Genderfemales typically get lower rates because of longer life expectancy. Insurance definitions, dictionary, glossary and terms. Benefits are paid only if something happens to you within that specified period, known as a term. Glossary of insurance terms national insurance brokers association. Before you sign your name and make your first payment, though, you want to be sure you understand what youre getting.
This type of insurance costs less than whole life insurance, and so, in general, pays the highest immediate benefit for your premium dollar. In life and health this document would be called an actuarial memorandum. In this life insurance glossary, we have defined many of these terms used throughout this website and, perhaps in your policy. A life insurance policy issued to a group of people, usually through an employer, union or association. The amount covered by the terms of an insurance contract.
Term life insurance is a standard insurance policy that provides coverage for a specific period of time. Glossary of life insurance terms department of financial. 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. 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. 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. The named beneficiary receives the proceeds and is thereby safeguarded from the. This glossary will help you understand the basic types of coverage along with the terms included in your. If, at any time you come across an insurance term in. 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. The terminology used is peculiar to insurance but the. 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 contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non disclosed or fraudulently misrepresented. 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.
Limited payment life insurance a form of whole life insurance with a predefined number of premiums to be paid. Adjustable life insurance age at entry age at maturity age limits annual premium annuity annual premium payment mode. 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. Do you have a spouse or children who you want to provide for in life and in death. Agent the insurance company representative who sells policies on behalf of the insurer. Apr 02, 2019 life insurance is a protection against financial loss that would result from the premature death of an insured.
The agent represents the insurance company in all transactions. Line of business classification of business written by insurers. 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. 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. Amount stated in a policy contract as payable upon the death of the person whose life is being insured. 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. Nov 29, 2018 life insurance and annuity products are not bank products, are not a deposit, are not insured by the fdic, nor any other federal entity, have no bank guarantee and may lose value. 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 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. Columbus life insurance company naic code 99937, cincinnati, ohio, is licensed in the district of columbia and all states except new york.
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. 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. Life insurance for dummies a quick and simple guide. It provides you and your family the financial security and certainty to deal. Event which causes a loss of extraordinary magnitude, such as a hurricane or tornado. Term life insurance provides life insurance coverage for a designated period of time. It is the proposers or life insureds age at the time of filling the proposal form or entering into a contract. The distribution serves to reduce the premium the policyowners had paid. Understanding life insurance terms preferred insurance services. Life insurance policy gives you the protection against financial losses resulting from the insured individuals death.
Glossary of life insurance terms arizona department of. No information given herein replaces or overrides the terms. An adjustment rider to a life insurance policy that. Deductible the amount of money the policyholder must pay on a loss. Third party person other than the insured or insurer who has incurred losses or is entitled to receive payment due to acts or omissions of the insured.
A type of life insurance policy that provides protection for a specified period of time. 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. Life insurance contracts usually stipulate that no payment will be made and the contract will become void if. 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. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. 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. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. Life insurance is a financial safety net for your family. Various rights which may be exercised under the policy contract by the policy owner. Basically term life insurance is good to protect against temporary financial risks like a mortgage, your kids college tuition, etc. 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. 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. 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.
It is the proposers or life insureds age when the policy matures or the contract comes to an end. Answers to health questions on the policy application. Here are definitions of the most common terms and phrases youll find in a policy. 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. 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. Your attained age is a factors life insurance companies use to determine premiums. Sbi life accidental death benefit linked rider, uin. A type of life insurance that is in effect for a set number of years, usually anywhere between five to 30 years. Insurance glossary understanding common insurance terms. 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. Direct loss a loss which is a direct consequence of a peril.
Life assured is the one for whom the life insurance plan is purchased to cover the risk of untimely death. Infiniteam insurance comprehensive risk management. Consumer glossary national association of insurance. A verification of the financial records, usually payroll or receipts, of an. Life insurance is completely different in that it is based on when, and not if occurrence, thus making life insurance products more complex. Gerber life insurance offers adult and childrens life insurance to help you protect your familys future. Glossary of insurance terms you may need to know columbus. 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. Limited policies health insurance coverage for a certain ailment, such as cancer. A person licensed by the state insurance authority to sell insurance products. A type of life insurance with a limited coverage period. Participating policy a life insurance policy under which the company agrees to distribute to policyowners the part of its surplus that its board of directors determines is not needed at the end of the business year. Dec 27, 2019 life insurance terminology doesnt have to be confusing. It may also include disablement and can be offered as an option in connection with credit cards and auto loans.
Glossary of life insurance terminology gerber life insurance. Not sure where to start when it comes to learning about and shopping for life insurance. Insurance concerned with the insiders legal liability for injuries to others or damage to other persons property. The items on a balance sheet showing the value of property owned. Insurance terminology north american training group. Declaration part of the insurance policy that identifies the named insured, policy period and limit of insurance. Also called the coverage amount, face amount or sum insured. Term life insurance is a life insurance product that is called temporary because its meant to protect you for a certain term period. The coverage that is issued by a life insurance company. Browse our life insurance glossary of common terms intelliquote. 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.
An insurance company that accepts the risk transferred from. It comes in forms of 5 year term, 10 year term and all the way up to 30 and sometimes 40 year terms. Age is typically the most important factor in calculating your premium rate. Actuary business professional who analyzes probabilities of risk and risk. 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. 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. 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. Life insurance is a protection against financial loss that would result from the premature death of an insured.
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. Here is some of the basic terminology for life insurance. If you pass away, your life insurance policy will pay a lump sum of money to your beneficiaries. Glossary of life insurance terms department of financial services.
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. Policy the printed legal document stating the terms of insurance contract that is issued to the policyowner by the company. The insurance company evaluates the underwriting risk based on the insureds physical condition and, in some cases, financial condition. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and. 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.
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