Insurance Terms & Definitions

Annuitant / Insured

The annuitant / insured is the party on whose life the contract is to be written. Since annuity and life insurance policies are governed by actuarial principles, the insurance carrier requires certain specific information about the annuitant/insured. On some applications the annuitant/insured is referred to as the designated annuitant, proposed annuitant, or proposed insured.

Contract Owner

The Contract Owner, also called the Participant or Owner, is usually the party who will be paying for the insurance contract and who has control over the contract. If there is a Contract Owner other than the Annuitant/Insured then you must answer ALL questions about the Owner: Full name, social security or tax identification number (since many times the Owner will be a trust or employer corporation), and address.

Beneficiary

All insurance/ annuities application forms provide space for a Primary and Contingent Beneficiary. In most cases you must provide the FULL NAME of the Beneficiary and the RELATIONSHIP of the Beneficiary to the Annuitant/Insured.

Premium Amount

All applications have a space in which to print the PREMIUM dollar amount. On some applications the Financial Advisor may have to also indicate the PRODUCT name.

• There are maximum and minimum purchase amounts for most products which must be observed. Consult insurance literature or the insurance Broadcast pages on the AdvantagE workstation for these purchase amounts.

Plan Type

On all applications, the plan type must be indicated or the application will be rejected.

Investment Allocation

Variable Annuity and Variable Life applications must list the names of funds to be purchased, and a percentage (not dollar amount) for each fund. All percentages must add up to 100%. This section is also called the purchase payment allocation.

Qualified Funds

Annuity products that are approved for qualified plans will have a space for the you to indicate the type of tax-qualified plan.

Replacement

All applications contain a question as to whether or not the insurance being purchased will replace or change any existing annuity or life insurance. If left blank, the application will be rejected . If "YES" is indicated, follow Company policy regarding insurance replacements .

Signatures

All pertinent signatures are required for the processing of insurance applications.

• The form must show the city and state where the contract was executed (along with the date of signing).

• The Annuitant's/Insured's signature is always required. If there are other parties, such as an Owner, a Custodian, Trustee, or Joint Owner, their signatures are also required.