Code of Federal Regulations Title 20. Employees' Benefits § 20.416.1230 Exclusion of life insurance

(1) Life insurance. Life insurance is a contract under which the insurer agrees to pay a specified amount upon the death of the insured.

(2) Insurer. The insurer is the company or association which contracts with the owner of the insurance.

(3) Insured. The insured is the person upon whose life insurance is effected.

(4) Owner. The owner is the person who has the right to change the policy. This is normally the person who pays the premiums.

(5) Term insurance. Term insurance is a form of life insurance having no cash surrender value and generally furnishing insurance protection for only a specified or limited period of time.

(6) Face value. Face value is the basic death benefit of the policy exclusive of dividend additions or additional amounts payable because of accidental death or under other special provisions.

(7) Cash surrender value. Cash surrender value is the amount which the insurer will pay (usually to the owner) upon cancellation of the policy before death of the insured or before maturity of the policy.

(8) Burial insurance. Burial insurance is insurance whose terms specifically provide that the proceeds can be used only to pay the burial expenses of the insured.