accelerated death benefits clause -- a policy clause that allows the policyholder to use death benefits before death.
beneficiary -- the person (or persons) named in a life insurance policy to receive the face value if the insured dies.
cash value -- the amount of money accumulated by
a life insurance policy accumulates as the policy matures and available
to be borrowed while the policy is in force or paid to the
policyholder when the policy is cancelled.
convertible clause -- a policy clause that gives the policyholder the right to convert term insurance to whole life insurance.
decreasing term -- term insurance in which the
face value decreases on a specified schedule. This type of policy is often
used for insuring home mortgages.
disability waiver clause -- a policy clause that waives premiums if the
policyholder becomes permanently disabled or unable to work.
dividend-- the money paid back to the policyholder at the end of a year
if an insurance company has collected more premiums than necessary to meet
its expenses ,death benefits, and reserve build-up.
estate planning -- the process of planning to protect wealth from taxes
and other costs and to distribute assets and income after death.
face value -- the amount of money that a life insurance policy pays if the
insured dies.
guaranteed insurability clause -- a policy clause that allows the policyholder
to purchase stated amounts of additional life insurance at specified times
without passing a physical exam.
mortality table -- a mathematical table indicating the average length of
life for a group of persons at any particular age.
nonparticipating life insurance -- coverage that is calculated as closely
as possible to actual cost so that no dividends are paid to policyholders.
participating life insurance -- coverage that pays dividends to policyholders.
policy loan -- a loan made to a policyholder for part of the policy's cash
value.
premium -- the amount of money paid by the policyholder at regular intervals
to keep the policy in force.
proceeds -- the money the beneficiary receives upon filing a claim after
the death of the policyholder.
renewable clause -- a policy clause that allows the policyholder to renew
coverage foranother period without a medical examination.
rider -- a clause that, when added to the policy, expands or restricts its
benefits or excludes certain conditions from coverage.
term insurance -- a policy that pays death benefits to survivors but doesn't
accumulate a cash value.
universal life insurance -- a flexible policy that lets the policyholder
vary the premium payments and the face value of the policy.
variable life insurance -- a policy in which the death benefits and cash
value depend on the investment performance of one or more separate accounts.
whole life insurance -- a policy that builds a cash value and gives protection
through the policyholder's lifetime as long as premiums are paid.