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GLOSSARY
Lapse - termination of a policy because the end of the grace period has not paid the premium.
Level premium - the premium in a policy which remains the same over the period of time premiums are paid. Normally an insured would pay a smaller premium in the beginning years and a greater premium in the later years of a policy. The level premium eliminates this premium fluctuation by accumulating the excess premiums paid in the early years to a reserve for later years.
Life expectancy - average number of years remaining for a person of a given age to live, as shown on the mortality table.
Life insurance - insurance which will pay a specified sum of money if the individual insured by the policy dies during the policy term.
Limit of liability - Although this term is virtually never used in conjunction with life insurance, in the context of life insurance it would mean the face amount (also called death benefit) of a life insurance policy.
Limited Policy - a contract which covers only certain specified diseases or accidents
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