Term
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Definition
This is money payable upon the death of the insured. This death
benefit creates an immediate estate, payable to the beneficiaries upon the insured’s death. It could also be called the policy “face amount.” A death benefit is found in all life insurance policies.
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Definition
Example:
A life insurance policy with a face amount of $100,000, insuring John’s life, will pay a $100,000 death benefit when John (the insured) dies. Before his wife, Mary, started paying $20 monthly premiums for the policy, John was pretty worthless; now he has an estate worth $100,000 if he dies prematurely.
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Definition
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Not all life insurance policies include these benefits.
Disability benefits Policy dividendsCash valueEndowment |
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Term
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Definition
This is the person who owns the policy, controls decisions to be made about the policy and may claim the living benefits while the insured is alive.
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Term
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Definition
This is the person whose life is the basis for the policy. The insured could be, and in most cases is, also the policyowner.
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Term
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Definition
| This is the person to whom the death benefit is payable after the insured dies if the insured dies during the policy term. |
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Term
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Definition
| This is the insurance company that agrees to provide the policy's living benefits and to pay the death benefit if the insured dies within the policy period. |
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Term
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Definition
Involves a financial or emotional loss that would result from the death of the insured. In legal terms, it represents a lawful and substantial economic interest in, or family or emotional relationship with, the insured.
Between related individuals, the insurable interest would be love and affection. Between unrelated individuals, it could be based on the financial loss that may be suffered by a creditor when a debtor dies, by one partner when the other dies, or by an employer when a key employee dies.
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Term
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Definition
Provides for payment of the full face amount of the policy at the end of the policy term (at maturity) or at the end of the insured’s lifetime.
This is the insurance a person buys if he wants to build up taxdeferred retirement savings and ensure his beneficiaries will be taken care of regardless of when he dies (even if he is very old when he dies).
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Term
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Definition
The amount promised to be paid at the maturity of the policy.
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Term
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Definition
Provides for payment of the face amount of the policy only if the insured dies within a certain term or period of time. This is the insurance a person buys to get the most insurance for the money he is willing to spend, to cover the needs of his beneficiaries when the loss of his life might affect them most financially (e.g., while the children are growing and/or while they have large debts to repay).
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Term
Annuity Table
Mortality Table
Morbidity Table
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Definition
Life expectancy at any age
Probability of death at any age
Probability of disability at any age |
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Term
WHOLE LIFE
(other names)
Straight Life
Ordinary Life
Level Premium Whole Life
Continuous Premium Whole Life |
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Definition
The amount of insurance and the premium charges remain the same until the policy expires at age 100 or the insured dies before reaching the age of 100.
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Term
level-premium payment plan
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Definition
Premiums do not change as the insured gets older.
This is because in the early policy years, the insurance company charges a premium that is more than they need to pay claims and expenses for a person at that younger age.
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Term
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Definition
in the early policy years, the insurance company charges a premium that is more than they need to pay claims and expenses for a person at that younger age. The insurer will hold the excess amounts of those premiums
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