Life insurance fund

The accumulated savings and contributions of policyholders held against the life companies’ liabilities to pay future claims. The funds are increased yearly by premiums paid and investment income received, less payments made to policyholders, management expenses (including commission), taxation and transfers to shareholders’ funds, where appropriate. Life funds are credited with all or part of any capital appreciation in asset values.

Life insured

The person whose life is the subject-matter of the life insurance contract. If A effects a policy on the life of B, his partner, B is the life insured. This is a ‘life of another’ policy.

Lifetime Disability Benefit

US: A benefit to help replace income lost by an insured person as long as he/she is totally disabled, even for a lifetime. Disability income payable for the life of the insured as long as he is totally disabled.
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A payment to help replace income lost by an insured person for as long as he is totally disabled, even for lifetime.
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MEDICAL,USA: Insurance contract terms that provide for payment of disability income for an insured’s lifetime as long as he or she is totally disabled.