The amount that must be paid by the insured before benefits are paid by the insurer.
Defined Benefit Program
A plan in which specified benefits are offered at a stated cost to employees who have no choice-other than to participate in the plan.
Defined Contribution Program
A plan in which the employer pays a set premium for selected benefits that may change as the group's needs change.
This is life insurance issued in fractional amounts on the spouse and children of an insured employee.