Life Insurance Glossary
Life insurance can be confusing and overwhelming enough as a general concept. Never mind trying to define the terminology associated with this subject matter. Take advantage of our life insurance glossary so that you’re not left in the dark when it comes to learning about and understanding everything that you need to know.
Beneficiary: In regard to life insurance, the person or persons that will receive the funds and benefits of the insured’s policy once the insured passes.
Cash Value: Sometimes known as the ‘surrender value’, it refers to the amount of money that accrues or accumulates in an insurance policy. Depending upon the terms of the policy, this value can be withdrawn, borrowed, or used as collateral, if necessary.
Death Benefits: Simply put, the amount of money paid out to the beneficiary when the insured passes. Policies will generally boast a guaranteed death benefit, which will increase in investment over time.
Dividends: Generally, this term refers to the amount of money that is paid to insurance policy holders as based upon the earnings of the company. The concept can be equated to receiving rewards, bonuses, or incentives.
Insured: Person or persons covered under a particular term life or whole life insurance policy. Once the insured passes on, his or her policy is paid out to pre-determined, named beneficiaries.
Policy: A specific coverage plan that acts as both a contract and agreement between a particular individual or group of individuals and a specific insurance company. There are several different policy types available, including term life and whole life insurance policies.
Premiums: Additional or inflated costs intended to compensate for potential risks associated with a policy or policy holder.
Term Life Insurance: Insurance policies that can be purchased for specified, designated periods of time with lower premiums. Policies are generally available for spans ranging from between one and thirty years. Policy holders generally have the option to renew the policy once the term has ended.
Universal Life Insurance: A type of permanent or whole life insurance that is based on cash value. With such a policy, the insured has the ability to manipulate the terms of premiums or investment amounts, including the timing and frequency.
Variable Life Insurance: Differs from universal life insurance in that the value of the policy will alter depending upon the dollar or the status of the policy holder’s other accounts. Insurance type boasts investment components and death benefits.
Whole Life Insurance: Long term insurance policy, also known as permanent life insurance. Such policies generally maintain constant premiums that are to be paid annually throughout the life of the insured. These policies build cash value and typically feature a built-in savings component. Entire amount is to be paid out to the beneficiary upon the death of the insured.
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Life insurance can be confusing and overwhelming enough as a general concept. Never mind trying to define the terminology associated with this subject matter. Take advantage of our life insurance glossary so that you’re not left in the dark when it comes to learning about and understanding everything that you need to know.
Beneficiary: In regard to life insurance, the person or persons that will receive the funds and benefits of the insured’s policy once the insured passes.
Cash Value: Sometimes known as the ‘surrender value’, it refers to the amount of money that accrues or accumulates in an insurance policy. Depending upon the terms of the policy, this value can be withdrawn, borrowed, or used as collateral, if necessary.
Death Benefits: Simply put, the amount of money paid out to the beneficiary when the insured passes. Policies will generally boast a guaranteed death benefit, which will increase in investment over time.
Dividends: Generally, this term refers to the amount of money that is paid to insurance policy holders as based upon the earnings of the company. The concept can be equated to receiving rewards, bonuses, or incentives.
Insured: Person or persons covered under a particular term life or whole life insurance policy. Once the insured passes on, his or her policy is paid out to pre-determined, named beneficiaries.
Policy: A specific coverage plan that acts as both a contract and agreement between a particular individual or group of individuals and a specific insurance company. There are several different policy types available, including term life and whole life insurance policies.
Premiums: Additional or inflated costs intended to compensate for potential risks associated with a policy or policy holder.
Term Life Insurance: Insurance policies that can be purchased for specified, designated periods of time with lower premiums. Policies are generally available for spans ranging from between one and thirty years. Policy holders generally have the option to renew the policy once the term has ended.
Universal Life Insurance: A type of permanent or whole life insurance that is based on cash value. With such a policy, the insured has the ability to manipulate the terms of premiums or investment amounts, including the timing and frequency.
Variable Life Insurance: Differs from universal life insurance in that the value of the policy will alter depending upon the dollar or the status of the policy holder’s other accounts. Insurance type boasts investment components and death benefits.
Whole Life Insurance: Long term insurance policy, also known as permanent life insurance. Such policies generally maintain constant premiums that are to be paid annually throughout the life of the insured. These policies build cash value and typically feature a built-in savings component. Entire amount is to be paid out to the beneficiary upon the death of the insured.
