mailed by January 31 of the following year to the policyowner.

Form 5498
A tax form that is required by the Internal Revenue Service to notify a client and the Internal Revenue Service of the fair market value of an annuity contract.

Freddie Mac
An acronym for the Federal Home Loan Mortgage Corporation (FHLMC), a publicly chartered agency that purchases residential mortgages from lending companies and packages them into new securities that are sold on the open market.

Fund Amount
The amount that has accumulated in the cash fund of an annuity contract.

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G

Gift
A transfer of property from one person to another without adequate and full consideration.

Gift Expense
Expenses that should be considered in your monthly gift expense total would be birthdays, holidays, anniversaries, and other miscellaneous gift expenses.

Gift Tax
Tax paid on the transfer of assets. It can be fully or partially offset by the annual gift tax exclusion and the applicable credit amount (formerly known as the unified credit).

Ginnie Mae
An acronym for the Government National Mortgage Association, a government-owned corporation that guarantees the timely payment of principal and interest on securities that are issued by approved servicers and are secured by certain mortgages, such as Federal Housing Administration (FHA)-issued, Department of Veterans Affairs (VA)-guaranteed, or Farmers Home Administration (FmHA)-guaranteed mortgages.

Government Securities
Negotiable securities from the U.S. Department of Treasury.

Governmental 457 Plan
A deferred compensation plan available to employees of state and federal governments and agencies.

Grace Period
The period of time after a loan or insurance payment due date before its cancelation or default due to non-payment.

Graduated Payment Mortgage (GPM)
A tiered mortgage that requires you to make increasing payments over time before the payments level off at a higher, fixed rate.

Gross National Product (GNP)
A measurement of the U.S. economy's total income.

Gross Salary
Expenses that should be considered in your monthly gross salary total would be salary #1, salary #2, salary #3, bonuses, incentives, and other miscellaneous gross salary income.

Group Insurance
Insurance coverage provided to a group of affiliated individuals.

Guaranteed Insurability Protector
This rider provides the insured with the right to purchase additional insurance on specified option dates occurring after issue of the original policy without evidence of insurability.

Guaranteed Renewable
An insurance policy provision that guarantees you the right to renew the policy for the period stated in the policy, as long as you pay the premiums. Premiums may increase, but your coverage cannot be changed or denied.

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H

Health Maintenance Organization (HMO)
A health-care plan that provides medical care through participating providers, for a fixed annual fee.

Heart Attack (Myocardial Infarction) – 100% Benefit
Heart Attack (Myocardial Infarction) means the death of a portion of the heart muscle, resulting from blockage of one or more coronary arteries. In order to be covered under this policy, the Diagnosis of Heart Attack (Myocardial Infarction) must be based upon both: (1) New electrocardiographic changes consistent with and supporting a Diagnosis of Heart Attack (Myocardial Infarction); and (2) Concurrent diagnostic elevation of cardiac enzymes.

Hedge Fund
An investment that uses various means to enhance returns.

High-Yield Bond
A bond that may produce higher returns but has a speculative credit rating, reflecting higher risk. Also known as a junk bond.

Highly Compensated
An employee is highly compensated if he or she was a five-percent owner of the employer, received compensation in the preceding year in excess of a predetermined amount, and, if elected by the employer, is in the top 20 percent of employees based on compensation. To qualify for tax advantages, retirement plans cannot favor highly compensated employees. (Source: irs.gov)

Household Expense
Expenses that should be considered in your monthly household expense total would be rent/mortgage payment, property taxes, maintenance, furnishings, improvements, homeowners insurance, association fees, and miscellaneous household expenses.

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I

Immediate Annuity
An annuity that begins paying out income payments within 12 months or less after the first premium is paid.

In Situ
Medical term used to describe a diagnosis of cancer wherein the tumor cells still lie within the tissue of the site of origin without having invaded neighboring tissue.

Income Beneficiary
The person you designate to receive income from a trust.

Income Bond
A bond on which interest payments are contingent upon sufficient earnings.

Income Fund
A mutual fund investment with a primary purpose of providing income.

Income Tax
The government's annual tax on income you earn.

Indemnity Plan
Also known as fee-for-service, health insurance that reimburses you for all or a portion of covered medical expenses and places no limits on your choice of providers.

Index
A measurement of the changes in the economy and financial markets.

Individual Retirement Account (IRA)
A tax-deferred savings vehicle with a financial institution in which contributions may be invested in stocks, bonds, money market funds, etc.

Initial Public Offering (IPO)
The first sale of a company's stock to the public.

Insolvent
Unable to meet debt and other financial obligations.

Insurance Amount
Basic policy coverage amount and, if applicable, any supplementary term coverage.

Insurance Expense
Expenses that should be considered in your monthly insurance expense total would be life insurance payments, disability insurance payments, and other miscellaneous insurance expenses.

Insured
An individual whose life or property is insured.

Insured Name
The named person whose life is insured by an insurance policy.

Interest
The amount you pay to a lender to borrow money. Also the amount you receive on lending your own money.

Interest Income
Income that should be considered in your monthly interest income total are interest income #1, interest income #2, interest income #3, and other miscellaneous interest income.

Interest Rate Cap
A limit on increases to the interest rate you pay on an adjustable rate mortgage (ARM).

Internal Revenue Service (IRS)
The federal agency that oversees and enforces the revenue laws of the Treasury Department, including collection of taxes.

Investment Income
Proceeds from your invested assets.

Irrevocable Beneficiary
A permanent, unchangeable designation of your beneficiary.

Irrevocable Trust
A trust agreement that cannot be altered, amended, revoked, or terminated and is generally not subject to estate taxes.

Issue Age
The age of the insured on the date upon which a policy became effective.

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J

Joint Life Insured
One insurance policy that covers two lives and that generally provides for payment of the proceeds at the time of the first insured's death.

Joint Owner
Both persons named as joint owner of an annuity are entitled to all contractual rights and benefits without the consent of any other persons.

Joint Tenancy with Rights of Survivorship
Equal ownership of property by you and at least one other person. When you die, your interest passes to the other co-owner(s) instead of to your estate.

Junk Bond
A bond that may produce higher returns but has a speculative credit rating, reflecting higher risk. Also known as a high-yield bond.

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Keogh Plan
A type of tax-deferred retirement account for self-employed persons.

Key Employees
Key employees are those employees, other than officers, directors, and trustees, who (a) had a reportable compensation exceeding $150,000 for the year (the "$150,000 test"); (b) had or shared organization-wide control or influence similar to that of an officer, director, or trustee, or managed or had authority or control over at least 10 percent of the organization's activities (the "responsibility test"); and (c) were within that group of the organization's top 20 highest-paid persons for the year who satisfied both the $150,000 test and the responsibility test. (Source: irs.gov)

Kiddie Tax
Tax rate on investment income of children under the age of 14.

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L

Last Reinstatement Date
The date on which the policy was most recently put back into effect after coverage had previously terminated.

Lease
A rental contract.

Lease Rate
The payment schedule outlined in your lease.

Legally Qualified Physician
A physician who is licensed and practicing medicine in the United States, legally qualified to diagnose and treat sickness and injuries, providing services within the scope of his or her license and a board-certified specialist where required under the Critical Illness Insurance policy.

Lender
A person or organization that gives you a loan or credit.

Level Premium
The Western and Southern Life Insurance Company will only change Critical Illness Insurance premium rates by policy class subject to approval by state departments of insurance.

Liability
A claim on your assets.

Liability Insurance
Auto insurance coverage from a property and casualty carrier for accidental losses resulting from bodily injury or damages to someone else's property.

Lien
A claim on your assets by a lender as a means to secure debt.

Life Annuity
An annuity that pays out income periodically for your life and ends upon your death.

Life Estate
Property ownership in which your designated life tenant has the right to possess, use, and enjoy property (or income from a property) throughout his or her lifetime. When the life tenant dies, the property passes to another individual.

Life Expectancy
A statistical measurement of the number of years a person is expected to live.

Life Insurance
A policy that pays your beneficiary a specified amount upon your death.

Life Insurance Trust
A policy that places the proceeds of your life insurance policy in a trust to be paid out in a manner specified in the agreement.

Life Tenant
An individual with possession of a life estate.

Life-Threatening Cancer – 100% Benefit
Life-Threatening Cancer means a malignant neoplasm (including hematologic malignancy), which is characterized by the uncontrolled growth and spread of malignant cells and the invasion of tissue, and which is not specifically hereafter excluded. The following types of cancer are not considered a Life-Threatening Cancer: prostate cancer staged less than T2N0M0 or equivalent staging; carcinoma in Situ; pre-malignant lesions (such as intraepithelial neoplasia), benign tumors or polyps; any skin cancer other than invasive malignant melanoma in the dermis or deeper, or skin malignancies that have become Life-Threatening Cancers. Life-Threatening Cancer must be diagnosed pursuant to a Pathological Diagnosis or a Clinical Diagnosis.

Limited Benefit
Benefit is reduced for certain conditions.

Line of Credit
An agreement between you and your bank stating the maximum loan amount you are allowed to borrow.

Liquid Asset
Any asset that can easily be turned into cash.

Liquidity
The ability of an asset to be easily turned into cash.

Living Will
A legal document that lets you declare in advance what life support measures should be taken if you become terminally ill or incapacitated.

Load Fund
A mutual fund in which you pay an up-front sales fee.

Loan
An agreement between you and a lender in which you take money in exchange for a promise to repay the loan amount along with interest.

Loan Amount Available
An amount you can borrow from your life insurance or annuity policy.

Loan Interest Rate
The percentage of interest charged when the basic policy value is released in the form of a policy loan. The applicable rate is stated in the policy contract.

Loan Value
An amount you can borrow from your life insurance or annuity policy.

Long-Term Debt
Any financial obligation that takes one or more years to retire.

Long-Term Disability Insurance
Insurance coverage that pays you monthly benefits should you become disabled. Benefits usually stop at age 65 when Medicare becomes available to you.

Long-Term Planning
The process of developing and implementing a coordinated plan for achievement of financial objectives. It could include income tax planning, planning for retirement, investment planning, risk management, and estate planning.

Loss of Income
The amount of income you lose in the event of a disability.

Loss of Sight or Limbs Benefit
A benefit in some policies providing coverage for the loss of eyesight or limbs.

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Major Organ Transplant - 100% Benefit
Major Organ Transplant means clinical evidence of major organ(s) failure which requires the malfunctioning organ(s) or tissue of the Insured to be replaced with the organ(s) or tissue from a suitable donor under generally accepted medical procedures. Those organs or tissues covered by this definition are limited to: liver, kidney, lung, entire heart, small intestine, pancreas, pancreas-kidney, or bone marrow. In order for the Insured's Major Organ Transplant to be covered under this policy, the Insured must also be registered by the United Network of Organ Sharing (UNOS).

Margin
The difference between the market value of a stock and what a broker will loan you to purchase that stock.

Marginal Tax Rate
Also called a tax bracket, it is the percentage of your income that you must pay in taxes. It is the tax you pay on the top portion of your income. Because the U.S. has a progressive income tax, your tax rate rises as your taxable income rises through two or more tax brackets.

Market Value
Perceived worth of a security, determined by multiplying the number of outstanding shares by the current market price.

Maturity
The date on which a debt becomes due for payment or an investment becomes payable to you.

Maximum Benefit Amount
The maximum amount that will be payable under a Critical Illness Insurance policy. This amount is payable only upon the first diagnosis of or required surgical treatment for a critical illness insured condition.

Medical Exam
A brief physical examination that may be required to confirm height, weight and overall general health; commonly referred to as a ParaMed exam.

Medical Expense
Expenses that should be considered in your monthly medical expense total would be dental care, eye care, doctor fees, prescriptions, health insurance premiums, flexible spending account contributions, and other medical expenses.

Medical Savings Account
A pretax savings account that pays for routine medical care and provides insurance for major medical claims. Unlike flexible spending account plans, accumulated funds in an MSA transfer to the next year.

Mid-Cap
A category of stocks best described as a collection of the most successful stocks of companies with smaller capitalization and the least successful stocks of companies with larger capitalization.

Miscellaneous Expense
Expenses to be considered in your monthly miscellaneous expense total would be dues, club memberships, alimony, and other miscellaneous expenses.

Miscellaneous Income
Income that should be considered in your monthly miscellaneous income total would be alimony, child support, and other miscellaneous income.

Modified Adjusted Gross Income (MAGI)
Modified Adjusted Gross Income (MAGI) adds certain deductions - such as IRA contribution deductions, student loan deductions, higher education costs, foreign income, and foreign-housing deductions - back into your Adjusted Gross Income (AGI). MAGI impacts contribution amounts to Traditional IRAs and Roth IRAs.

Money Market
A short-term debt instrument, such as a negotiable certificate of deposit (CD) or Treasury bill.

Money Purchase Plan
A defined contribution plan in which employer contributions are fixed, and not based on profits. (Source: irs.gov)

Mortgage
A home loan that lets you purchase and use property. The property secures the debt and belongs to the lender if you default on the loan.

Mortgage Rate
The interest rate on a property loan.

Municipal Bond
Bonds issued by state and local governments as a means to fund special projects, such as highways or sewers. Municipal bond interest is exempt from some taxes.

Mutual Fund
A professionally managed fund that invests money from you and other shareholders in a group of assets, such as stocks, bonds, commodities, or other securities.

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National Association of Securities Dealers Automatic Quotation (NASDAQ)
The electronic system of giving price quotes on nearly 4,000 common stocks.

Net Present Value
The value of a stream of future net cash flows, discounted at a specified interest rate.

Net Worth
Your financial worth, calculated by adding your total assets and subtracting your total liabilities.

No-Load Fund
A mutual fund in which you do not pay an up-front sales fee.

Nondiscrimination Testing
A plan must meet three basic requirements to be considered nondiscriminatory: (1) contributions or benefits must not discriminate in favor of highly compensated employees; (2) benefits, rights, and features provided must be made available to employees in a nondiscriminatory manner; and (3) the effect of plan amendments and plan terminations must be nondiscriminatory.

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O

Open-End Lease
An automobile lease that, at the end of the lease, requires that you pay an additional amount. The amount varies depending on the value of the vehicle and is the difference between the anticipated residual value and the actual value of the vehicle.

Open-End Mortgage
A mortgage loan that lets you borrow against the principal amount you have already paid.

Origination Fee
An amount charged by your lender to process a mortgage loan application.

Owner Name
The person who owns the policy for a life insurance product or fixed annuity.

Owner Waiver
Premium will be waived (paid by the Company) if the policyowner should die or becomes disabled before the insured person's 21st birthdate. The disability must be approved by the Claims Administration Department as certain requirements must be met. Death and disability claims may be submitted through WSLife.com.

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P

Paid to Date
For traditional life insurance policies, this is the actual date to which the premium is paid. For Universal Life policies, this is the date that the policy costs have been deducted from the cash value fund. In addition, the Paid to Date for Universal Life policies is updated each month on the day of the policy anniversary providing there is sufficient value in the cash fund.

Pathological Diagnosis
Pertaining to Critical Illness, a diagnosis of Life-Threatening Cancer or First Carcinoma in Situ based on a microscopic study of fixed tissue or preparations from the hemic (blood) system. This type of Diagnosis must be made by a Legally Qualified Physician who is also a board-certified pathologist and whose diagnosis of malignancy conforms with the standards set by the American College of Pathology.

Payer Name
The person who pays the premium for a life insurance policy or fixed annuity.

Pension
A lifetime monthly income paid to a person who has retired.

Policy Changes
Current life insurance and/or annuity policyholders with WSLife.com can change any of the following directly through WSLife.com: name, address/phone, Social Security number, and beneficiary information.

Policy Date
Effective date of policy or effective contract date for annuities.

Policy Detail
A listing of specific information for a registered WSLife.com policyholder's insurance or annuity policy that includes policy type (and option, if applicable), status, insurance/fund amount, policy date, total death benefit, current interest rate, tobacco user information, and beneficiaries.

Policy ID
The identifying number assigned to a policy contract for a life insurance product or fixed annuity.

Policy Name
The specific product name (e.g., Economy Life, Term to 25, etc.) of a type of insurance (whole life, term life, universal life, or accident/sickness) or fixed annuity.

Policy Owner
An individual who owns an insurance policy.

Policy Profile
A listing of specific information for a registered WSLife.com policyholder's insurance or annuity policy that includes owner name, Social Security number, insured name/annuitant, payer name, payer address, payer phone, spouse name, and joint life insured.

Portfolio
The total of all securities held by an investor.

Portfolio Manager
A financial professional who is responsible for the selection, allocation, and overall management of assets within a mutual fund.

Power of Attorney
A legal document that lets you designate another person to act on your behalf.

Preferred Risk
An insurance underwriting classification that calls for you to pay lower premiums than other insured persons because you have a lower risk of incurring a loss.

Premium
The amount of money you pay as a single payment or periodically to maintain insurance coverage.

Premium Payer
If other than the owner, the person to whom notices are mailed and who remits the premium payments to the Company.

The premium payer has only limited rights regarding access to policy or annuity information.

Premium Payer Name
The name of the person to whom notices are mailed and who remits the premium payments to the Company.

Premium Payer/Account Owner
One who is both the account owner and the premium payer for an insurance policy or annuity contract.

Present Value
The current value of a stream of future payments, discounted at a specified rate of interest.

Prime Rate
The interest rate charged by banks when lending to their best, or prime, customers.

Principal
The amount of money you borrow, not including interest. A remaining unpaid loan amount, excluding interest, is also known as principal.

Probate
The judicial process of determining the validity of and administering a will.

Profit-Sharing
A defined contribution plan in which contributions are generally computed by applying a contribution formula to employer profits. The level may be made variable and left to the annual discretion of the plan sponsor, within IRS limits. Contributions need not be made every year but must be "recurring and substantial." (Source: irs.gov)

Prospectus
A formal document that describes investment objectives and risks, used by investors to make informed decisions.

Provisional Income
Income that includes earned income (W-2), income from pensions, 401(k)s, traditional IRAs (1099R), taxable interest and gains (1099), tax-exempt interest, and 50% of Social Security benefit.

Proxy Vote
Permission granted by you to someone else to vote on your behalf.

Pure Insurance
In life insurance, the difference between the face amount and cash value. Also referred to as the net amount at risk.

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Q

Qualified Distribution
Qualified distribution from a Roth IRA must satisfy a five-year holding period and one of four requirements: (1) made on or after age 59½; (2) made to beneficiary on or after individual's death; (3) attributable to being disabled; or (4) used to pay for qualified first-time home buyer expenses.

Qualified Plan
A tax-deferred savings plan, such as a profit-sharing or a pension plan.

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Rate Lock
An agreement between you and your potential mortgage lender that guarantees your interest rate for a specified time period during the mortgage application period.

Rated Policy
Insurance that costs you a higher premium because you have a physical impairment, past medical condition, hazardous occupation, dangerous hobby, or some other underwriting risk.

Rating
A measurement of quality.

Received Date
The date on which an underwriting requirement is received from an independent third-party provider.

Refinance
To retire an old debt and replace it with a new one, usually at a lower interest rate or loan amount.

Relationship
Defines how an individual or organization is connected to a life insurance policy or fixed annuity contract. The most common relationships are insured, owner, and payer.

Relationship to Insured/Annuitant
Defines how a beneficiary is related to the insured/annuitant (e.g., spouse, mother, brother, friend, etc.).

Renter's Insurance
Low-cost insurance that usually includes liability coverage and personal property coverage for renters.

Replacement Cost
The cost of replacing or repairing lost or damaged property without taking into account depreciation or market value.

Request Date
The date on which information was requested.

Requirements
A variety of different items that are ordered for examination by underwriters in order to effectively evaluate risk and make an assessment on an applicant's insurability. These requirements are obtained from several independent third-party providers of such information.

Return of Premium
Upon the insured's death, The Western and Southern Life Insurance Company will return to the owner or to the owner's beneficiary if the owner is deceased or to the owner's estate if there is no beneficiary, 100 percent of all premiums (excluding Accidental Death Benefit) paid minus any benefits paid.

Revenue Reconciliation Act of 1993
A law designed to reduce the federal deficit by reducing spending and raising taxes.

Reverse Mortgage
A financial agreement that lets you borrow money against the equity in your home so that you receive a monthly, tax-free payment. This can reduce your ownership of your property.

Reviewed Date
The date on which an underwriter evaluates an underwriting requirement.

Revocable Trust
A trust agreement that can be altered, amended, revoked, or terminated and is subject to estate taxes.

Rider
An attachment that amends a contract or policy.

Rider Effective Date
Date the rider was placed on the basic policy.

Rider Status
Indicates the present status of the rider.

Rollover IRA
An IRA that allows an individual to consolidate retirement dollars from a number of sources, such as 401(k), 403(b), or governmental 457 plans.

Roth Conversion IRA
An IRA that is established by converting assets from a Traditional or Rollover IRA into a Roth IRA.

Roth IRA
A retirement savings vehicle in which contributions are made with after-tax dollars. Withdrawals of contributions can be made without taxes at any time. Withdrawals of earnings are taxable but only when the withdrawal is not a "qualified" distribution.

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SEP-IRA
A retirement plan for small business that allows the employer to make contributions toward his/her own retirement and the employees' retirement without getting involved in a more complex qualified plan. Eligible employees must meet all the following requirements: (a) Have reached age 21. (b) Have worked for the employer in at least three of the last five years. (c) Have received at least $550 in compensation from the employer in 2010. (Source: irs.gov)

SIMPLE 401(k)
This defined contribution plan involves the same contribution limits and qualifications as the SIMPLE IRA; however, the SIMPLE 401(k) plan does not have the same non-discrimination and top-heavy testing requirements as a regular 401(k) plan.

SIMPLE IRA
Savings Incentive Match Plan for Employees ("SIMPLE" plan) is a defined contribution plan that can only be established by employers with 100 or fewer employees who receive at least $5,000 in compensation during any two preceding years and expect to receive at least $5,000 in compensation in the current year. (Source irs.gov)

Savings Expense
Expenses that should be considered in your monthly savings expense total, e.g., savings accounts, IRAs, 401(k)s, and mutual funds.

Secured Debt
A debt in which your lender can take specific assets you pledged for repayment of the debt if you default on repayment of the secured debt.

Securities and Exchange Commission (SEC)
A federal agency charged with overseeing and regulating certain U.S. financial markets.

Short-Term Disability Insurance
Insurance that pays out benefits in the event you are disabled, but only for a limited period of time.

Side Fund Value
In addition to life coverage, some policies contain an annuity side fund. The amount shown (for a registered WSLife.com policyholder) is the current value in the annuity side fund.

Simple Interest
Interest paid or calculated on the original principal of a loan, without compounding.

Social Security
A federal program that provides monthly income benefits to qualified workers who retire or become disabled and to surviving spouses and dependent children of covered workers who have died.

Social Security Benefit
Monthly income benefit for qualified workers who retire or become disabled and to surviving spouses and dependent children of covered workers who have died.

Social Security Number (SSN)
A nine-digit identification number issued by Social Security.

Special Payment Type
Other policy payment methods that may be available.

Split Stock
A division of corporate stock in which a specific number of new shares are issued to existing shareholders.

Spouse Accidental Death Benefit
Additional death benefit to be paid if the death of the spouse is a result of an accident.

Spouse Death Benefit
Death benefit amount for the spouse covered by the spouse rider, providing that the basic policy and rider are in benefit.

Spouse Issue Age
Age of the spouse when the spouse rider was placed into benefit.

Spouse Smoker Code
A code to indicate if the spouse uses tobacco products.

Standard and Poor's (S&P)
A leading rating agency in the world of financial information and analysis that assigns financial strength ratings to life and health insurance companies.

Statements
Statements that may be viewable by registered WSLife.com policyholders include annual statements, billing statements, and tax statements (1099 and/or 5498).

Status
The current standing of a policy or contract.

Stock Bonus Plan
This defined contribution plan must generally follow the same rules as a profit-sharing plan except that distributed benefits usually are in the form of the employer's stock.

Stock Exchange
A formal organization, such as the New York Stock Exchange (NYSE), which is used by its members to exchange common stock. Stock exchanges are approved and regulated by the Securities and Exchange Commission (SEC).

Stock Market
The marketplace for trading common stocks.

Stock Option
An opportunity to purchase common stock at a certain price, often provided in addition to or in lieu of salary.

Stock Repurchase
When a company buys back outstanding shares of its common stock.

Stock Ticker
An alphabetic symbol assigned to securities and mutual funds that are traded on Wall Streets financial exchanges.

Stroke - 100% Benefit
Stroke means a cerebrovascular accident or infarction (death) of brain tissue caused by hemorrhage, embolism, or thrombosis producing measurable, neurological deficit persisting for at least 30 days following the occurrence of the Stroke. Stroke does not include Transient Ischemic Attack (TIA) or other cerebral vascular events.

Surrender Fee
An amount deducted from your policy value when you surrender your life insurance policy or annuity and receive the cash value.

Survival Period
Pertaining to Critical Illness Insurance, the number of days that the insured must live following a diagnosis in order to receive the policy benefit. The Western and Southern Life Insurance Company does not have a survival period; the full Critical Illness Insurance is paid upon diagnosis.

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1099R
A form that the IRS requires for the annual reporting of dividend and interest payments made to investors.

Tax Credit
A dollar-for-dollar reduction in your tax liability.

Tax Penalty
A penalty that may be assessed by the Internal Revenue Service (IRS) if money is withdrawn from tax-deferred retirement accounts before age 59¬Ĺ.

Tax Shield
A means of reducing your income taxes by taking an allowable deduction from your taxable income.

Tax-Deferred
Postponement of the payment of taxes on a retirement plan until the income payments begin.

Tax-Deferred Retirement Plan
A retirement savings plan that lets you make contributions and accumulate earnings tax-free until you receive them as benefits, at which time you are normally in a lower tax bracket.

Taxable Income
The amount of gross income you earn, minus allowable deductions.

Taxes Expense
Expenses that should be considered in your monthly taxes expense total would be local tax #1, local tax #2, federal taxes, state taxes, FICA-R, FICA-M, and other miscellaneous taxes.

Taxpayer Identification Number (TIN)
A nine-digit taxpaying identification number assigned by the United States Internal Revenue Service to an individual or business.

Term Insurance Rider
An attachment to a life insurance policy that provides additional coverage for a specific time period.

Term Life Insurance
Life insurance that provides coverage for a specific time period and offers no cash value.

Tobacco
Use of tobacco is one of the factors used to calculate a premium quote. After a policy is issued, policyholders will be allowed to switch to a non-tobacco class from a tobacco class if they sign a statement indicating they have not been a tobacco user in the last 12 months. This signed statement will become part of the policy. No additional underwriting is necessary. We will underwrite for tobacco use at all issue ages.

Top-Heavy Testing
A plan is considered top heavy if the present value of the cumulative accrued benefits under the plan for key employees exceed 60% of the present value of the cumulative accrued benefits under the plan for all employees.

Total Death Benefit
The value listed for Total Death Benefit assumes premiums are paid to current date.

Total Dividend Accumulations
The total unused dividend earnings plus interest that have accumulated in the policy to date.

Total Due
The total amount needed to pay a policy current.

Total PUA
Paid-up additional insurance coverage purchased by dividend earnings. The appropriate dividend option must be elected in order to use dividend earnings in this manner. Not all policies earn dividends or may be able to exercise the dividend option to purchase additional insurance coverage.

Traditional IRA
An IRA that may have deductible contributions. Earnings grow tax-deferred until withdrawn.

Treasury Bill (T-Bill)
A U.S. government-issued debt instrument that is exempt from state and local taxes. It usually has a maturity date of less than a year.

Trust
Property interest held by one person for the benefit of another.

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Underwriting
The process used by insurance companies to determine how much life or other types of insurance you can qualify for and at what price, based upon your risk factors.

Unified Credit
Now known as the applicable credit amount, it is a dollar-for-dollar offset against the federal estate tax. The amount of the credit cannot exceed the amount of the estate tax imposed. (Source: irs.gov)

Uninsured/Underinsured Motorists Coverage
Automobile insurance coverage required in some states that pays all costs (medical bills, lost wages, and pain and suffering) up to a limit set in the policy if you are in an accident with a hit-and-run driver, a driver who has insufficient insurance, or a driver with no insurance.

Universal Life Insurance
Permanent life insurance that builds tax-deferred cash value for you at a guaranteed minimum rate of return plus an additional return as credited by the insurance company. It also lets you change the amount of your premium payments and/or coverage amount within certain limits, depending on your circumstances or needs.

Unsecured Debt
A financial obligation in which your lender has no right to take specific assets for repayment of the debt if you default on the debt.

Unused Option 1
The dividend option selected was set to use any dividend earnings toward the premiums on the policy. If the modal premium is less than the dividend earnings, the remaining amount will appear as Unused Option 1 dividends and will be used to pay future premiums. (NOTE: This term specifically applies to registered WSLife.com policyholders.)

Utilities Expense
Expenses that should be considered in your monthly utilities expense total would be electric, gas, telephone, cell phone/pager, water/sewage, waste collection, cable TV, Internet Service Provider fees, and other miscellaneous utility expenses.

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Vacation Expense
Expenses that should be considered in your monthly vacation expense total would be lodging, rental cars, plane tickets, and other miscellaneous vacation expenses.

Variable Annuity
A type of annuity in which you choose the investment options. Your rate of return and the amount of money you accumulate will vary depending on the return on the investments you select. You are subject to investment risk, including loss of principal.

Variable Life Insurance
Life insurance coverage that allows you to choose the investment options. The value of your policy depends upon the performance of the underlying securities. You are subject to investment risk, including loss of principal.

Variable Rate Loan
A loan with an interest rate that changes depending on changes in a specified measure, such as the prime rate.

Variable Universal Life Insurance
Permanent life insurance that builds tax-deferred cash value and includes features of both variable and universal life insurance coverage. Like variable life, the value of the policy depends upon the performance of the underlying investments selected. Like universal life, the premium and coverage options are flexible, within certain limits. You are subject to investment risk, including loss of principal.

Vested
When you've worked for a company long enough to earn the right to keep your employer-sponsored benefits, such as profit-sharing and pension, even if you leave the employer.

Veterans Affairs (VA), Department of
Government department that guarantees home loans made to veterans of U.S. military service.

Volatility
A risk measurement that reflects the relative rate at which securities prices fluctuate.

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W/X/Y/Z

W2
A form (to be filed with a 1040 tax form) that lists earnings for the year, taxes withheld during the year, and Social Security tax information.

WSLife.com Site Verification Text
This text is provided as visual identification on the My Accounts Login – Password page to verify that the login page presented to you is truly from WSLife.com. This text should match exactly what you entered during the My Accounts Registration process. If it doesn't match, please do not complete your login. Call our Client Relationship Center at 1.866.832.7719 for immediate assistance.

Waiting Period
The number of days following policy issue/reinstatement before full benefits are provided. The Critical Illness waiting period is 90 days in most states. There are state variations.

Waiver of Premium Credit
This is an optional rider. It provides that one-twelfth of the annual Selected Premium (minimum annual premium during the first policy year if larger than the annual selected premium) will be credited to the policy by The Western and Southern Life Insurance Company if the insured person is totally disabled as defined by the terms in the policy. The disability must continue without interruption for at least six months.

The policyholder may have to pay some additional premiums while the insured is disabled if the Selected Premium being credited is not large enough to keep the policy and all riders in benefit.

Please contact your local Sales Representive or call the Claims Department at 1.800.926.1315 to learn more about the details of this rider.

Waiver of Premium Disability
A benefit available on some policies that provides that all premiums for the policy will be waived during the continued total disability of the insured person in accordance with the terms of the policy. Disability claims may be submitted through WSLife.com.

Wall Street
The New York City street and financial district that are home to the New York Stock Exchange (NYSE) and many prominent banks and brokerages. Also used generically to refer to the U.S. investment community.

Whole Life Insurance
Permanent life insurance that provides protection to age 100 as long as you pay the fixed premiums. Accumulates tax-deferred cash value that you can borrow against through an interest-bearing loan or receive if you surrender the policy.

Will
A legal document that defines your wishes for how you would like your property to be divided and distributed when you die.

Withholding Tax
Taxes withheld from an employee's income and sent to federal, state, and local authorities as payment for the tax liabilities for the year.

Yield
The profit or interest return on an investment.

Zero Coupon Bond
A bond sold at a deep discount that pays no interest until the bond matures. At maturity, the principal plus the interest earned is paid.

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* U.S. Department of Health and Human Services. Reducing Tobacco Use: A Report of the Surgeon General. Atlanta: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, 2000.

Securities, insurance, and annuity products are not a deposit, are not FDIC-insured, are not insured by any federal agency, have no bank guarantee, may lose value, and are subject to investment risk, including possible loss of principal.

The Western and Southern Life Insurance Company (NAIC code 70483) is domiciled in Ohio. It is licensed in all states except Alaska, Connecticut, Maine, Massachusetts, New Hampshire, New York, Vermont, and outside the United States.

Western-Southern Life Assurance Company (NAIC code 92622) is domiciled in Ohio. It is licensed in all states except Alaska, Maine, New Hampshire, New York, Rhode Island, and outside the United States.

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Last Updated: 12/14/2017