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Account Value: The value of the cash value account before deduction of early termination penalties (e.g., surrender charges). The account value is calculated by starting with the account value at the beginning of the policy year (BoY), adding premiums paid, subtracting monthly deductions for cost of insurance charges (COIs) and policy expenses, and adding investment interest/earnings (or subtracting investment losses if applicable in a Variable policy) to result with the end of year (EoY) account value. UL and WL account values are invested by regulation in high-grade corporate bonds and government-backed mortgages. VL account values are invested into a family of self-directed mutual-fund-like “separate accounts”. In both cases, any policy loans are generally considered part of the account value, and loan interest paid would be part of the policy investment interest/earnings.

Adverse Selection: Insurers experience and price for adverse selection when healthy, low-risk insureds requalify for different coverage at lower “select rates” in response to otherwise annually increasing premiums, whereas unhealthy, high-risk insureds cannot requalify for new coverage, and thus create a disproportionate increase in the likelihood the insurer will pay a claim to a member of a given pool of insureds, for which the insurer charges a disproportionately higher premium.

Age Last: Life insurance policy rates and premiums are dependant on the applicant/insured's age (i.e., a policy priced for a 40 year old will have different rates and premiums than the same policy priced for a 50 year old). However, different insurers calculate age differently. Certain insurers calculate age based on the applicant/insured's last birthday, and thus use their actual age for purposes of determining applicable rates and premiums (e.g., a person born June 11, 1962 who applied for a policy on January 1, 2002 would be offered 39-year-old rates/premiums).

Age Nearest: Life insurance policy rates and premiums are dependant on the applicant/insured's age (i.e., a policy priced for a 40 year old will have different rates and premiums than the same policy priced for a 50 year old). However, different insurers calculate age differently. Certain insurers calculate age based on the applicant/insured's nearest birthday, and thus use the age to which the applicant/insured's is closest for purposes of determining applicable rates and premiums (e.g., a person born June 11, 1962 who applied for a policy on January 1, 2002 would be offered 40-year-old rates/premiums).