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Face Amount

Is the amount stated on a life insurance policy that will be paid upon policy maturity or death. The amount excludes Dividend Addition or additional amounts payable under Accidental Death or other special provisions.

Family Policy

Is a life insurance policy that typically provides insurance on all or several family members in one contract. It generally provides whole life insurance on the principal earner and term insurance on the spouse and their children, including newborns, usually after reaching an age of 15 days.

Federal Deposit Insurance Corporation

Is an independent agency created to maintain stability and public confidence in the US financial system.


A person or organization legally appointed and authorized to control or manage assets, for example, whilst administering a pension plan. Fiduciaries are legally obligated to discharge their duties solely in the interest of the plan’s participants and their beneficiaries. They are accountable for any actions that may be construed by courts as breaching that trust.

Financial Underwriting

Is an insurer's procedure for the assessment of a proposer’s net worth insurability limit which analyzes justification and suitability for the death benefit value requested.

Fixed Account

The fixed account is the general account within a Variable-Universal Life (VUL) policy that invests primarily in high quality bonds and mortgages. The principal and minimum interest guarantees are backed by the general assets of the insurer and its ability to meet its financial obligations.

Fixed Annuity

Is a deferred annuity contract in which the life insurance company credits a fixed rate of return on premiums paid for the term of the contract. The insurance company offering the contract guarantees both earnings and principal.

Flat Extra

If, due to impaired health or other reasons, such as a dangerous occupation, the applicant does not qualify for insurance at standard rates, an insurance policy is issued at an additional cost. When this cost is levied as a rate per $1,000, it is referred to as a flat extra. It can be charged on a temporary or permanent basis.

Flexible Premium Policy or Annuity

Is a life insurance policy or annuity contract that allows the amount and frequency of premium payments to be varied. Typically found on Universal Life policies, it enables clients (within IRS maximum premium guidelines) to adjust their premium payment schedule in line with any specific needs. Sufficient premiums will be required to prevent their policy from lapsing.

Fraternal Life Insurance

Is life insurance underwritten or provided by fraternal orders or societies to their members under either a legal reserve plan or an assessment plan.


Insurance fraud occurs when any act is committed with the intent to fraudulently obtain some benefit or advantage to which a person would not otherwise be entitled or when someone knowingly denies some benefit that is due and to which someone is entitled. The perpetrators in these instances can be either insurance company employees or claimants.


Free Look

The right of the Policy Owner to have a period of ten or more days to examine an insurance policy and if not satisfied, return it to the insurance company for a full refund of all premiums paid.

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