Common Life Insurance Terms

Perhaps you have ever found yourself totally uncertain of a certain life insurance term? Most likely not alone, we all have at one time or another. Well, this is the quick guide in understanding lots of the common life insurance terms. insurance terms and definitions

Accelerated Benefits

This kind of insurance term is a provision in a life insurance policy allows someone identified as having a terminal disease to obtain part of their death benefit early. That can also apply to somebody who is once and for all restricted to surviving in a nursing home. 

Convertible Term Life Insurance

A transformable term life policy allows you to convert to an unique type of life insurance policy, such as whole life, without having to medically qualify.

Lowering Term Life Insurance

A decreasing term life coverage decreases with an established amount each year throughout the policy period.

Resistant of Insurability

The medical information about you that a life insurance company uses to determine if you are qualified for life insurance. This can have other information about you such as financial and credit information.

Deal with Amount

This is the total amount of life insurance that is to be paid after the death of the insured to the inheritor.

Grace Period

This insurance term describes the time frame after the deadline for the premium on the policy that it can be paid without fees. The standard grace period is 30 days, but each company may have different conditions.

Guaranteed Insurability

This is a life insurance coverage option that allows the covered by insurance policyholder to buy additional amounts of life insurance in the future and never have to medically qualify.

Insured

This can be a person who is protected by living insurance plan

Lapse

The insurance term that describes the discontinuance of the life insurance policy from not paying the required premium.

Level Term Life Insurance

This kind of is a set amount of term life insurance that remains frequent through the life span of the coverage.

Loan Value

The total amount that can be borrowed against the life insurance policy.

Mortality Desk

A table showing the statistical death rate for each and every age.

Paid Up Insurance

This life insurance term indicates a policy that is completely paid back with no further premiums thanks.

Premium

The cost for the life span insurance policy. This kind of may be on a monthly, quarterly, semi-annual, or yearly basis.

Rated Up Plan

A life insurance policy that is released with a higher than normal premium due to the increased risk engaged from the insureds health, hobbies, or employment category.