Glossary

At MetLife, we are committed to helping you get the solutions that are right for you and the ones close to you. That means we want you to understand your insurance coverage and the terms used in your policy.

In this section, we will explain some of the most commonly-used terms and help you feel more confident about your insurance decisions. So if there is any term you are unfamiliar with, please refer to the list below as your helpful guide.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Accident Death Insurance
Insurance providing payment if the insured's death results from an accident.

Agent
An authorized representative of an insurance company who sells and services insurance contracts.

Antiselection
The tendency of individuals who believe they have a greater-than-average likelihood of loss to seek insurance protection to a greater extent than do those who believe they have an average or a less-than-average likelihood of loss.

Application
A signed statement of facts made by a person applying for insurance and then used by the insurance company to decide whether or not to issue a policy. The application becomes part of the insurance contract when the policy is issued.

Automatic premium loan (APL) provision
A permanent life insurance policy nonforfeiture provision which states that the insurer will automatically pay an overdue premium for the policyowner by making a loan against the policy's cash value as long as the cash value equals or exceeds the amount of the premium due.

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B

Beneficiary
The person or party the owner of a life insurance policy names to receive the policy benefit.

Benefits
The amount payable by the insurance company to an insured.

Business Insurance
A policy which primarily provides coverage of benefits to a business. It is issued to indemnify a business for the loss of services of a key employee or a partner who becomes disabled.

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C

Claim
A request for payment of a loss which may come under the terms of an insurance contract.

Contingent Beneficiary
The party designated to receive the proceeds of a life insurance policy following the insured's death if the primary beneficiary predeceased the insured.

Conversion privilege
A term life insurance policy provision that allows the policyowner to change (convert) the term policy to a permanent plan of insurance without providing evidence that the insured is an insurable risk.

Cooling Off
Period within a specified period, the policyowner can cancel the life insurance contract and doesn't bear any financial penalty after policy issuance provided that no claim has been paid..

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D

Declination
The insurer's refusal to insure an individual after careful evaluation of the application for insurance and any other pertinent factors.

Double Indemnity
Payment of twice the basic benefit in the event of loss resulting from specified causes or under specified circumstances.

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E

Endorsements
An additional document, not a part of the original contract, which cites certain terms and which, when attached to the original contract, becomes a legal part of that contract.

Evidence of Insurability
Any statement or proof of a person's physical condition, occupation, etc., affecting acceptance of the applicant for insurance.

Examination
Health check for medical or life insurance.

Exclusions
An insurance policy provision that describes circumstances under which the insurer will not pay policy benefits that otherwise would be payable.

Expiry
The termination of a term life insurance policy at the end of its period of coverage.

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F

Face amount
The amount of death benefit payable under a life insurance policy

Fraudulent misrepresentation
A misrepresentation that was made with the intent to induce the other party to enter into a contract and that did induce the innocent party to enter into the contract

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G

Grace Period
Specified length of time from the due date will be allowed for payment for each subsequent premium. The Policy will remain in force during this period. If any premium remains unpaid at the end of its Grace Period, the Policy shall lapse and have no further value except as may be provided under the Non-forfeiture provisions.

Group Life
Written on a number of people under a single master policy, issued to their employer or to an association with which they are affiliated.

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I

Incontestability Clause
A clause in a policy providing that a policy has been in effect for a given length of time (usually two years), the insurer shall not be able to contest the statements contained in the application/ payment and void the policy (except in the case of fraudulent misrepresentation).

Insurable interest
The interest as insurance policy has in the risk that is insured. The owner of a life insurance policy has an insurable interest in the insured when the policyowner is likely to be benefit if the insured continues to live and is likely to suffer financial loss if the insured dies.

Insurance
Protection by written contract against the financial hazards (in whole or in part) of the happenings of specified fortuitous events.

Insured
The person whose life or health is insured under an insurance policy.

Insurer
The party to the insurance contract who promises to pay losses or benefits.

Irrevocable beneficiary
A life insurance policy beneficiary who has vested interest in the policy proceeds even during the insured's life time because the policyowner has the right to change the beneficiary designation only after obtaining the beneficiary's consent.

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K

Key person life insurance
Insurance that a business purchases on the life of a person whose continued participation in the business is necessary to its success and whose death would cause financial loss to the business.

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P

Policy Anniversary
Refer to the same date each year as the Policy Date.

Policy loan
A loan that an insurer makes to the owner of a permanent life insurance policy and that is secured by the policy's cash value.

Policyowner
The person or business that owns an insurance policy

Pre-existing condition
According to the most individual health insurance policies, an injury that occurred or a sickness that first appeared or manifested itself before the commencement date.

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R

Reinstatement
If a premium is in default beyond the Grace Period and subject to the Policy not having been surrendered for its Cash Value, it may be reinstated, at our absolute discretion, within a specified period after the due date of the premium in default subject to: (i) your written application for reinstatement; (ii) production of Insured's current health certificate and other evidence of insurability satisfactory to us; (iii) payment of all overdue premiums with interest; and (iv) repayment or reinstatement of any loan indebtedness outstanding at the due date of the premium in default plus interest.

Reinsurance
Insurance that one insurance company purchases from another insurance company.

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S

Suicide
If the Insured, whether sane or insane, commits suicide within a specified period (usually one year of policy commencement date), our liability shall be limited to the refund of premiums paid without interest. In the case of reinstatement, such refund of premiums shall be calculated from the commencement date.

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