KS Life & Health key terms

A financial or close-family stake in another person's life such that the policyowner would suffer a genuine loss if that person died. Kansas requires it when the application is made, not at the time of death.

The person, trust, or entity named in a life policy to receive the death benefit. Primary beneficiaries are paid first; contingent beneficiaries are paid only if no primary beneficiary survives the insured.

The base death benefit printed on the policy's face page, payable if the insured dies while coverage is in force. It does not include riders unless a rider specifically adds to it.

The savings element inside a permanent life policy that builds over time and belongs to the policyowner. It may be borrowed against, withdrawn, or taken on surrender, reduced by any surrender charge.

The insurer's review of an applicant's health, finances, and habits to decide whether to issue coverage and at what rate. It relies on the application, medical records, and sometimes a paramedical exam.

A receipt issued when the first premium is paid with the application. It gives limited temporary coverage effective on the application or exam date, provided the applicant turns out to be insurable under the insurer's rules.

A state-required window, usually at least ten days after delivery, in which a policyowner may return a new policy and receive a full premium refund. The policy must disclose this right.

A set number of days after a premium due date, commonly 31 for life insurance, during which the policy remains in force. A death during that time is still covered, with unpaid premium deducted.

A provision that stops the insurer from voiding a policy for misstatements on the application once it has been in force for a set period, typically two years from issue. After that, coverage generally cannot be canceled for fraud.

Choices that let a whole life owner who stops paying premiums keep some value instead of losing everything: reduced paid-up insurance, extended term insurance, or cash surrender. Standard provisions law requires these options.

A loan from the insurer secured by a permanent policy's cash value. Interest accrues, and any unpaid balance plus interest is subtracted from the death benefit or surrender value if never repaid.

The ways a participating policyowner may use policy dividends: take cash, reduce premium, leave on deposit at interest, buy paid-up additions, or buy one-year term. Dividends are a return of divisible surplus and are not guaranteed.

Pure death protection for a stated number of years with no cash value buildup. It pays only if the insured dies during the term, and premiums typically increase at each renewal.

Permanent coverage with level premiums, a guaranteed death benefit, and guaranteed cash value that grows throughout the insured's lifetime. It stays in force as long as required premiums are paid.

Flexible permanent coverage that separates the death benefit from an interest-earning cash account. The owner may change premium payments and, with evidence of insurability, adjust the death benefit, subject to policy charges.

Permanent coverage whose cash value and sometimes death benefit move with the performance of investment subaccounts. Because the owner carries the investment risk, selling it requires a securities license.

A contract, usually issued by an insurer, that accumulates funds and then converts them into an income stream that can last for life. It is not life insurance; the risk transferred is the annuitant's longevity.

A tax-free transfer of value from one life policy or annuity to another, or from a life policy to an annuity, under Internal Revenue Code Section 1035. The replacement contract keeps the original cost basis.

A life policy that fails the seven-pay test because premiums were funded too quickly. Withdrawals and loans are taxed like annuity distributions, last-in first-out, and may face a 10 percent penalty before age 59½.

A rider or provision that lets the insured collect part of the death benefit early after diagnosis of a terminal or qualifying illness. The final death benefit is reduced by the amount advanced.

The amount an insured must pay out of pocket for covered services each plan year before the plan starts sharing costs. Preventive care is often exempt, and family deductibles may combine individual amounts.

The share of covered expenses the insured pays after the deductible is satisfied, such as 20 percent while the plan pays 80. It applies until the out-of-pocket maximum is reached.

A flat dollar charge the insured pays at the time of a covered service, such as $30 for an office visit. It may replace the deductible for that service or apply alongside coinsurance.

The most an insured pays in a plan year for covered care through deductibles, coinsurance, and copayments. Once it is met, the plan pays covered benefits in full for the rest of the year.

Rules that decide which of two or more health plans pays first when a person is covered twice, so total payments never exceed the charge. The primary plan pays, then the secondary plan considers the balance.

A medical condition diagnosed or treated before coverage started. Under the Affordable Care Act, major medical plans generally cannot exclude or surcharge for it, though short-term and certain excepted plans are treated differently.

The waiting time, counted in days or service days, before disability or long-term care benefits begin after a covered event. Choosing a longer elimination period lowers the premium.

A managed care plan that delivers care through its own provider network and usually requires a primary care physician to coordinate treatment and authorize specialist referrals. Non-emergency out-of-network care is generally not covered.

A managed care plan that contracts with providers at negotiated rates but still pays benefits for out-of-network care at a lower level. Members do not need referrals to see specialists.

A plan blending HMO and PPO features. In-network care is coordinated through a primary care physician, while out-of-network care is permitted with higher deductibles, coinsurance, and paperwork.

Coverage that replaces part of earned income, often 60 to 70 percent, when illness or injury prevents the insured from working. Benefits depend on how the policy defines disability and on the elimination period.

A benefit that pays a reduced amount when the insured returns to work at lower earnings or cannot perform every prior duty, instead of requiring complete inability to work.

Coverage for custodial and skilled care in a nursing home, assisted living facility, or the insured's own home when chronic illness or cognitive impairment prevents safe self-care.

Basic self-care tasks: bathing, dressing, eating, toileting, transferring, and continence. Long-term care policies normally begin paying when the insured cannot perform a stated number of them.

The federal health program for people 65 and older and certain disabled persons. Part A covers hospital care, Part B covers medical services, and Part D or Part C plans add drug or managed care options.

A Medicare Supplement policy sold by private insurers that helps pay Medicare's deductibles, coinsurance, and copayments. Federal rules standardize plans into lettered options, and it works alongside Medicare rather than replacing it.

A joint federal-state program providing health coverage to low-income people, including long-term nursing home care. Each state sets eligibility rules and covered benefits within federal guidelines.

A federal law allowing employees and dependents to keep group health coverage for a limited period after a qualifying event such as job loss, paying the full premium plus a small administrative fee.

A renewability provision requiring the insurer to continue coverage while premiums are paid, but allowing rate increases that apply to an entire class of policyholders rather than to one individual.

The strongest renewability guarantee: the insurer cannot cancel the policy or raise premiums before a stated age, such as 65, as long as premiums are paid. It is common in disability income policies.