LOMA Glossary

The LOMA Glossary of Insurance and Financial Services Terms

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waiting period. For disability insurance, see elimination period. For group insurance, see probationary period.

waiver. The voluntary or intentional relinquishment of a known legal right.

waiver of premium for disability (WP) benefit. A supplemental life insurance policy or annuity contract benefit under which the insurer promises to give up its right to collect premiums that become due while the insured is disabled according to the policy or rider’s definition of disability.

waiver of premium for payor benefit. A supplemental life insurance policy benefit which provides that the insurance company will waive its right to collect a policy’s renewal premiums if the payor—the person paying the policy premiums—dies or becomes totally disabled.

waiver of surrender charge provision. A provision in an annuity contract which states that no surrender charge will be assessed on surrenders or withdrawals in excess of specified levels under certain conditions, such as disability, poor medical condition, terminal illness, unemployment, and confinement in a nursing home or hospital.

war exclusion provision. A life insurance policy provision that limits an insurer’s liability to pay a death benefit if the insured’s death is connected with the war or military service as defined in the insurance policy.

warranty. A promise or guarantee recognized by law that a statement of fact is true. The statement is made by a party to a contract at the time of contracting, becomes a part of the contract, and if not literally true, gives the other party a ground to avoid the contract. Contrast with representation.

welfare benefit plan. According to the Employee Retirement Income Security Act (ERISA) in the United States, any plan or program that an employer establishes to provide specified benefits, such as life and health insurance benefits, to plan participants and their beneficiaries.

well-written business. In insurance sales, a policy sale in which (1) the company (or producer) identifies the specific needs of the customer, and the customer recognizes that those needs are important, (2) the insurance product actually meets those needs, and (3) the customer is financially capable of paying the premiums. Also known as quality business.

whole life insurance. A type of cash value life insurance that provides lifetime insurance coverage usually at a level premium rate that does not increase as the insured ages.

wholesaler. In insurance sales, a sales intermediary appointed by an insurer to promote the insurer’s products to third-party distributors and to provide these distributors with marketing support.

will. A legal document that directs how an individual’s property is to be distributed after her death.

window premiums. Additional premiums that most insurers will accept during the first contract year of a single premium deferred annuity, after the initial single premium has been paid.

with profits policy. See participating contract.

withdrawal. A transaction in which the owner of a cash value life insurance policy or a deferred annuity contract elects to receive a portion of the policy’s cash value while the policy is in force or of the contract’s accumulation value during the accumulation period. Also known as a partial surrender or policy withdrawal. A full withdrawal, also known as a surrender, results in the termination of the policy.

withdrawal charge. A charge imposed on the owner of a deferred annuity when the owner withdraws more than a stated percentage of the annuity contract’s accumulation value during the accumulation period.

workers' compensation. Government-mandated insurance that provides benefits to covered employees and their dependents if the employees suffer job-related injury, disease, or death. Workers’ compensation programs exist in many countries, including Canada and the United States.

worksite marketing. In insurance sales, a method for distributing insurance products to people at their place of work on a voluntary, payroll-deduction basis.

WP benefit. See waiver of premium for disability benefit.

write-down. A permanent reduction in the book value of an asset.

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