The price per cent or per mille (per Rs. 100 or per Rs. 1000) of insured value for Insurance lasting a year to longer. Short term rates are usually higher than the proportionate annual term rates.
Insurance Encyclopedia
Term rider
Additional insurance coverage that may be purchased when a permanent life insurance policy is bought. Both types of insurance are included in one contract.
Term Rule
The various formulae for computing the application of a rate where the period of the Policy is under or over one year. Short term rate will be usually higher than the proportionate annual term rates. In contrast long term rate would be less than the proportionate annual term rates. This is because of increased or deduced overhead costs.
***
A clause, found within a rating manual, detailing the term during which coverage is valid, and any discounts that apply to policy rates on policies of one year or more.
Terminal bonus
An additional bonus added to existing life insurance benefits when a ‘with profits’ policy becomes a claim by death or survival of the policy term. See BONUSES.
***
UK: the share of surplus allocated to holders of with-profits policies at the insurer’s discretion to policies maturing or otherwise terminating.
Terminal dividend
Extra dividend paid to a life insurance policyholder between the last policy anniversary date and the termination date of the policy. Also called terminal policy dividend .
Terminal funding
Pension arrangement, not common in the UK, except for a discretionary payment to meet the present value of a benefit when that benefit is due to commence.
Terminal funding (Pensions)
Retirement funding financed by a sum of money the individual’s employer sets aside for them at the time they retire.
Terminal illness
The onset of a terminal illness is treated under some life policies as an insured event. It means that the sum insured is paid prior to death.
Terminal policy dividend
See: terminal dividend .
Terminally ill (Health Insurance)
A status assigned to a person who has been diagnosed with an illness and is expected to die within a certain time frame, usually six months.