Glossary- Life Insurance, Health Insurance, Retirement

TDS

An endorsement or attachment to a life insurance policy that provides additional term coverage for the amount specified. If the insured dies during this time, the designated beneficiary(ies) can receive death benefit proceeds..

Terminal Bonus

This part of the surplus distributed is added only when the policy becomes a claim in most cases by maturity or death. It is usually expressed as a percentage of the reversionary bonuses.

Third Party

This is when a person or a company takes a policy on the life on another.

Trust

This occurs when a person(s), known as settlor sets up an obligation, known as a trust for the benefit of person(s) known as beneficiaries. Trustees are appointed to carry out the terms of trust.