Lapse
Termination of a policy because of failure to pay the premium.

Health Plan
A generic term referring to a specific benefit package offered by an insurer.

Universal Life Insurance
A flexible premium policy that combines protection against premature death with a cash value account that earns a money market rate of interest. Death benefits can be altered during the life of the policy within limits, generally subject to a medical examination. Once funds accumulate in the cash value account, the premium can be paid at any time but the policy will lapse if there isn’t enough money to cover annual mortality charges and administrative costs.

Underinsured Motorist
Is coverage for any bodily injury resulting from the operation of a motor vehicle, which is covered under a liability policy at the time of the injury causing occurrence.

Cancellation
Termination of contract of insurance in force by voluntary act of the insurance company or insured, effected in accordance with provisions in the contract or by mutual agreement.

Term
Relating to a contract of health insurance that makes no provision for renewal or termination other than by expiration of the policy term. Life insurance issued for a term of years, after which it expires without value.

Pro Rata
Distribution of the amount of insurance in one policy, among the several objects or places covered, in proportion to their value or to the amounts shown. The distribution of liability among the several insurance companies having policies on the risk.

Term Insurance
Life insurance that covers the policyholder for a specific period of time, the “term” specified in the policy. It pays a benefit to a beneficiary only if the insured dies within that specified period of time. Term life policies are renewable.

Co-Payment
A co-payment is a patient's share of a health-care bill. It usually is a small amount - $5 or $10 per office visit.

Whole Life Insurance
Cash value life insurance which combines protection against premature death with a savings account. Premiums are at fixed rates and guaranteed and remain the same throughout the life of the policy.