Insurance Glossary

Insurance Gobbledygook Made Simple

Plain english explanations of insurance terms used by agents, companies and lawyers and found in your insurance policies.

LLapsed policy a policy terminated because of failure to pay the premium(s).Level premium insurance a policy in which the payments remain the same over the life of the policy.Liabilityany legally enforceable obligation.Liability insurance insurance that pays when you are liable for injuries to other Persons or damage to their property.Lifetime maximumis the total dollar amount the plan will pay for all types of medical expenses, for all benefit periods, while the insured person is alive and covered under the plan.Limitationsthe conditions or circumstances for which benefits are not payable or are limited.Limited payment life insurance whole life insurance where the policyholder pays premiums for a specified number of years, or until death.Limits the maximum amount of benefits the insurance company agrees to pay on a loss.Loading administration costs you pay when buying life insurance.Loan borrowing against your policy’s accumulated cash value. The borrowed amount is deducted from the death benefit until you have repaid it.Lossthe basis for a claim under an insurance policy.Loss ratiothe dollar amount an insurer pays in claims compared to the amount it collects in premiums.Low value policy a life insurance policy with a high premium and small death benefit.