Life Insurance Glossary
Not sure what all of the terminology surrounding life insurance means? Below are some of the most commonly used life insurance terms with simple and easy to understand explanations. Knowing your life insurance terms can help you understand your options and save money!
A provision or rider that allows you to receive all or part of the benefits of your policy before you die. These benefits are paid for terminal illnesses like AIDS, organ transplant, nursing home confinement, etc. The allowable reasons to receive such benefits varies from company to company. Also known as “living benefits”. More about Graded Death Benefits:
Graded Death Benefits Term
Graded Death Benefits Whole A provision or rider that pays more (i.e., double) in case you die as a result of an accident. Also called “double indemnity”. More about Graded Death Benefits: Graded Graded Death Benefits Term
Graded Death Benefits Whole A signed request for life insurance giving information about the prospective policyholder. The person, persons or entity designated to receive the death benefits from a life insurance policy when you die. A licensed insurance individual representing the insured not a particular company. Amount paid to the beneficiary upon your death. The date the insurance policy begins. The dollar amount on the face of the policy that will be paid by the company at death or at the maturity of the policy. The actual sum may be higher or lower depending on the options selected, outstanding policy loans or premium owed. A person on whose life an insurance policy is issued. A phrase that covers any form of life insurance with the exception of term. More about Types of Permanent Life Insurance. The person or party who owns an individual insurance policy. This person may be the insured, a relative, the beneficiary, a corporation, or another person. Money paid by the policy owner for coverage. Tables that companies use to classify risks. This is a rider to a policy which ensures that in the event of the death of the insured within a specified period of time, the policy will give back all premiums paid, in addition to the face amount of the policy. A policy addition that covers a separate condition or provides additional coverage. Things about you that affect your risk (e.g., older age, smoking, heart disease, occupation) Life insurance that generally offers no cash value feature payable to a beneficiary when an insured dies within a specified period. More about Term Life Insurance. The person who decides if the applicant is an acceptable risk and at what premium rate. A flexible premium life insurance contract that permits policy owners to adjust their policy’s premiums, timing of payments, and face amount from time to time. A type of whole life policy in which the death benefit and the cash value relate to the investment performance of a separate account fund that the policyholder selects. The separate account assets are invested in bonds, money market funds, stocks, and other instructions. This provision allows the insured to stop paying premiums when he or she has been disabled. A type of permanent life insurance that can cover the policyholder over the course of their entire life. More about Whole Life Insurance.
