Insurance vocabulary
Optional Riders
Misc Insurance terms
Types of Life insurance
Term Life
100
a person who receives the death benefits of a life insurance policy after the insured’s death.
What is beneficiary
100

A Rider on a life insurance contract that waives premium payments if you become disabled.

Waiver of Premium for Disability

100
A contract between the insured and the insurer under which the insurer agrees to reimburse the insured for any losses suffered according to specified terms.
What is insurance policy
100
Life insurance designed to offer ongoing insurance coverage over the course of an insured’s entire life.
What is Whole Life
100
Insurance that provides only death benefits, for a specified period, and does not provide for the accumulation of cash value.
What is Term Life.
200
The choice to accept and bear the risk of loss.
What is risk assumption
200

Adds an additional amount of Term Life insurance on for a lesser amount for 10, 20, or 30 years.

Select Term Rifer

200
Permanent cash-value insurance that combines term insurance (death benefits) with a taxsheltered savings/ investment account that pays interest, usually at competitive money market rates.
What is Universal Life.
200

Lengths of Term Policies

10, 20, 30

300
The accumulated refundable value of an insurance policy; results from the investment earnings on paid-in insurance premiums.
What is cash value
300

An option in a life insurance contract giving the policyholder the right to purchase additional coverage at stipulated intervals without providing evidence of insurability.

What is Guaranteed Insurability Option

300

The financial, legal, and emotional interest a person has in a life insurance policyholder.

Insurable Interest

300

A policy that is paid off completely in 20 years, but has potential to continue to grow in cash value.

20 Pay Life

300

The main 5 things that affect your premium

Age, Health, Gender, Lifestyle and Habits, Amount and Length of Coverage. 

400
Avoiding an act that would create a risk.
What is risk avoidance
400
A method of determining the amount of life insurance coverage needed by multiplying gross annual earnings by some selected number.
What is multiple-of-earnings method
400
An advance, secured by the cash value of a whole life insurance policy, made by an insurer to the policyholder.
What is policy loan
400
Life insurance that provides a master policy for a group; each eligible group member receives a certificate of insurance.
What is group life.
400
A term life policy provision allowing the insured to renew the policy at the end of its term without having to show evidence of insurability.
What is renewability
500
The process used by insurers to decide who can be insured and to determine applicable rates that will be charged for premiums.
What is underwriting?
500

Rider that covers your children under your Life Policy

Children's Term Rider

500

Life Insurance Policy that provides a pay out if you out- live your policy.

Return of Premium

500
A term life policy provision allowing the insured to convert the policy to a comparable whole life policy.
What is convertability
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