Health
Insurance
Insurance
The amount you generally pay for insurance coverage each month.
What is a premium?
The person or entity designated to receive a life insurance policy's death benefit.
Who is the beneficiary?
This type of annuity generally guarantees a stated or minimum interest rate according to the contract rather than directly participating in stock-market losses.
What is a fixed annuity?
The process an insurance company uses to evaluate an applicant's risk before deciding whether and on what terms to issue coverage.
What is underwriting?
John wants $500,000 of life insurance protection for the next 20 years and is primarily concerned with keeping his initial premium lower than comparable permanent coverage. This type of policy may fit that objective.
What is 20-year term life insurance?
The amount an insured person generally pays for covered services before the insurance plan begins paying according to its terms.
What is a deductible?
This type of life insurance is designed to provide coverage for a specified period, such as 10, 20, or 30 years.
What is term life insurance?
This annuity credits interest based in part on the performance of an external market index, subject to the contract's crediting method and limitations.
What is a fixed indexed annuity?
This is the process of evaluating a client's needs, financial situation, and objectives to determine whether an insurance or annuity product is appropriate.
What is suitability?
Tom owns a traditional IRA and has reached the age when the IRS requires him to begin withdrawing a minimum amount each year.
What is a Required Minimum Distribution (RMD)?
Once a member reaches this amount for covered in-network services during the plan year, the plan generally pays 100% of additional covered in-network costs for the remainder of that year.
What is the out-of-pocket maximum?
Unlike term insurance, this type of life insurance is designed to remain in force for the insured's lifetime and typically includes cash value.
What is Whole life insurance?
This is the period during which an annuity owner may face a charge for withdrawing more than the contract's penalty-free amount.
What is the surrender period?
This is the period after a premium is due during which an insurance policy may remain in force even though the premium has not yet been paid.
What is the grace period?
A retiree is concerned about outliving their assets and wants an annuity feature designed to provide withdrawals for life even if the contract's withdrawal base or account value behaves differently under the contract.
What is a guaranteed lifetime withdrawal benefit/income rider?
This federal law generally allows eligible individuals to temporarily continue employer-sponsored health coverage after certain qualifying events, such as leaving a job.
What is COBRA?
This permanent life insurance product typically offers flexible premiums and an adjustable death benefit, subject to policy requirements.
What is universal life insurance?
This type of annuity is purchased with money that has already been taxed.
What is a non-qualified annuity?
During this period after a life insurance policy is issued, the insurer generally has greater ability to investigate material misrepresentations on the application when a claim occurs.
What is the contestability period?
Mary has a permanent life insurance policy and needs access to money while she's alive. Depending on her policy, she may be able to borrow against this accumulated component.
What is the cash value?
ACA Marketplace financial assistance that lowers an eligible enrollee's monthly health insurance premium and is reconciled based on household income when federal taxes are filed.
What is the Premium Tax Credit (PTC)?
This rider may allow an insured who meets specified conditions, such as a qualifying terminal illness, to access a portion of the death benefit while still living.
What is an accelerated death benefit rider?
This term describes converting an annuity's accumulated value into a series of periodic income payments under the contract.
What is annuitization?
This federal tax-code provision can allow the direct exchange of one qualifying life insurance or annuity contract for another without immediately recognizing taxable gain.
What is a 1035 exchange?
A Medicare beneficiary goes 20 months without creditable Part D drug coverage after becoming eligible. To calculate their late enrollment penalty, Medicare multiplies the number of uncovered months by 1% of this amount, then rounds the result to the nearest $0.10.
What is the National Base Beneficiary Premium (NBBP)?