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.
Insurance Encyclopedia
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.
Termination
Cancellation of an insurance policy by an insurance company when premium is not paid, if insured dies, or a dependent is no longer eligible for coverage. Health insurance benefits are not paid for medical services received after the date of termination.
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The formal ending of a reinsurance agreement by its natural expiry, cancellation, or commutation by the parties. Terminations can be either on a cutoff or runoff basis. Under cutoff provisions, the parties’ obligations are fixed as of the agreed cutoff date. Otherwise, obligations incurred while the agreement was in force are run-off to their natural extinction.
Termination (Life Insurance/General Insurance Terms)
A general term used to refer to the end of coverage under a certain policy, usually due to the policy’s term ending or due to cancellation. In life insurance, this term refers to the end of coverage of a policy due to the insured no longer paying the premiums. In this case the insured would receive a nonforfeiture value, as outlined in the contract.
Termination date
Month, day, and year a health insurance policy’s coverage ends.
Termination expenses
Dollar amount costs of processing death benefit claims and cash surrenders of a life insurance policy.
Termination of Adventure
Under a Marine Time Policy, the time when the insurance expires. Under a Marine Voyage Policy the time the vessel arrives at destination. Under a Marine Cargo Policy the time when the insurer’s liability cease because the goods have arrived at their destination or the cover is cut short by the terms of the policy.