Life Insurance Terms
Have you ever found yourself totally confused about a certain life insurance term? You have got company. You are not alone with this. Well, here is a quick guide in understanding many of the common life insurance terms.
Accelerated Benefits
This insurance term is a provision in a life insurance policy allows someone diagnosed with a terminal illness to receive part of their death benefit early. It can also apply to someone who is permanently restricted to living in a nursing home.
Convertible Term Life Insurance
A convertible term life insurance policy allows you to convert to a different type of life insurance policy, such as whole life, without having to medically qualify.
Decreasing Term Life Insurance
A definition of decreasing term life policy lessens by an estimated amount every year for the range of the law period.
Evidence Of Insurability
Your medical details will be submitted or studied by the life insurance agents, to let them decide whether you do have the qualifications for the life insurance coverage. This can also include other information about you such as financial and credit information.
Face Amount
The insurance will be paid upon the demise of the insured to the beneficiary.
Grace Period
This insurance term describes the period of time after the due date for the premium on the policy that it can be paid without penalty. Thirty days will be the normal grace period that is applicable to all, nevertheless, each company have their consequences or conditions.
Guaranteed Insurability
This is one choice when you purchase for a life insurance, it permits the insured law holder to purchase more amounts of life insurance in the coming years without even having to qualify medically.
Insured
This means an individual who benefits from the life insurance policy coverage.
Lapse
This is the term of insurance that depicts the impediment of the life insurance policy from not paying the premium required right on time.
Level Term Life Insurance
This is a fixed amount of term life insurance that remains constant throughout the life of the policy.
Loan Value
The entire amount that can be lend in opposition to the life insurance policy.
Mortality Table
The word describes the table that allows people to view the death rate from people at each level or age.
Paid Up Insurance
This term in the world of life insurance means that it is now completely salaried with no other payments due.
Premium
The word describes the amount it will cost you for purchasing the life insurance policy. This may be on a every month, quarterly, semi-annual or yearly basis.
Rated Up Policy
This life insurance policy is known to have bigger than typical premium, because of the problems that may occur to the health, hobbies or employment activities of the insured.
Reinstatement
Restoring a life insurance policy that was previously lapsed.
Settlement Option
The options given to the beneficiary in deciding how they wish to have the policy benefits paid out.
Surrender
This word is utilized when someone submits themselves and postponed their policy for the cash.
Term Life Insurance
A life insurance law that offers coverage for a specific period of time.
Waiver Of Premium
A policy provision that provides a waiver of future premium payments due to the disability of the insured.
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