GLOSSARY OF TERMS

W TERMS

Waiver of Premium: Rider or provision included in most life insurance

policies exempting the insured from paying premiums after he or she

has been disabled for a specified period of time, usually six months.

Waiver of Subrogation: Also known as 'transfer of rights of recovery,'

the relinquishment by an insurer of the right to collect from another

party for damages paid on behalf of the insured

Whole Life Insurance: Life insurance that is kept in force for a person's

whole life as long as the scheduled premiums are maintained. All Whole

Life policies build up cash values. Most Whole Life policies are

guaranteed as long as the scheduled premiums are maintained. The

variable in a Whole life Policy is the dividend which could vary

depending on how well the insurance is doing. If the company is doing

well and the policies are not experiencing a higher mortality than

projected, premiums are paid back to the policy holder in the form of

dividends. Policyholders can use the cash from dividends in many ways.

The three main uses are: it can be used to lower or vanish premiums, it

can be used to purchase more insurance or it can be used to pay for

term insurance.

Workers' Compensation: Protection which provides benefits to

employees for injury or contracted disease arising out of and in the

course of employment. Most states have laws which require such

protection for workers and prescribe the length and amount of such

benefits provided