Insurance Vocabulary
Provides for the payment of an additional amount in the event of the insured's death as a result of accidental bodily injury.
What is Accidental Death Benefit?
Provide permanent life insurance and typically offer fixed premiums, fixed death benefits and a cash value savings component.
What is Whole Life?
Provides a payment of an amount of money in addition to the basic death benefit on a policy if the insured dies as the result of an accident.
What is Accidental Death Benefit?
A policy loan authorized in advance by the policy owner to be used only to pay a premium which remains unpaid at the end of a grace period.
What is Reduce Paid Up Insurance?
A permanent life insurance policy that has reached the end of its coverage period, with the insured still living. The value of the policy minus any loans is paid to the policy owner.
What is Maturity?
The accumulated refundable value of an insurance policy; results from the investment earnings on paid-in insurance premiums.
What is Cash Value?
Permanent cash-value insurance that combines term insurance (death benefits) that pays interest, usually at competitive money market rates.
What is Universal Life?
Allows a policy owner-insured to receive a portion of the policy's death benefit while they are still alive if they are suffering from a terminal illness, with death anticipated within twelve months.
What is Accelerated Death Benefit?
A person's previously terminated policy can resume if the already insured meets the specific requirements.
What is Reinstatement?
An advance, secured by the cash value of a whole life insurance policy, made by an insurer to the policyholder.
What is Policy Loan?
When the insured dies, the _____ is the person or entity designated to receive the death benefit contained in the policy. While the insured is alive the ______ has no rights under the policy unless it is specified in the policy itself.
What is Beneficiary?
A benefit that allows Smokers to receive an Eagle Premier Smoker policy with Nonsmoker rates for the first three policy years. Prior to the third policy anniversary, if you can provide evidence that you have quit using nicotine for at least 12 months, your Death Benefit and premium will remain Level.
What is Quit Smoking Advantage?
Pays a death benefit if the ____ or ____ dies. The rider is usually sold in units of $5,000.00 for ____ and $1,000.00 for _____. The rider covers all ______, no matter hw many. Coverage on ____ expires at a certain age.
What is a Spouse / Child Rider?
The length of time between the date a premium payment is due and the date the policy will lapse if premium is not paid.
What is Grace Period?
The legal pledging of a policy's value to repay outstanding debt.
What is Collateral Assignment?
A benefit under which the net cash value of the policy is used to purchase term insurance for a short period of time - coverage amount remains the same.
What is Extended Term?
A term insurance policy that maintains a level premium throughout all periods of coverage while the amount of protection decreases.
What is Decreasing Term Life Insurance?
The various ways in which a policy owner may apply the cash value of a life insurance policy to continue without continuing premium payments.
What is Non-Forfeiture Options?
A vendor that utilizes the EWS database to help companies protect against payment and identity fraud.
What is GIACT?
A form of risk management where life insurance companies use the premiums paid by a very large number of people to pay the claims of a relatively small number of people.
What is Risk Pooling?
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?
A product that offers a permanent policy, but at the cost of a term product. Initial Level Death Benefit Period (15, 20, 25, or 30). At the end of that period, the death benefit will decrease to an amount equal to 10% or 25% of the initial level death benefit, and will remain level for the life of the policy. Premiums are guaranteed to remain level for as long as the policy is in force.
What is Continuation?
Coverage that has a minimum death benefit amount, which can't exceed the base face amount of the primary insured.
What is Additional Insured Rider?
On this screen you with find the No Lapse Guarantee information for a Vantage policy.
What is PT Screen?
Agent is licensed and contracted to do business -> Agent meets with proposed insured -> New business submits policy -> Underwriting Evaluates Risk -> Commissions pay agents -> Policy owner pays premium -> Customer service assists policy owner -> Claims pays death benefits.
What is The Life Cycle of Insurance?