Incapacity: The lack of ability to act on your own behalf.

Incidents of Ownership: Includes a variety of rights and powers that an insured decedent may have held over a life insurance policy; the possession of one or more of these incidents of ownership within three years of death will bring the policy proceeds into the insured's gross estate.

Income Beneficiary: The beneficiary of a trust who is entitled to receive the income from it.

Income in Respect of a Decedent (IRD): Income earned by a decedent or income to which the decedent had a right prior to death, but which was not properly includible in his or her gross income prior to death

Incontestable Clause: A provision in a life insurance policy that prevents the insurer from revoking coverage because of alleged misstatements by the insured after a specified period, usually about two years.

Individual Retirement Account (IRA): A tax-deferred retirement account for an individual that can be established by a person with earned income. Earnings accumulate tax-deferred until the funds are withdrawn beginning at age 59 ½ or later (or earlier, with a 10% penalty).

Initial Reserve: In life insurance, the reserve at the beginning of any policy year.

Installment Sale: A sale in which taxable gain is recognized over a number of years as the payment for the property sold is received.

Insurable Interest: The expectation of a monetary loss that can be covered by insurance.

Insurance: Pooling of fortuitous losses by transfer of risks to insurers who agree to indemnify insureds for such losses, to provide other pecuniary benefits on their occurrence, or to render services connected with the risk.

Insurance Trust: An irrevocable trust established to own an insurance policy or policies and thereby prevent them from being included in the insured's estate.

Insuring Agreement: That part of an insurance contract that states the promises of the insurer.

Intangible Property: Property that cannot be touched and that represents real value such as bonds, stock certificates, promissory notes, certificates of deposit, bank accounts, contracts, leases, and other similar items.

Inter vivos Trust: A type of trust created during the settlor's lifetime.

Interest Credit: The nonguaranteed amount credited to the policy's account value based upon a rate of interest specified by the insurance company.

Interest Option: Life insurance settlement option in which the principal is retained by the insurer and interest is paid periodically.

Intergenerational Succession: Succession in property ownership in which the property is transferred from one generation to another; usually from members of an older generation to members of a younger generation.

Intestate: A person who dies without having made and left a valid will.

Intestate Succession: The distribution of property to heirs according to the statutes of the state of residency upon the death of a person who owned the property but did not leave a valid will.

Investment Gain/Loss: The total increase or decrease in account value as a result of investment division performance during the policy year.

Irrevocable Beneficiary: Beneficiary designation allowing no change to be made in the beneficiary of an insurance policy without the beneficiary's consent.

Irrevocable Trust: A trust that cannot be changed or terminated after it is established.

Aliases (separate with |): I.