Life insurance basics
The legal contract between you and the insurer is called this.
What is a policy?
This basic type lasts for a set number of years.
What is term life insurance?
This person receives the payout from the policy.
Who is the beneficiary?
The amount you pay to keep your policy active.
What is a premium?
These optional additions can enhance your policy.
What are riders?
This person owns and controls the policy.
Who is the policyholder?
This type lasts your entire life and builds cash value.
What is whole life insurance?
This person is covered by the policy.
Who is the insured?
This is the tax-free amount paid out when the insured dies.
What is the death benefit?
This rider allows you to skip premiums if disabled.
What is the waiver of premium rider?
This process evaluates your risk before coverage is granted.
What is underwriting?
A flexible, adjustable type of permanent coverage.
What is universal life insurance?
You can name more than one of this person to share the benefit.
What is a contingent beneficiary?
Permanent life insurance can grow this savings-like feature.
What is cash value?
A rider that adds coverage for your children.
What is a child term rider?
This is the minimum age at which someone can typically buy a life insurance policy.
What is 18 years old?
A type of policy provided by your employer.
What is group life insurance?
The person authorized to make decisions on behalf of the policyholder in certain legal cases.
Who is a power of attorney?
You can borrow against this part of a permanent policy.
What is the cash value?
A two-year period when claims may be denied due to misstatements.
What is the contestability period?
The company that issues your life insurance is called this.
What is the insurer or carrier?
This term describes insurance for final expenses, like burial.
What is final expense insurance?
This professional helps you choose and apply for coverage.
Who is an insurance agent or broker?
This benefit can be paid early if the insured is terminally ill.
What is an accelerated death benefit?
A rider that increases the death benefit if death is accidental.
What is an accidental death benefit rider?