| Home | About Us | Contact | Privacy Policy | Sitemap | Articles | Save This Site |
|
Purchasing whole life insurance can be complicated, given the numerous options available. In order to help you understand more about whole life insurance, we’re going to provide you with some of the more common terms associated with it.
Agent: A person or organization permitted to sell life insurance on behalf of an insurance company. Beneficiary: An individual who is entitled to receive the face value payout of an insurance policy after the death of the insured. Binder: A temporary agreement that covers you while your insurance policy is being underwritten. Broker: A license individual or organization that can help you find insurance coverage. Cancellation: When your insurance coverage is terminated before your policy expires. Claim: A notice received by an insurance company that indicates that a loss may require coverage under the terms of an insurance policy. Claimant: A party such as the insurer or an insurance company that files a claim. Decline: The refusal of an insurance provider to offer you insurance coverage. Endorsement or Rider: The revision of an insurance policy in order to add or delete coverage to an existing policy. Exclusion: Any notations such as specific causes or conditions that are listed in an insurance policy, but not covered. Face Amount: The specific amount of money paid to a beneficiary after the death of the insured. Guaranteed Insurability: A policy holder’s option to buy additional life insurance in the future without the need to prove they are eligible for insurance. Insured: An individual or policy holder that is protected by an insurance policy. Insurer: An insurance company that provides insurance coverage. Limit: The maximum amount of money a whole life insurance policy will pay out. Policy: A written insurance contract between the insurer and the insured. Premium: The amount paid by the insured to an insurance company to maintain insurance coverage. Quote: The expected cost of insurance based on information provided to an insurance company. Quotes for any type of insurance, including whole life insurance, can be obtained at no charge. Rider: See Endorsement Surrender: When the insured cancels a life insurance policy before it matures. Underwriting: The specific process of determining which individuals are eligible for insurance coverage and then classifying them according to their degree of insurability to determine their premium rates. This process can also deny individuals who pose an unacceptable risk. Waiting Period: The specific time period indicated in an insurance policy before insurance coverage will begin. Whole life insurance: This type of insurance, also known as ordinary life insurance protects the insured for their entire lifetime and is guaranteed to pay out a minimum amount. |
|
|
