Lapse
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The discontinuation of insurance without cash value when the required premium is not paid. If cash value exists, there may be nonforfeiture provisions available.
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Source:
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California Department of Insurance
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Large Cap
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Stocks of bigger companies whose market value is above a designated minimum, such as $5 billion.
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Source:
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National Association of Securities Dealers, Inc.
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Life Annuity
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A type of annuity in which the insurance company will pay you an income for as long as you live.
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Source:
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California Department of Insurance
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Life Income with Refund Annuity (Refund Annuity)
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Guarantees benefits will at least equal the annuity's purchase price.
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Source:
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Ohio Department of Insurance
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Life Insurance
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A policy that will pay a specified sum to beneficiaries upon death of the insured.
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Source:
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California Department of Insurance
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Lifecycle Funds
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A highly diversified mutual fund designed to remain appropriate for investors in terms of risk throughout a variety of life circumstances. Accordingly, lifecycle funds offer different risk profiles that investors can shift invested funds between in order to manage risk effectively as they move from youth to middle age to retirement. Although lifecycle funds all share the common goal of first growing and then later preserving principal, they can contain any mix of stocks, bonds, and cash.
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Source:
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403bCompare.com
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Living Benefits
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In some life insurance policies, benefits available before death, in such events as long-term, catastrophic or terminal illness. This benefit first became available when companies offering viatical settlements purchased the life insurance policies of terminally ill individuals from the insurance companies which issued the policies. After extracting a portion of the value of the policy for costs and profits, these companies offered the remainder of the death benefit to terminally ill policy holders. Insurance companies have different rules about how much money can be extracted and how close to death the holder must be to receive benefits early. The remainder of the value of the policy, minus interest charges, is awarded to the beneficiaries upon the death of the holder. Also called accelerated benefits.
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Source:
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403bCompare.com
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Load (Sales Charge)
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The amount that investors pay when they purchase (front-end load) or redeem (back-end load) shares in a mutual fund, similar to a commission. The SEC's rules do not limit the size of sales load a fund may charge, but the NASD's rules state that mutual fund sales loads cannot exceed 8.5% and must be even lower depending on other fees and charges assessed.
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Source:
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United States Securities and Exchange Commission
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Loan Fees
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Loan fees can vary from a small percentage of the amount you borrow to a rather substantial percentage of the total value of what you'd be eligible to borrow.
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Source:
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National Association of Securities Dealers, Inc.
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Loan Value
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The amount which can be borrowed by the policy owner from the company using the value of the policy as collateral. Usually the interest rate payable on the loan varies based on an index defined in the policy.
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Source:
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California Department of Insurance
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Lump Sum
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A single cash payment to the participant (or, under certain circumstances, to another designated party). The availability and payment of lump-sum distributions are subject to certain legal restrictions, and premature receipt of such distributions can have adverse tax consequences.
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Source:
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American Savings Education Council (ASEC)
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