Guide to Life Insurance Terms

Listed below is a utile usher to life insurance terms. It is a listing of definitions of life insurance terms that may or may not be familiar to you.

Accelerated Benefit Provision

A proviso in many new policies which will allow the policy proprietor to have got a part of the death benefit early if the insured individual is diagnosed with a terminal unwellness or permanently confined to a nursing home.

Accidental Death Benefit

A proviso added to a policy that supplies an additional benefit if the insured deceases from accidental causes.

Certificate

A written document provided to a individual insured under a grouping insurance policy that supplies grounds 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 of money assured lessenings each twelvemonth throughout the term of the policy.

Dependent protection

Where the protection is required on a lasting footing rather than just for a specified term.

Evidence of Insurability

Medical and other information about a individual applying for insurance that the life insurance company maintains confidential, but usages to make up one's mind whether the policy can be issued and what insurance premiums will be charged.

Face Amount

The amount to be paid to the donee when the insured dies.

Free Look

The right of the policy holder to have a clip time period of 10 or more than years to analyze an insurance policy, and if not satisfied, tax return it to the company for a full refund of all amounts paid.

Grace Period

A period of time after the insurance insurance premium owed day of the month when an delinquent premium may be paid without penalty. The policy stays in military unit throughout the period.

Guaranteed Insurability

An option that licenses the policyholder to purchase further declared amounts of life insurance at certain modern times in the future, without having to supply new grounds of insurability.

Illustration

A written 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 collectible on death additions and is particularly utile to avoid the sum of money of money assured being eroded by inflation.

Insured

The individual whose life is covered by a life insurance policy.

Lapse

The discontinuance of insurance without cash value when the required insurance insurance premium is not paid.

Level Term Life Insurance

In this word 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 frequence of premium payments during the policy year. Premium payments can usually be made on annual, quarterly, or monthly basis.

Mortality Table

A statistical tabular array screening the death rate for each age.

Nonforfeiture Options

A proviso in the policy that allows the policy holder to take how the cash value of the policy will be used if the policy is surrendered or oversights owed 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 insurance premiums have got already been paid, with no additional insurance insurance premium payment due.

Policy

The printed written 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 twenty-four hours and the calendar month the policy was issued. The first policy twelvemonth starts on the twenty-four hours of the month of issue, and ends on the day before the policy's first day of remembrance date.

Premium

The payment a policy holder is required to do to an insurance company to purchase insurance coverage and to maintain the policy in force.

Rated Policy

A policy issued with an further insurance insurance insurance premium to cover the extra hazard involved if an insured have got impaired health, a risky business or hobby.

Reinstatement

The restoring of a nonchurchgoing or surrendered policy to full military unit and effect.

Renewable Increasable Convertible Term Insurance

This contract combines the options of increasing the sum of money assured, converting the policy and renewing the contract.

Reviewable Term

Level term self-assurance with an option to regenerate the contract at the end of the term, without the need for further medical evidence.

Rider

A proviso added to a policy that supplies additional benefits.

Settlement Option

The mode in which the insured or donee may take to have the policy return paid.

Suicide Clause

A policy proviso which reduces or eliminates the amount to be paid if the insured deceases from suicide.

Surrender

To voluntarily terminate or call off a policy for its cash value.

Term Life Insurance

This type of policy runs for a specified clip period.

Underwriting

The procedure of evaluating appliers for insurance and classifying them fairly, so the appropriate premium rate may be charged

Waiver of Premium

A proviso added to a policy that volition relinquish the premium payments required by an insured during the sum disablement of the insured.

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