Glossary


Life Insurance Terms

Investment Terms

L

Lapse policy

A policy that has been terminated due to the non-payment of the premium during the grace period. A possibility to re-instate the insurance coverage with the same premium & benefits is possible, however the life insured must qualify for this coverage again and pay for unpaid premiums.

Level Death Benefit

The total payable amount at the insured life's death remains the same for the life of the insurance policy

Limited life policy

A specific type of health insurance policy that covered only accidents or sickness

Long term care insurance

Insurance that provides benefits and financial protection for people who are not able to care for themselves due to cognitive impairment, disability, and chronic illness. Benefits under this policy include such things as medical equipment, adult day care, home health care, and hospice care.

Letter of intent

An agreement whereby an investor agrees to make a series of purchases of mutual fund units.

Leverage

The financial advantage of an investment that controls property of greater value than the cash invested. Leverage is usually achieved through the use of borrowed money.

Liabilities

All debts or amounts owing by a company in the form of accounts payable, loans, mortgages and long-term debts.

Life annuity

An annuity under which payments are guaranteed for the life of the annuitant.

Life expectancy adjusted withdrawal plan

A plan through which a mutual fund investor's holdings are fully depleted while providing maximum periodic income over the investor's lifetime.

Liquidity

Refers to the ease with which an investment may be converted to cash at a reasonable price.

Load

Commissions charged to holders of mutual fund units. (See sales charge.)

Long-term asset

A mutual fund that charges a commission to purchase its shares.

Long-term debt

Debt that becomes due after more than one year.

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