Whole Life Insurance

Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A
Accidental Death Benefit - ADB
This is a supplementary benefit that provides an additional benefit for accidental loss of life.
Accrued Interest
This amount is the loan interest charged, from the last policy anniversary date, on the Loan Amount.
Accumulation
This is a dividend option by which the policyowner allows the dividends to remain on deposit with us to accumulate at interest.
Automatic Premium Loan
This is an option by which you have authorized Prudential to facilitate the payment of a Scheduled Premium by an automatic loan against your policy's Cash Value to keep your policy in effect.

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B
Beneficiary
The person, persons, or entity that will receive the Total Death Benefit payable at the Insured's death, or at the death of an insured spouse or dependant child.

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C
Cash
This is a dividend option by which the policyowner is issued a check for the entire dividend amount.
Cash Value
This is the value of the policy today, if there are no dividend credits and no Policy Debt. This is often referred to as guaranteed cash value. This is the starting point for determining Total Cash Value.
Children Level Term Rider
A rider that provides term insurance coverage for each eligible child. In addition, it allows each eligible child the opportunity to convert term insurance to permanent insurance. Refer to your policy for more information.

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D
Dividend Accumulations
These are dividends that have remained on deposit with us to accumulate at interest.

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E
Estate
The property belonging to a deceased person that must be administered and distributed in accordance with a will or the laws of intestacy.

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G
Gibraltar Accidental Benefit - GAB
This is a supplementary benefit that provides an additional benefit for accidental loss of life. Under certain conditions, it also provides a benefit for accidental loss of limbs or sight.

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L
Living Needs Benefit
This is a supplementary benefit that allows a policyowner, under certain circumstances, to obtain a reduced Net Death Benefit prior to the Insured's death.
Loan Amount
The principal amount of any outstanding loan. Refer to your policy for information on loans.

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M
Modified Endowment Contract (MEC)
Our records indicate that this policy has recently become classified as a modified endowment contract (MEC). This could affect the future tax treatment of your policy. Please call your Prudential customer service office to determine if you can reverse MEC status.

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N
Net Cash Value
This amount is equal to your Total Cash Value minus any Policy Debt. It is the amount you would have received, before tax withholding, if any, if you surrendered your policy today.
Net Death Benefit
This amount is equal to your Total Death Benefit minus any Policy Debt. It is the amount that would be paid to the beneficiary(ies) if the Insured died today. The Net Death Benefit will be reduced by any portion of a premium due up to the date of death.

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O
Option to Purchase Additional Insurance (OPAI)
This is a supplementary benefit that allows the policyowner to purchase additional permanent insurance on the Insured, as specified in the policy, on certain future dates without providing evidence of insurability.

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P
Paid-up Life Insurance Addition
This is a dividend option by which a policyowner uses dividends as a single premium to purchase Paid-up Additional Insurance.
Paid-up Additional Insurance Amount
This is fully Paid-up Additional Insurance that generally results from dividends and/or payments to certain riders.
Policy Debt
The Loan Amount plus the Accrued Interest to date.
Policy Face Amount
This is the amount of insurance shown as the "Basic Amount", "Basic Insurance Amount" or "Face Amount" on the Contract Data page of your policy.
Purchase One-Year Term
This is a dividend option by which a policyowner uses dividends as a single premium to purchase One-Year Term insurance.

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R
Reduce Loan
This is a dividend option by which a policyowner uses dividends to reduce the Policy Debt on the policy anniversary.
Reduce Premiums
This is a dividend option by which a policyowner uses dividends to reduce the premium that is due on the policy anniversary.

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S
Supplementary Benefits
These are additional features that enhance your policy through riders and endorsements. Some may increase the Death Benefit payable. Others do not increase the Death Benefit, but serve to enhance your policy.

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T
Termination Dividend
This is an additional dividend amount paid upon either the death of the Insured or the surrender of your policy. This amount is not guaranteed and may change.
Total Cash Value
This amount equals the Cash Value, plus any Termination Dividend, plus any Dividend Accumulations, plus the cash value of any Paid-up Additional Insurance. It is the amount you would have received if you surrendered your policy today, and did not have any Policy Debt or tax withholding.
Total Death Benefit
This amount equals the Policy Face Amount, plus all the riders on the Insured, plus any Paid-up Additional Insurance, plus any Dividend Accumulations, plus any Termination Dividend. It is the amount that would be paid to the beneficiary(ies) if the Insured died today and did not have any Policy Debt. The Total Death Benefit will be reduced by any portion of a premium due up to the date of death.

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W
Waiver of Premium
This is a supplementary benefit which, under certain circumstances, allows us to waive the premiums due if the Insured becomes and remains disabled, as defined in your policy, for more than six months. Special conditions apply for Insureds who become disabled at age 60 and over.

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