Accelerated Death Benefit
An option for proceeds of death benefit to be paid out to you before death in the event of terminal illness and you need extreme medical intervention.
Accidental Death Benefit
An additional benefit paid to the beneficiary of a life insurance policy if the insured dies from an accident instead of natural causes.
A fixed sum payable at specified intervals over the insured’s life time. Can be used to help fund retirement.
The person named by the insured to receive the proceeds or benefits from the life insurance policy.
The money to be paid by an insurance company.
Buy Sell Agreement
A formal agreement between business owners which arranges for the interest of any one of them who dies to be sold to and purchased by the surviving co-owner.
An optional coverage that allows parents to purchase life insurance for their children without having to purchase a separate policy.
Decreasing Term Life Insurance
Term Life Insurance with a face value that slowly decreases in scheduled steps while the premium remains level.
Disability Income Insurance
Replaces a portion of the insured’s income if he or she becomes unable to work due to injury or illness.
A plan to provide for an individual’s dependents and heirs after he or she has died. The goal of an estate plan is to use life insurance to help pass the estate on to the heirs with the least possible loss of value due to taxes.
The amount of money stated on a life insurance policy to be paid out when the insured dies.
Means the policy is currently active.
Key Person Insurance
A life insurance policy a business takes out on an important employee that protects the business from financial loss incase of the death of the employee.
Permanent Life Insurance
Another word for Whole Life Insurance, the policy has a guaranteed value your whole life as long as premium is paid.
A clause in most life insurance policies that states that if the insured commits suicide within a specified period, usually two years from issue, the insurance company’s liability will be limited to the return of premiums paid, and no death benefit.
Super Preferred Risk
A person or business that represents a very low probability of loss or early death.
The fee charged to a policyholder when a life insurance policy is surrendered for it’s cash value.
The time that must pass before benefits are paid.