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Tax-Deferral |
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Postponing the payment of income taxes until some point in the future, often at retirement. Generally, the cash value growth inside life insurance is eligible for deferral, unless the amount of cash received through surrender exceeds the policy's tax basis. Any additional surrenders beyond the basis must be reported as taxable income. Taxes may be deferred on modified endowment and annuity contracts until the owner takes possession of the cash benefits. |
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Tax-Payer Identification Number (TIN) |
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The policy owner's Social Security number. The insurer must have a certified tax-payer identification number to avoid backup withholding when there is taxable gain. |
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Ten-Year Level Term |
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A Term Life insurance policy with a level death benefit where the premium remains the same for ten years. |
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Term Conversion |
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Many Term policies come with conversion rights guaranteeing that, for a specified period of time, the policy can be converted to a permanent plan for the equivalent amount of coverage, without having to provide additional evidence of insurability. |
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Term Life Insurance |
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A life insurance plan that provides death benefit protection only and for a specified period of time (term). The policy pays benefits only if the insured dies during the term. |
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Termination |
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Termination of a policy upon the policy owner's failure to pay the premium within the grace period. |
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Tertiary Beneficiary |
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In life insurance, a beneficiary designated as third in line to receive the proceeds or benefits if the primary and secondary beneficiaries do not survive the insured. |
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Third-Party Owner |
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A policyowner who is not the insured. |
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Thirty-Year Level Term |
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A Term Life insurance policy with a level death benefit where the premium remains the same for thirty years. |
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Transfer for Value |
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Transfer of the ownership of a life insurance contract for valuable consideration. |
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Trust |
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A legal instrument allowing one party to control property for the benefit of another. |
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Trust |
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A legal instrument allowing one party to control property for the benefit of another. |
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Twenty-Five Year Level Term |
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A Term Life insurance policy with a level death benefit where the premium remains the same for twenty-five years. |
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Twenty-Year Level Term |
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A Term Life insurance policy with a level death benefit where the premium remains the same for twenty years. |
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Twisting |
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The practice of inducing by misrepresentation, or inaccurate or incomplete comparison, a policy holder in one company to lapse, forfeit or surrender his insurance for the purpose of taking out a policy in another company. |
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