Once that period or term is up, it is up to the policy owner to decide whether to renew or to let the coverage end. The insurance handbook reflects this diversity of subjects and issues. Whole life insurance whole life insurance is also know as ordinary, standard or permanent life insurance. In the life insurance world, there are a lot of big words and complicated terms. Proof that a person is an acceptable risk to the insurance company. Policies issued at a higher rate than standard due to impairment of the insured. Life insurance is a protection against financial loss that would result from the premature death of an insured. Browse our life insurance glossary of common terms intelliquote. Life insurance terms glossary american family insurance. Life insurance terms glossary life insurance definitions when it comes to protecting what matters most, life insurance is an easy and proactive way to ensure youre financially taking care of your loved ones. Amount stated in a policy contract as payable upon the death of the person whose life is being insured. Life insurance terminology doesnt have to be confusing.
Life insurance glossary of common terms we recognize you are looking to make the best decisions for you and your family by comparing online insurance quotes. Agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer. Age is typically the most important factor in calculating your premium rate. Annuity retirement option or life annuity glossary of terms please click on the term to view its meaning. Term life insurance provides coverage for a specific period of time, while permanent life insurance provides coverage for the insured persons entire life. Generalinsurancedefinitions institute and faculty of. Answers to health questions on the policy application. This guide describes some common types of life insurance available in todays market and provides a glossary of some general insurance terms to help you understand them better. Whole life insurance policies also provide taxdeferred buildup of cash value, payable upon surrender or payment default. Life insurance terminology and definitions glossary of 20. Insurance terminology north american training group.
When reading the definitions, please keep in mind that this glossary is provided as a guide only curated from various sources. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells policies for one company only. Different types of insurance oklahoma state department of. Weve compiled this life insurance glossary with some of the most common terms you might come across on a life insurance website, reading through paperwork or speaking with an agent. A type of life insurance with a limited coverage period. Your attained age is a factors life insurance companies use to determine premiums. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. This page provides a glossary of insurance terms and definitions that are. If you have any questions about the use or meaning of a term or expression in any particular product or literature, you should raise them with the provider concerned. Glossary of life insurance terms department of financial. In a wider context casualty insurance may cover all non life insurances. Glossary of life insurance terms department of financial services. Aug 01, 2016 but once you learn that language, youll see that life insurance is a remarkably flexible financial instrument.
A verification of the financial records, usually payroll or receipts, of an. Print and pdf formats, and quantity discounts are available. The printed legal document stating the terms of insurance contract that is issued to the policyowner by the company. Insurance in which the risk insured against is the death of a particular person known as the insured, upon whose death within a stated term for term insurance, or whenever death occurs for permanent insurance, the insurance company agrees to pay a stated sum or income to the beneficiary. Life insurance terminology and definitions insurance. These general definitions are provided for educational purposes. Learn vocabulary, terms, and more with flashcards, games, and other study tools. This type of insurance is characterized by its defined time period that is. Nov 08, 2012 when shopping for life insurance you may come across some terms that you are unfamiliar with. Different types of insurance jermaine to make his him to city hospital, but lesson objectives examine the different types of insurance available. Like any industry, the life insurance industry has its own unique terms. The amount actually paid on a life insurance policy at death or when the policyowner receives payment at surrender or maturity.
If youre feeling baffled by all the new terminology, read through our glossary of life insurance terms and get some. Term life insurance covers a specified period of time, anywhere from a year to the time you reach age 65 or 70, depending on the contract. Glossary of health coverage and medical terms page 1 of 4 glossary of health coverage and medical terms this glossary has many commonly used terms, but isnt a full list. This is the english version of the original publication, which was published originally in hungarian. Our glossary of the most common terms, phrases, and concepts will help you brush up on life insurance definitions in. Therefore, we are providing this glossary of life insurance terms. Traditional life insurance has a more than 100 year past of settled, refined format and. Insurance pdf types of insurance, scope of insurance,classification hello friends welcome to. The words in italics are defined and explained in section 2 definitions. Glossary of life insurance terms arizona department of. It has been aptly said that life insurance offers the safest and surest means of. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. Sun life financial guide to critical illness definitions sun critical illness insurance policies sold after october 2, 2017 sun critical illness insurance sun cii offers financial help to pay the costs associated with life altering illnesses. An agent can be independent agent who represents at least two insurance companies or a direct writer who.
Both types pay what is known as a death benefit, which is the amount of money paid out upon the insureds death. All documents, including the claim form that we will provide and the. Glossary of health coverage and medical terms this glossary has many commonly used terms, but isnt a full list. The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. He did not mean to hit the identify key terms associated with insurance and risks. We feel it is important for you to be informed about the rates available to you in order to make intelligent decisions about your coverage. Pdf this chapter examines the characteristics of insurance contracts. Insurance is a very important topic mba, bcom,mcom and other finance related degrees. If an accident occurs that causes the death of the insured, this is the benefit that is paid to the beneficiary. The named beneficiary receives the proceeds and is thereby safeguarded from the. Get life insurance terms and definitions with help from the founder of wealth financial partners and a. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and. Life insurance resource center glossary of life insurance terms.
The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. Not sure where to start when it comes to learning about and shopping for life insurance. To make an informed and hasslefree decision when you purchase your next life insurance policy, make sure to read through this glossary of life insurance definitions to better understand what the various terms mean. Pdf, and instead will open in a program other than a pdf reader. A glossary section contains over 500 entries, including over 100 life insurance definitions provided by. Different types of life insurance policies goodfinancialcents. Apr 02, 2019 life insurance is a protection against financial loss that would result from the premature death of an insured. Insurance pdf types of insurance, scope of insurance. Glossary of common insurance terms state of alabama. Most people wanting to convert a pdf file to some other format are interested in doing that so they can edit the contents of the pdf. The book begins with basic information on the various types of insurance, including auto, home, life, annuities and longterm care. This glossary is intended as a general aid to help you understand some of the commonly occurring phrases and jargon used in the insurance world. Today, there is a wide variety of life insurance policies available, the most basic of which are term and permanent. Before you sign your name and make your first payment, though, you want to be sure you understand what youre getting.
Refers to the financial strength of an insurance company. Term life america insurance we wants you to understand our language so you can make the best choice for your family. Here are definitions of the most common terms and phrases youll find in a policy. Coverage to pay for damage to or loss of an insured. Browse our life insurance glossary of common terms. Feel like understanding the various jargon and terms used by life insurance providers is like learning a new language. Jul 07, 2014 life insurance terminology and definitions check out the meanings of commonly used terms in life insurance for a better understanding. Nov 18, 2010 life insurance terminology and definitions insurance dictionary. Illustrated scale means a scale of nonguaranteed elements currently being. Commissioners develops model rules and regulations for the industry, many of which must be. Life insurance definitions guide looking to purchase life insurance. Agent the insurance company representative who sells policies on behalf of the insurer. Unlike term insurance, whole life insurance provides insurance coverage for the lifetime of the insured.
Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values. Consumer glossary national association of insurance. An option that potentially allows for a terminally ill person to receive their death payment while still alive. Insurance handbook insurance information institute. Am best, standard and poors, and moodys are three wellknown rating services. Converting a pdf means that it will no longer be a. If you have personal property replacement cost coverage, your insurance will pay the full cost to repair an item or buy a new one. An independent agent represents more than one company. Life insurance glossary complete list of life insurance. Jun 02, 2016 a general rule of thumb with life insurance 101 is that the younger and healthier you are, the less you will pay. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. Accidental death benefits if a life insurance policy includes an accidental death benefit.
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