ACCIDENTAL DEATH BENEFIT - A benefit in addition to the face amount of a Life Insurance Policy, payable if the Insured dies as the result of an accident. Sometimes referred to as double indemnity.
ADJUSTABLE LIFE INSURANCE - A type of insurance that allows the policyholder to change the plan of insurance, raise or lower the face amount of the policy, increase or decrease the premium and lengthen or shorten the protection period.
ANNUITANT - The person during whose life an annuity is payable, usually the person to receive the annuity.
BENEFICIARY – The person or party named by the owner of a life insurance policy to receive the policy benefit.
CASH VALUE – The savings element of a permanent life insurance policy, which represents the policy owner’s interest in the policy.
CONVERTIBLE TERM INSURANCE POLICY – A term life insurance policy that gives the policy owner the right to convert the policy to a permanent plan of insurance.
DEFERRED ANNUITY - An annuity in which you begin to receive income payments many years later.
DISABILITY BENEFIT - A feature added to some life insurance policies providing for waiver of premium, and sometimes payment of monthly income, if the policy holder becomes totally and permanently disabled.
EQUITY-INDEXED ANNUITY - A variation of a fixed annuity in which the interest rate is based on an outside index, such as a stock market index. The annuity pays a base return, but it may be higher if the index increases.
FACE AMOUNT – The amount of the death benefit payable under a life insurance policy.
FIXED ANNUITY - An annuity in which your money, less any applicable charges, earns interest at rates set by the insurance company or in a way specified in the annuity contract.
FRATERNAL LIFE INSURANCE - Life Insurance provided by fraternal orders or societies to their members.
GROUP LIFE INSURANCE - Life Insurance usually without medical examination, on a group of people under a master policy. It is typically issued to an employer for the benefit of employees or to members of an association.
IMMEDIATE ANNUITY - An annuity in which you begin to receive income payments no later than one year after you pay the premium.
LIFE SETTLEMENT - Payment of a portion of the proceeds from Life Insurance to an Insured who is terminally ill.
MULTIPLE PREMIUM ANNUITY - An annuity in which you pay the insurance company multiple premium payments.
RETAINED ASSET ACCOUNT – A retained asset account (RAA) is payout option for a death benefit that is not a single large lump sum payment, but a temporary repository of funds in the form of a “checkbook” or drafts that give the beneficiary time to consider financial options available.
TERM INSURANCE - Life Insurance payable to a beneficiary only when an Insured dies within a specified period.
UNIVERSAL LIFE INSURANCE - A flexible premium Life Insurance Policy under which the policyholder may change the death benefit from time to time.
VARIABLE ANNUITY - An annuity in which the insurance company invests your money, less any applicable charges, into a separate account based upon the risk you want to take. The money can be invested in stocks, bonds or other investments. If the fund does not do well, you may lose some or all of your investment.
VARIABLE LIFE INSURANCE - Life Insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid.
WHOLE LIFE INSURANCE - Life Insurance payable to a beneficiary at the death of the Insured whenever that occurs.