An arrangement in which premiums, cash values and death benefits are divided between two parties, usually an employer and employee. In business situations, this may result in the employee having to report an economic benefit cost for tax purposes. Standard Northwestern Mutual's underwriting classification for smokers who are unimpaired. Standard Plus Northwestern Mutual's underwriting classification for non-smokers who have minor health impairments. In disability insurance, a premium structure that permits an insured to acquire a regular DI policy at a lower than regular premium at the time of issue, until age 35.
Premiums increase later at specified times.
Stock A certificate of ownership of a corporation representing a share of its capital and surplus. An insurance company formed and capitalized through the sale of shares of stock. Those purchasing the stock are owners and share in the company's earnings. Common stockholders vote on the company's board of directors, on matters involving company policy, and may receive a distribution of earnings through stock dividends declared by the company. Risk A life insurance applicant who faces a greater likelihood of early death than the group experience on which the Standard premium rates are calculated.