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.