Life Interest A form of property ownership, also known as a life estate, giving the holder (the life tenant) an interest in the property to possess, use, and enjoy the property, or income from the property, for the duration of their life. Upon the death of the holder, the remainder interest automatically reverts to the original owner or passes to a beneficiary (known as the remainder person).

Lifetime Gift A gift made during someone's life, as opposed to a post-mortem gift.

Limitations The maximum amount of insurance coverage that is available under a policy. Coverage limitations can often be increased for an additional premium.

Limited Health Insurance A health insurance contract that provides limited coverage in special circumstances.

Living Benefits Provision In the event of a terminal illness where medical and long term care costs occur, life insurance benefits that are payable to the insured prior to death through the use of an accelerated death benefit rider (ADBR). Accelerated or 'living' benefits paid will reduce the amount of death benefits payable to the beneficiary upon the insured's death.

Living Trust A revocable or irrevocable trust created during the life of the grantor that is also known as an inter vivos trust.

Long-Term Care Insurance An insurance contract that pays benefits in the event the insured needs long-term medical care in a facility other than a hospital.

Long-term Coverage Disabilities that last more than two years are said to be long-term. Disability policies that pay benefits for long-term disabilities are said to offer long-term coverage.

Long-term Disability Insurance A disability insurance policy that provides coverage in the form of monthly income payments for as long as the insured remains disabled (usually up to age 65).

Loss Frequency Method Procedure used by insurance companies to project the number of future losses within a given time frame. This prediction of future losses is used as the basis for setting policyholder premiums.

Loss of Income A definition of disability based on income loss, not on loss of occupation. Loss-of-income disability definitions are used in residual disability (income replacement) policies.