Glossary of life insurance terms department of financial. A person licensed by the state insurance authority to sell insurance products. Insurance terminology north american training group. Policy the printed legal document stating the terms of insurance contract that is issued to the policyowner by the company.
In life and health this document would be called an actuarial memorandum. Columbus life insurance company naic code 99937, cincinnati, ohio, is licensed in the district of columbia and all states except new york. Gerber life insurance offers adult and childrens life insurance to help you protect your familys future. It may also include disablement and can be offered as an option in connection with credit cards and auto loans. An agreement between a life insurance company and a policyowner or beneficiary in which the company retains at least part of the cash sum payable under an insurance policy and makes payment in accordance with the settlement option chosen. Term life insurance provides life insurance coverage for a designated period of time. Here are definitions of the most common terms and phrases youll find in a policy. Understanding life insurance terms preferred insurance services.
A term life insurance policy in which all the premiums paid to the insurance company are returned to the policyowner at the end of the term if he or she has outlived the term. Adjustable life insurance age at entry age at maturity age limits annual premium annuity annual premium payment mode. An adjustment rider to a life insurance policy that. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non disclosed or fraudulently misrepresented. Life insurance glossary of common terms we recognize you are looking to make the best decisions for you and your family by comparing online insurance quotes. Learning about life insurance can be a daunting task, especially if one doesnt know the meaning of the specialized words, of which there are many. It is the proposers or life insureds age when the policy matures or the contract comes to an end. Notification to the insurance company that a loss has occurred and a demand of payment for the loss, as provided by the terms of the insurance policy. Glossary of life insurance terminology gerber life insurance.
The terminology used is peculiar to insurance but the. Insurance definitions, dictionary, glossary and terms. Guaranteed issue an insurance policy provision that allows a certain amount of insurance or type of insurance to be issued without medical evidence of insurability. Life insurance is a financial safety net for your family. Term life insurance is a life insurance product that is called temporary because its meant to protect you for a certain term period. Jun 02, 2016 a general rule of thumb with life insurance 101 is that the younger and healthier you are, the less you will pay. Life insurance contracts usually stipulate that no payment will be made and the contract will become void if. The selling of a life insurance policy by a terminally ill person, so that person can receive a benefit from the policy while still alive and the purchaser of the policy can receive a. Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. A type of life insurance with a limited coverage period.
A term life insurance policy that covers the policyholder for a duration of 10, 15, 20 or 30 years or however many years the insured person chooses as the coverage term. Declaration part of the insurance policy that identifies the named insured, policy period and limit of insurance. Glossary of insurance terms the az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. A type of life insurance that is in effect for a set number of years, usually anywhere between five to 30 years. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and. The named beneficiary receives the proceeds and is thereby safeguarded from the. A type of life insurance policy that provides protection for a specified period of time.
So if in 20 years your kids will be out of college and your mortgage will be paid off then a 20 year term policy for those amounts may be fitting. Basically term life insurance is good to protect against temporary financial risks like a mortgage, your kids college tuition, etc. Benefits are paid only if something happens to you within that specified period, known as a term. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer.
Your attained age is a factors life insurance companies use to determine premiums. Life insurance policy gives you the protection against financial losses resulting from the insured individuals death. If you have any questions about the use or meaning of a term or expression in any particular product or literature, you should raise them with the provider concerned. The distribution serves to reduce the premium the policyowners had paid. It provides you and your family the financial security and certainty to deal.
Life insurance for dummies a quick and simple guide. Line of business classification of business written by insurers. Life insurance is completely different in that it is based on when, and not if occurrence, thus making life insurance products more complex. Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage. Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values. Sbi life accidental death benefit linked rider, uin.
Apr 02, 2019 life insurance is a protection against financial loss that would result from the premature death of an insured. Once you get older the need for life insurance changes. If youre feeling baffled by all the new terminology, read through our glossary of life insurance terms and get some. Direct loss a loss which is a direct consequence of a peril. Term insurance life insurance payable only if death of insured occurs within a specified time, such as 5 or 10 years, or before a specified age. Glossary of insurance terms you may need to know columbus. Consumer glossary national association of insurance. Glossary of life insurance terms arizona department of. An insurance company that accepts the risk transferred from. Here is some of the basic terminology for life insurance. A life insurance policy issued to a group of people, usually through an employer, union or association.
Flexible benefits plan cafeteria plan irs 125 plan a benefit program under section 125 of the internal revenue code that offers employees a choice between permissible taxable benefits, including cash, and nontaxable benefits such as life and health insurance, vacations, retirement plans and child care. Operating with more than 100 years of experience in the life insurance industry and with its corporate core value customer first, daiichi life vietnam always tries its best to provide the best financial products and services in order to meet vietnamese customers diversified needs as well as to gain their trust. Term life insurance on which the ammount of protection gradually becomes smaller, but the premiums remain the same during the term face value the ammount of insurance that was originally purchased and will be paid paid upon death of the insured. Glossary of life insurance terms department of financial services. Do you have a spouse or children who you want to provide for in life and in death. Glossary of health coverage and medical terms page 1 of 4 glossary of health coverage and medical terms this glossary has many commonly used terms, but isnt a full list. Life assured is the one for whom the life insurance plan is purchased to cover the risk of untimely death. Basic insurance terms and definitions, life insurance terms and definitions, basic insurance terminology, insurance glossary pdf, important insurance terms, insurance terms and concepts, health insurance terminology and insurance terms for dummies. Age is typically the most important factor in calculating your premium rate. Actuary business professional who analyzes probabilities of risk and risk. Deductible the amount of money the policyholder must pay on a loss. In this life insurance glossary, we have defined many of these terms used throughout this website and, perhaps in your policy.
The items on a balance sheet showing the value of property owned. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. Answers to health questions on the policy application. Life insurance is a protection against financial loss that would result from the premature death of an insured. If, at any time you come across an insurance term in. We feel it is important for you to be informed about the rates available to you in order to make intelligent decisions about your coverage. The insurance company evaluates the underwriting risk based on the insureds physical condition and, in some cases, financial condition. A verification of the financial records, usually payroll or receipts, of an. Term life insurance is a basic policy with no additional components, such as a cash value, but it is generally the best life insurance policy option for most people due to its lower cost.
Term used in universal life policies to describe the total of all premiums and earnings credited to the account before deductions for any expenses, loans, and surrenders. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. Term life insurance is a standard insurance policy that provides coverage for a specific period of time. It comes in forms of 5 year term, 10 year term and all the way up to 30 and sometimes 40 year terms. Glossary of insurance terms national insurance brokers association. This type of insurance costs less than whole life insurance, and so, in general, pays the highest immediate benefit for your premium dollar. This fundamental difference is what makes life insurance more like a financial product and why more life insurance consumers are exploited as compared to other insurance categories. Agent the insurance company representative who sells policies on behalf of the insurer. If you pass away, your life insurance policy will pay a lump sum of money to your beneficiaries.
The agent represents the insurance company in all transactions. Limited payment life insurance a form of whole life insurance with a predefined number of premiums to be paid. Infiniteam insurance comprehensive risk management. This glossary is intended as a general aid to help you understand some of the commonly occurring phrases and jargon used in the insurance world. Our glossary of the most common terms, phrases, and concepts will help you brush up on life insurance definitions in. Insurance glossary understanding common insurance terms. Browse our life insurance glossary of common terms intelliquote. The amount covered by the terms of an insurance contract. Insurance concerned with the insiders legal liability for injuries to others or damage to other persons property. The coverage that is issued by a life insurance company. A part of this goal was to create a helpful life insurance guide of commonly used life insurance terms and definitions to give you a better understanding of the common terminology used.
Genderfemales typically get lower rates because of longer life expectancy. Various rights which may be exercised under the policy contract by the policy owner. It is the proposers or life insureds age at the time of filling the proposal form or entering into a contract. Also called the coverage amount, face amount or sum insured. Dec 27, 2019 life insurance terminology doesnt have to be confusing. Not sure where to start when it comes to learning about and shopping for life insurance. No information given herein replaces or overrides the terms. Although a common core of benefits may be required, the employee can determine how his or her remaining benefit dollars are to be allocated for each type of benefit from the total amount promised. Once that period or term is up, it is up to the policy owner to decide whether to renew or to let the coverage end. Limited policies health insurance coverage for a certain ailment, such as cancer. Indexed life insurance a whole life plan of insurance that provides for the face amount of the policy and, correspondingly, the premium rate, to automatically increase every year based on an increase in the consumer price index cpi or another index as defined in the policy. Amount stated in a policy contract as payable upon the death of the person whose life is being insured. This glossary will help you understand the basic types of coverage along with the terms included in your.