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Definitions - M

Material Misrepresentation
A statement made to the underwriter before acceptance of risk, which is material to his decision in accepting and rating the risk.

Mature
When an insurance policy's guaranteed cash value equals the initial death benefit, it is said to "endow" or mature. Whole Life contracts typically endow at the insured's age 100.

Maturity Date
The date which the policy endows for its total face amount.

Maturity Value
The amount payable under a Whole Life insurance policy if the insured person lives to the last age on the mortality table on which the values of the contract were based.

Medical Examination
A medical history and exam completed by a doctor that the insurer may require of the applicant during the underwriting process - typically, paid for by the life insurer underwriting the application.

Medical Information Bureau (MIB)
A data pool service that stores confidential reports on the health histories of persons who, in the past, have applied for insurance from other member companies. Most insurers subscribe to this bureau to get more complete underwriting information.

Misrepresentation
Act of making, issuing, circulating, or causing to be issued or circulated any written or verbal statement that does not represent the correct policy terms. Also, use of a name or title for any policy or class of policies that does not reflect its true nature.

Moral Hazard
Hazard arising from any nonphysical, personal characteristic of a risk that increases the possibility of loss or may intensify the severity of loss for instance, bad habits, low integrity, poor financial standing.

Mortality
The frequency of deaths in proportion to a specific population.

Mortality Rate
The number of deaths in a group of people, usually expressed as deaths per thousand.

Mortality Table
A table showing how many members of a group, starting at a certain age, will be alive at each succeeding age. It is used to calculate the probability of dying in, or surviving through, any period, and for the valuation of an annuity. To be appropriate for a specific group, it should be based on the experience of individuals having common characteristics, such as sex or occupation.

Mortgage Protection Insurance
A type of Term Life policy which pays off the balance of a mortgage upon the death of the insured. Typically, the death benefit decreases according to a schedule that fits the declining payoff requirements of the mortgage.

Multi-Year Premium Mode
A premium payment option where future annual premiums are paid in advance at a discount.

Mutual Insurance Company
An insurance company in which the ownership and control is vested in the policy holders and a portion of surplus earnings may return to policy holders in the form of dividends. No capital stock exists.

Mutual Fund
Pooled money from shareholders that is invested in a variety of securities, including stocks, bonds and money market securities. Mutual funds offer the individual investor the advantages of diversification and professional management.

Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65. Premiums for these policies are higher since the premium payments are made during a shorter period.