Nonforfeiture option in a life insurance policy that states if a policyholder discontinues premium payments, he or she can surrender the policy and receive the policy’s cash surrender value. Also see cash value.

1. Amount of money in a life insurance policy before adjustment for factors such as policy loans or late premiums that the policyholder will receive if the policyholder allows the policy to lapse or cancels the coverage and surrenders the policy to the insurance company. This feature is usually in whole life and universal life policies. Also called inside build-up and policy owner’s equity. 2. Amount available in cash on surrender or voluntary termination of a policy by its owner before it becomes payable by death or maturity. Also called cash surrender value option.

Type of defined benefit plan in which each person participating has an account that is credited with amounts that reflect the employer’s contributions and reflect investment interest. The balance in the account is called the participant’s accrued benefit. When the participant retires, he or she may receive the full account balance in a lump sum if the benefits are fully vested or may use the account balance to purchase an annuity.

Insurance that provides coverage for earthquake, flood, hailstorm, hurricane, nuclear accident, riot and civil commotion, tornado, and volcanic eruption. Some homeowners’ policies cover some of these catastrophes.

Term that refers to an illness that has the potential to financially ruin an individual or his or her family because of the high cost of medical care.

Maximum dollar amount that an active-duty family member has to pay out of their pocket under TRICARE for covered medical services in any fiscal year or enrollment period.

Severe medical injury or prolonged illness where the total cost of treatment will exceed the amount specified in the managed care contract.

Ongoing review of cases that involve patients who encounter catastrophic or very high medical expenses. Sometimes referred to as large case management. See case management.

Request for health benefits coverage for a case of severe injury or prolonged illness where it is foreseen that there may be very high medical expenses involved.