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33 L Lapsed policy. An insurance policy that has ended because you stopped paying premiums and there was not enough money in the policy (cash value) to keep the payments up to date. Level premium life insurance. A type of life insurance where the premium you pay stays the same through the life of the policy. Licence. The official certification a provincial or territorial regulator gives an individual to show the individual is authorized to sell insurance. Life annuity. See "Annuity". Life Income Fund (LIF). A type of retirement plan. If you leave a pension plan you may choose to transfer the value of your pension to a LIF. At retirement, income payments from a LIF are subject to upper and lower limits each year, based on the amount in the account and the pension laws that apply to the LIF. Life income option. An option available to beneficiaries to receive their life insurance payout. With this option the insurance company pays the beneficiary regular, equal payments for as long as they live. Life insurance. A type of insurance that pays out when the insured person dies. Life insured. The person whose life is insured. Locked-in. A government restriction applied to a registered retirement savings plan or registered retirement income fund if amounts are transferred to that plan from a pension plan. It generally prevents withdrawals from the plan until you are 55 or older, and then limits any withdrawals so that the plan can be expected to provide a predictable income until age 90. See "Locked-in Registered Retirement Savings Plan", "Locked-in Retirement income fund" and "Life income fund". Locked-in Retirement Account (LIRA). See "Locked-in Registered Retirement Savings Plan". Locked-in Retirement Income Fund (LRIF). A type of retirement plan similar to a "Life income fund". Not all provinces permit pension amounts to be transferred to both a LIF and a LRIF. Locked-in Registered Retirement Savings Plan (Locked-in RRSP). A type of registered retirement savings plan containing funds transferred from a pension plan. You are generally unable to withdraw any amounts before age 55. Long-term care insurance. A type of insurance that provides financial support for people who become unable to care for themselves because of a chronic illness or disability. Long-term disability insurance. A type of group insurance that replaces part of your income if you become disabled and are unable to work. Long-term disability often starts after short-term disability ends and usually provides coverage for two or more years. M Material facts. Information or a fact you're aware of that could affect an insurance company's decision about whether to insure you and at what cost. For example, if you're being checked for a medical condition when you're applying for insurance, you must tell the insurance company. If you don't, the company could cancel your policy and refuse to pay any claims. (See "Contestability" and "Misrepresentation".) Management Expense Ratio (MER). The MER is the portion of the segregated fund or mutual fund used for covering management and administrative expenses. For a segregated fund, the MER includes the basic guarantee cost. The MER is shown as a percentage of your fund. Master policy. See "Group insurance". Master policyholder. See "Group policyholder". Maturity date. The date on which the insurance company pays a maturity benefit and the policy ends. For an endowment policy, annuity contract or segregated fund contract, the maturity date is a predetermined age or date. Medical Information Bureau (MIB). A non-profit association of Canadian life and health insurance companies established to provide for the confidential sharing of information among its members. Member insurance companies use MIB's services to help assess an individual's risk and eligibility during the underwriting of life, health, disability income, critical illness, and long-term care insurance policies. Reports from MIB may alert insurance companies to applicants who have provided incomplete or false information, and help them fight insurance fraud. Member. A person who is covered under a group plan. Misrepresentation. A false or misleading statement an applicant makes when applying for insurance. An insurance company can cancel the policy if they find you gave them false or misleading information in your application. (See "Material facts".) Misstatement of age. This happens when an insurance company is given the wrong age for the person insured. In some situations the insurance company can cancel the coverage when the wrong age is given. However, in many cases they adjust the coverage or premiums to take the correct age into account. Mutual insurance company. An insurance company owned by its policyholders (called participating policyholders). A mutual insurance company has no shareholders. Management is directed by an elected board. N Non-cancellable and guaranteed renewable policy. A type of insurance policy where the insurance company guarantees not to cancel the policy, increase the premiums or make changes to the policy until the insured person reaches a set age (usually 65). Typically, this involves disability insurance. Also known as a "non- cancellable policy". Non-contributory pension plan. A pension plan where the employee makes no contributions. The employer funds the entire cost of the plan. Non-forfeiture options. A feature of some permanent life insurance policies that provides the policyholder with choices if he or she stops paying premiums on a policy. Usually, the policyholder may choose one of the following: (a) cash (cash value or cash surrender value); (b) reduced paid-up amount of insurance; (c) automatic premium loan to continue the full sum insured; or (d) extended term insurance for the full sum insured over a specified period (not made available by all insurers). Non-participating Insurance. A policy that does not participate in the insurance company's distribution of earnings or dividends. O Off-set. See "integration of benefits". Office of the Superintendent of Financial Institutions (OSFI). The federal agency responsible for regulating and supervising banks, insurance, trust, loan and investment companies, federally-regulated pension plans, and co-operative credit associations that are licensed or registered by the federal government.