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

Updated December 05, 2016 -- For Administrators and Employees

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

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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