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Term Insurance

Life insurance that normally does not have cash accumulation and is issued to remain in force for a specified period of time, following which it is subject to renewal or termination. Term insurance is considered to be temporary coverage. Remember, the word “term” means time. Term policies only cover you for a period of time and you must die in the term in order to be covered. Whole life, however, is permanent in that it covers you until you die.

Tertiary Beneficiary

Next in line behind the Contingent Beneficiary to receive policy proceeds if both the Primary and Contingent Beneficiaries are deceased. Also known as the Final Beneficiary, which is usually the estate of the insured. The word “Tertiary” means “third.”


Any act of stealing. Theft includes larceny, burglary, and robbery.

Time-Element Coverage

Provides protection for Indirect Loss that occurs when, following a Direct property loss, there is a time lapse before the property can be used again. Includes Business Income, Contingent Business Income, and Extra Expense.

Time Limit on Certain Defenses

A Uniform Provision on Health Insurance policies specifying that after a given number of years (usually two) no statements (except fraudulent misstatements) made in the application shall be used to deny a claim or void the policy. Also known as the Incontestability Clause. A Health policy is contestable for the first two years and incontestable thereafter, except for fraud.

Total Disability

A degree of disability from injury or sickness that prevents the insured from working. This definition actually varies by company. In other words, on Disability Income insurance, you get what you pay for. If this definition is broad, such as you are totally disabled if you cannot perform your own job, the policy will be expensive. However, if the definition states that you are totally disabled only if you are confined to the hospital, it won’t cost much.

Travel Accident

A form of accident insurance limiting coverage to accidents occurring while the insured is traveling. This is a form of AD&D insurance, and is considered to be a limited policy since it covers accidents only. These policies have many exclusions, such as no coverage if your injury occurs while you are under the influence of alcohol.

Trip Transit Policy

An Inland Marine transportation policy, similar to the Annual Transit policy, but designed to cover a specific shipment.


Inducing a policyholder by misrepresentation to terminate an existing Life policy in order to replace it with a new policy. Producers are naturally tempted to engage in “replacement,” since the commission paid on new policies generally exceeds the commissions paid on renewal policies. Replacement is not illegal, unless it is detrimental to the client. However, “twisting” the facts in order to induce replacement is an illegal and/or unethical trade practice.