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What are some key terms for life insurance and AD&D?

A glossary of key terms related to Life and Accidental Death and Dismemberment (AD&D) insurance.

Life Insurance and AD&D terminology

  • Amount of Insurance Currently Inforce: The insurance amount for the plan in which the employee is currently enrolled.
  • Basic Term Life: 100% employer paid life insurance plan.
  • Flat amount volume: For voluntary plans, when an employee elects additional coverage, that amount must be one of a predefined list of values set by the carrier.
  • Guarantee Issue: This is the amount which the employee can get without filling out an Evidence of Insurability (EOI) form. For voluntary plans and basic plans (with salary max).
    • If the employee elects an amount over the Guarantee Issue, they must fill out an EOI form and submit it to the insurance company.
  • Unit volume: For voluntary plans, when an employee elects additional coverage, that amount must be in certain increments.
  • Voluntary Life: 100% employee paid life insurance plan. Employee elects additional coverage.
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