Listed below is a useful guide to life insurance terms. It is a list of definitions of life insurance terms that may or may not be familiar to you.
Accelerated Benefit Provision
A provision in many new policies which will allow the policy owner to receive a portion of the death benefit early if the insured person is diagnosed with a terminal illness or permanently confined to a nursing home.
Accidental Death Benefit
A provision added to a policy that provides an additional benefit if the insured dies from accidental causes.
Certificate
A document provided to a person insured under a group insurance policy that provides evidence that the coverage exists.
Convertible Term Insurance
These policies allow conversion, without further medical evidence, to a different type of policy from an insurance company's range.
Decreasing Term Insurance
The sum assured decreases each year throughout the term of the policy.
Dependent protection
Where the protection is required on a permanent basis rather than just for a specified term.
Evidence of Insurability
Medical and other information about a person applying for insurance that the life insurance company keeps confidential, but uses to decide whether the policy can be issued and what premiums will be charged.
Face Amount
The amount to be paid to the beneficiary when the insured dies.
Free Look
The right of the policy holder to have a period of ten or more days to examine an insurance policy, and if not satisfied, return it to the company for a full refund of all amounts paid.
Grace Period
A period of time after the premium due date when an overdue premium may be paid without penalty. The policy remains in force throughout the period.
Guaranteed Insurability
An option that permits the policyholder to buy additional stated amounts of life insurance at certain times in the future, without having to provide new evidence of insurability.
Illustration
A document used in life insurance sales presentations showing year-by-year numbers indicating how a policy will work.
Increasing Term Insurance
Under this option, the benefit payable on death increases and is particularly useful to avoid the sum assured being eroded by inflation.
Insured
The person whose life is covered by a life insurance policy.
Lapse
The discontinuation of insurance without cash value when the required premium is not paid.
Level Term Life Insurance
In this form a policy will pay out a fixed sum on death during the term.
Loan Value
The amount which can be borrowed by the policy holder from the company using the value of the policy as collateral.
Mode of Premium Payment
The frequency of premium payments during the policy year. Premium payments can usually be made on annual, quarterly, or monthly basis.
Mortality Table
A statistical table showing the death rate for each age.
Nonforfeiture Options
A provision in the policy that allows the policy holder to choose how the cash value of the policy will be used if the policy is surrendered or lapses due to non-payment of premium.
Ownership
All rights, benefits, and privileges under a policy controlled by the insured.
Paid-Up Insurance
A life insurance policy where all premiums have already been paid, with no further premium payment due.
Policy
The printed document issued to the policy holder by the company stating the terms of the insurance contract.
Policy Year
A one-year period starting on the day and the month the policy was issued. The first policy year starts on the date of issue, and ends on the day before the policy's first anniversary date.
Premium
The payment a policy holder is required to make to an insurance company to purchase insurance coverage and to keep the policy in force.
Rated Policy
A policy issued with an additional premium to cover the extra risk involved if an insured has impaired health, a hazardous occupation or hobby.
Reinstatement
The restoring of a lapsed or surrendered policy to full force and effect.
Renewable Increasable Convertible Term Insurance
This contract combines the options of increasing the sum assured, converting the policy and renewing the contract.
Reviewable Term
Level term assurance with an option to renew the contract at the end of the term, without the need for further medical evidence.
Rider
A provision added to a policy that provides additional benefits.
Settlement Option
The manner in which the insured or beneficiary may choose to have the policy proceeds paid.
Suicide Clause
A policy provision which reduces or eliminates the amount to be paid if the insured dies from suicide.
Surrender
To voluntarily terminate or cancel a policy for its cash value.
Term Life Insurance
This type of policy runs for a specified time period.
Underwriting
The process of evaluating applicants for insurance and classifying them fairly, so the appropriate premium rate may be charged
Waiver of Premium
A provision added to a policy that will waive the premium payments required by an insured during the total disability of the insured.
You may freely reprint this article provided the author's biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Ebooks, Scripts,
Websites, and more... Regardless of what some people might think, medical insurance will... Read More Term life insurance can offer protection for a small business... Read More Do you love someone deeply enough to spend your hard... Read More The Health Savings Account (HSA) is becoming well-known as an... Read More The online discussion forum has emerged as the medium of... Read More Accidents, personal injuries and insurance claims are here to stay.... Read More The road to saving on auto insurance is something that... Read More Cheap term life insurance is easier to get than most... Read More Most people don't realize that there are 7 different homeowners... Read More The biggest single investment most people make in their lifetime... Read More Owning a home is a dream for most of us,... Read More Following a few simple tips and taking these measures will... Read More Here is a useful guide to Home Insurance. Home insurance... Read More Our money saving auto insurance tips were written for one... Read More It seems as though the price of everything is on... Read More According to a study by LifeSearch, the number of women... Read More A question you might ask yourself is: why must we... Read More A new financial tool is now available for senior citizens.... Read More My wife and I recently purchased a new home in... Read More Does the current amount that you pay on your insurance... Read More Every state requires that drivers carry liability insurance. The liability... Read More It is now possible to thoroughly research and buy health... Read More No Claims Bonus is a term used to describe the... Read More Accidents almost always make your insurance rates increase. Whether or... Read More The information you need about the best term life insurance... Read More
Adsense
websites
Types of Long Term Care Insurance
Term Life Insurance - A Safeguard for Small Business Owners
The Life Insurance Policy and Its Best Kept Secret
Health Savings Accounts (HSA): Do I Still Submit My Bills to Insurance When Using HSA Money?
Independent Insurance Agents Unite! Insurance and Financial Discussion Forums are all the Rage
Accident Factoids
Saving on Auto Insurance: The Road to Reduction
Cheap Term Life Insurance is Available Everywhere
Do You Know What The 7 Home Insurance Plans Are?
Why Do You Need Homeowners Insurance?
Mortgage Life Insurance
Eleven Money-Saving Auto Insurance Tips for Senior Drivers
Guide to Home Insurance
Free Money Saving Auto Insurance Tips
How Do I Lower My Auto Insurance Premiums?
Sisters Are Insuring Themselves: Finance is the New Feminism
Types of Auto Insurance Coverage Explained
Life Insurance Settlement
Tips for Buying a New Home
Cure The Insurance Blues By Lowering The Cost of Your Premiums
Used Car Insurance
Health Insurance Online - Save Today
Car Insurance No Claims Bonus Explained
How Much Can My Auto Rate Increase After One Accident?
Everybody Wants The Best Term Life Insurance Quote
Mortgage insurance, to pay off a mortgage, is something you'll... Read More
Following a few simple tips and taking these measures will... Read More
If you're trying to decide between health insurance plans, you'll... Read More
Only 61% of adult Americans have life insurance (down from... Read More
Most people with health insurance, especially employer paid health insurance,... Read More
The information you need about the best term life insurance... Read More
Thousands of people have work related commitments and in order... Read More
Do you have many claims? If so, you should do... Read More
Over the course of the last ten years, car insurance... Read More
Health insurance is something that everyone needs today. The rising... Read More
How do you put a value good health? For many... Read More
California high risk truck insuranceIf your are in need of... Read More
The average auto insurance policy price is derived from a... Read More
If you're planning an overseas trip, you need travel health... Read More
Getting your business up and running is exciting, challenging and... Read More
While Legal Romantics would like to characterize the trial of... Read More
Not a year goes by that insurance rates go up.... Read More
Life Insurance is a legal contract between you and a... Read More
Personalisation, Digitalisation, Mobilisation, these 3 words represent your life today.... Read More
As we go through life our needs change. A Young... Read More
Here's the good news: with improvements in medical technology and... Read More
Automobile insurance standard coverage is the basic amount of insurance... Read More
Non-profit groups in this day and age need to watch... Read More
Health insurance plans have changed dramatically over the past ten... Read More
This article is written by a 27 year old female... Read More
Insurance |