Common Life Insurance Terms
Accidental Death Rider: Insurance providing payment if the insured's death results from an accident.
Attained Age: Your current age, within 6 months of your birthday. It is one of the factors that life insurance companies use to determine your premiums. The older you are, the greater chance you'll die while you are covered, the higher your premium.
Cash Value: The equity amount or 'savings' accumulation in a whole life or universal life policy.
Contestable Clause: A provision in an insurance policy setting forth the conditions under which or the period of time during which the insurer may contest or void the policy. Normally two years. The policy, then, cannot be contested.
Conversion Privilege: Allows the policy owner, before an original insurance policy expires, to elect to have a new policy issued that will continue the in surance coverage.
Death Benefit : The amount of money paid to the beneficiary when the insured person dies.
Double Indemnity: Payment of twice the basic benefit in the event of loss resulting from specified causes or under specified circumstances.
Face Amount: The amount of insurance provided by the terms of an insurance contract.
Grace Period: A period of time after the due date of a premium in which the policy remains in force without penalty.
Lapse: Termination of a policy due to non-payment of premiums within the grace period.
Level Term Ins.: Face value and premium remain unchanged from the date of approval to the date the policy expires.
Ownership: Policy owners may or may not be the insured. Ownership controls all rights and benefits of the policy.
Permanent Life: A term applied to life insurance policies other than group or term, usually having a cash value benefit.
Universal Life: An interest-sensitive life insurance policy that builds cash value.
Variable Life: Life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid.
Waiver of Premium: A rider or provision exempting the insured from paying premiums after being disabled for a period of time, usually 6 mos.
Whole Life Insurance: Life insurance kept in force for an insured's whole life as long as scheduled premiums are maintained. Whole life builds up cash values.
Accidental Death Rider: Insurance providing payment if the insured's death results from an accident.
Attained Age: Your current age, within 6 months of your birthday. It is one of the factors that life insurance companies use to determine your premiums. The older you are, the greater chance you'll die while you are covered, the higher your premium.
Cash Value: The equity amount or 'savings' accumulation in a whole life or universal life policy.
Contestable Clause: A provision in an insurance policy setting forth the conditions under which or the period of time during which the insurer may contest or void the policy. Normally two years. The policy, then, cannot be contested.
Conversion Privilege: Allows the policy owner, before an original insurance policy expires, to elect to have a new policy issued that will continue the in surance coverage.
Death Benefit : The amount of money paid to the beneficiary when the insured person dies.
Double Indemnity: Payment of twice the basic benefit in the event of loss resulting from specified causes or under specified circumstances.
Face Amount: The amount of insurance provided by the terms of an insurance contract.
Grace Period: A period of time after the due date of a premium in which the policy remains in force without penalty.
Lapse: Termination of a policy due to non-payment of premiums within the grace period.
Level Term Ins.: Face value and premium remain unchanged from the date of approval to the date the policy expires.
Ownership: Policy owners may or may not be the insured. Ownership controls all rights and benefits of the policy.
Permanent Life: A term applied to life insurance policies other than group or term, usually having a cash value benefit.
Universal Life: An interest-sensitive life insurance policy that builds cash value.
Variable Life: Life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid.
Waiver of Premium: A rider or provision exempting the insured from paying premiums after being disabled for a period of time, usually 6 mos.
Whole Life Insurance: Life insurance kept in force for an insured's whole life as long as scheduled premiums are maintained. Whole life builds up cash values.
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