Beneficiary: The person who is named as eligible to receive the benefits or proceeds of a life insurance policy, i.e. a spouse, son, daughter, etc…
Cash Surrender Value: The amount that the life insurance policy is worth if the policy is surrendered or terminated.
Convertible Term Life Insurance: This feature permits a policy holder to exchange his or her policy for permanent coverage at some point in the future.
Free Look Period: A period of time included at the beginning of the policy that allows a buyer of a life insurance policy to look over the policy, and cancel the policy without penalty if the insured so desires
No-load Policy: “No-load” refers to no fees, or costs charged to the buyer upfront.
Permanent life insurance: This type of policy offers lifetime protection and it combines cash value with death benefits.
Risk factors: Are considered by underwriters when calculating or issuing a life insurance policy and determining the life insurance policy premium. Risk factors include age and health of the applicant, hobbies or profession of the proposed insured, etc…
Term life insurance: This type of life insurance provides coverage for a specific period of time, e.g. 5 years, 10 years, etc.
Universal life insurance: A form of permanent life insurance in which the policy benefit amount varies based on the investment return of the insurer, as well as the payments and additional contrition by the policy holder.
Variable life insurance: A form of permanent life insurance in which the policy benefit amount varies based upon the cash value which fluctuates due to the return on investment that the policy holder receives from the insurance company
Whole life insurance: A type of permanent life insurance in which the insured is covered for life, or up to age 100 (Age 121 in newer policies).
Recent Comments