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Guide to Life Insurance Terms
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
Latest News:Site: Yahoo! News Search Results for news Futures flat; Lehman buyout news, data awaited (Reuters via Yahoo! News) Stock index futures were little changed on Friday as investors awaited news on the fate of Lehman Brothers after a slide in its stock this week heightened fears over whether the investment bank can survive. Myanmar's Suu Kyi to get family letters, news mags (Reuters via Yahoo! News) Detained Myanmar opposition leader Aung San Suu Kyi has managed to wring small concessions from the ruling generals in the form of letters from her family and some international news magazines, her lawyer said on Friday. SEC Looks Into UAL Stock Scare; Implications For Online News? (CBS News) A ton of digits have been devoted to this in other spots but the SEC's decision to investigate takes it to another level. The backstory: a six-year-old news story about UAL declaring bankruptcy made it into the Tribune-owned Sun-Sentinel 's current news flow, was picked up by a Google (NSDQ: GOOG) News bot and, via a reporter for a newsletter, made it onto Bloomberg News. After a lot of buck ... JCDecaux in talks for News Outdoor Group in Russia (AP via Yahoo! News) French outdoor advertising firm JCDecaux SA said Thursday it is negotiating to buy Russian rival News Outdoor Group from global media company News Corp. News Corp tightens grip on Premiere with new CEO (Reuters via Yahoo! News) Rupert Murdoch tightened his grip on German pay-TV broadcaster Premiere by appointing News Corp executive Mark Williams as CEO in a move to get the company back on track. Phila. mayor to announce grim budget news (The Philadelphia Inquirer) The Nutter administration is expected to announce grim budget news today, which is all but certain to lead to significant spending cuts - perhaps as high as 10 percent - in some city departments, according to three sources familiar with the budget. Help News pick Stadium's greatest moment (New York Daily News) The News is marking the countdown to the final game at The House That Ruth Built by reflecting on Yankee Stadium's greatest moments - and we're asking you - the reader - to help us pick out the best of the best. JCDecaux and News Corp. in talks to combine outdoor ad groups (International Herald Tribune) The News Corp. chief executive, Rupert Murdoch, has recently expressed nervousness about investments in Russia, where News Outdoor generated the bulk of its revenue last year. SEC Looks Into UAL Stock Scare; Implications For Online News? (paidContent.org via Yahoo! Finance) A ton of digits have been devoted to this in other spots but the SEC's decision to investigate takes it to another level. The backstory: a six-year-old news story about UAL declaring bankruptcy made it into the Tribune-owned Sun-Sentinel's current news flow, was picked up by a Google News bot and, via a reporter for a newsletter, made it onto Bloomberg News. JCDecaux in talks to buy News Corp. billboard unit (AP via Yahoo! Finance) In a deal that would create the world's largest outdoor advertising company, French conglomerate JCDecaux SA said Thursday that it is in talks to buy Russian rival News Outdoor Group from global media company News Corp. Site: news - Google News News Analysis A Difficult Road Awaits Panetta at the CIA - New York Times
MORE RESOURCES: Site: Yahoo! News Search Results for insurance NC insurance commissioner orders lower auto rates (AP via Yahoo! Finance) North Carolina State Insurance Commissioner Jim Long on Thursday rejected an industry request for an almost 13 percent increase in auto rates and has ordered a reduction instead. Auto-insurance rates in N.C. ordered cut by 16.1 percent (Winston-Salem Journal) N.C. Insurance Commissioner Jim Long rejected yesterday an industry request for an almost 13 percent increase in auto rates and has ordered a reduction instead. Survey: Insurance Industry Expects Subprime Issues to Negatively Impact 2009 Performance (Insurance Journal) Insurance executives expect subprime and other credit issues to continue to have a significantly negative impact on the industry's financial performance in 2009, and they see credit and pricing risks Nevada Names Baker Acting Insurance Commissioner (Insurance Journal) The Nevada Department of Business & Industry named Betty C. Baker acting commissioner of the Division of Insurance. Baker will oversee the Division while a replacement is sought for Alice Molasky-Arma Here's the lowdown on 'private' bank and broker insurance (USA Today) Q: I've noticed several banks and brokerage firms claiming they have private insurance that protects accounts above the FDIC and SIPC limits. Should investors trust those promises? State unemployment insurance claims up (Macon Telegraph) The Georgia Department of Labor announced Thursday that 59,090 laid-off workers filed first-time claims for unemployment insurance benefits in August, an increase of 72.1 percent from August 2007, but a slight decrease from July to August this year. Fitch Ratings Gives Island Insurance an "Aq" (Insurance Journal) Island Insurance Co. Ltd., Hawaii's largest locally owned and managed property and casualty insurance carrier, has reaffirmed its "Aq" rating for Quantitative Insurer Financial Strength (Q-IFS) by Fit Looking for Free or Low-cost Health Insurance? (Carteret County News-Times) (ARA) - It's no secret that accessing health care is a challenge for the 47 million Americans who are uninsured. Lack of health insurance forces many Americans to choose the health care they receive based on what they can afford, not what they actually need. Uganda: Health Insurance May Face NSSF Fate (AllAfrica.com) The government has finally resolved that all salaried workers and employers, will with effect from July 2009, be required to make compulsory contributions to the new National Social Health Insurance Scheme. The net inflow from life insurance companies into equity stood at Rs550bn till March 31, 2008 , foreign institutional ... (India Infoline) The life insurance industry was the largest investor in the Indian equity markets, ahead of foreign institutional investors and mutual funds, according to the reports. Site: insurance - Google News Obama Plan for Government Insurance Draws Criticism - Bloomberg
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