Lapse Ratio. : The ratio of the number of Life Insurance contracts lapsed within a given period to the number in force at the beginning of that period. (LI)
Ledger Cost. : The net cost of a Life Insurance contract which is found by subtracting the cash value of the contract at the end of a given year from the premiums paid, less all dividends. (LI)
Legal Reserve Life Insurance Company. :
A Life insurer that maintains the reserves required by the jurisdiction within which it operates. (LI)
Level Death Benefit Option. : Under Universal Life insurance, the level death benefit option provides the greater of (1) the face amount of the policy at the time of death, or (2) a stipulated percentage of the accumulation value. (LI)
Level Premium Insurance. : That form if insurance for which the premium remains the same throughout the life of the contract. Most Whole Life Insurance is paid for in this way. The amount of a level premium is higher than needed for the protection afforded in the early years of the contract but less than needed for protection in the later years. It is a method of leveling off the cost of insurance so as not to have it increase each year until it becomes inaffordable. See also Net Level Premium. (LI)
Level Term Insurance. : A type of term policy where the face value remains the same from the effective date until the expiration date. See also Term Insurance. (LI)
LIAMA. : See Life Insurance Agency Management Association. (LI)
Lien Plan. : (1) A plan for issuing coverage on substandard risks under which a standard premium is paid but less than the full face amount of the policy is payable if death occurs within a certain period of years. It is rarely used and is even illegal in some states. (2) A plan under which an impairment of the insurer's assets if offset by pro rata liens against policies to be deducted from the face amount when paid as a claim. (LI)
Life Conservation. : The administration of efforts to preserve human life through research, legislation, and appeals to society. (LI)
Life Expectancy Term Insurance. : A form of Term Life Insurance that provides protection for a person's "expectation of life." This becomes the term of the policy, as opposed to the ordinary Term policies which are for a given number of years or to a stated age, such as 65. (LI)
Life Expectancy. : The average number of years remaining for a person of a given age to live as shown on the mortality or annuity table used as a reference. (LI)
Life Income. :
A settlement option under which equal installments are paid as long as the beneficiary lives, even if the principal has been exhausted. (LI)
Life Insurance (Generic). : A contractual system of risk sharing under which contributions are accumulated and redistributed to meet the economic consequences of the uncertain duration of life. (LI)
Life Insurance (Narrow). : An agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured, or under other circumstances specified in the contract, such as total disability. (LI)
Life Insurance Agency Management Association (LIAMA). : An organization that, through research, seeks solutions to the problems of administering the agency force of a Life insurer. (LI)
Life Insurance Association of America (LIAA). : Formerly an organization that served as the legislative relations arm of a large segment of the Life Insurance business. Now a part of the American Council of Life Insurance. (LI)
Life Insurance Marketing and Research Association (LIMRA). : An organization that, through research, seeks solutions to the problems of administering the agency costs of a Life insurer. (LI)
Life Insurance Trust. : A type of Life Insurance policy where a trust company is named as the beneficiary and distributes the proceeds of the policy under the terms of the trust agreement. (LI)
Life Insurance, Ordinary. : See Ordinary Life Insurance. (LI)
Life Insurance, Straight. : See Ordinary Life Insurance. (LI)
Life Insurance, Whole Life. : See Whole Life Insurance. (LI)
Life Insurers Conference. : An organization that provides for exchange of information on management problems among the member insurers. (LI)
Life Office Management Association (LOMA). :
An organization serving a large proportion of the Life Insurance business by providing educational programs relating to administrative and technical procedures within the industry. It confers the designation of Fellow, Life Management Institute (FLMI) upon those who complete a prescribed course of study. (LI)
Life Paid Up At Age. : A form of limited payment Life Insurance that provides protection for the whole of life but with payment of premiums to stop at a particular age, thus paying up the policy. A common form would be Life Paid Up At Age 65. (LI)
Life Underwriter Political Action Committee (LUPAC). :
A lobbying organization established by the National Association of Life Underwriters. (LI)
Life Underwriter. : Usually, a Life Insurance agent. It can be more narrowly defined as a risk appraiser. See also Risk Appraiser. (LI)
Life Underwriting Training Council (LUTC). : An organization that prepares and administers training programs for Life Insurance agents. (LI)
Lifetime Policy. : (1) A policy guaranteed renewable or noncancellable to age 65 or some later date. (2) A policy paying disability benefits for life. (LI)
Limited Payment Life. : A Life Insurance contract providing protection for the whole of life with premiums paid for an indicated number of years. See also Life Paid Up At Age. (LI)
Limited Policies. : (1) Health Insurance contracts, such as those offered by newspapers to their customers, with low limits and somewhat restricted forms. (2) Policies paid only upon the occurrence of certain contingencies, such as cancer, in contrast to policies covering all contingencies other than those excluded. (LI,H)
LIMRA. : See Life Insurance Marketing and Research Association. (LI)
Loan Value. : A term which refers to the amount of money an insured can borrow using the cash value of his Life Insurance policy as security. (LI)
LOMA. :
See Life Office Management Association. (LI)
Lump Sum. :
A method of settlement whereby the beneficiary receives the entire proceeds of a policy at once rather than in installments. (LI)
LUTC. : See Life Underwriting Training Council. (LI) )
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