When referring to life insurance, your term is the length of time your policy will stay in force as long as you continue making the premium payments. Life insurance glossary terms and definitions from nobleoak. Not sure where to start when it comes to learning about and shopping for life insurance. This is the listed person who owns the life insurance. Seymour alter is a licensed life insurance agent in all 50 states, including the district of columbia, and his resident state is california. Actuary business professional who analyzes probabilities of risk and risk. Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on employmentbased health insurance surveys approved the following set of definitions for use in federal surveys collecting employerbased health insurance data. The agent may be independent and thereby representative for a variety of insurance companies, or they may be a direct. Accident enforceable and unexpected unfortunate event that may cause destruction of property, bodily injury, or death. In this life insurance glossary, we have defined many of these terms used throughout this website and, perhaps in your policy.
Learn insurance industry vocabulary that will help you better understand your insurance policies. See how easy it is to shop online for life insurance. Life insurance glossary insurance compare insurance. If youre feeling baffled by all the new terminology, read through our glossary of life insurance terms and get some. Plan for the future with colonial lifes term life insurance. Life insurance terms and definitions top 44 terms to know. Agent the insurance company representative who sells policies on behalf of the insurer. In this episode, rienzie and fitz defines and discusses the different terms and phrases that youll encounter when youre learning about life insurance. No information given herein replaces or overrides the terms and conditions of an insurance policy. If your policy is an non investmentlinked single payment life insurance plan, you. Life insurance a term policy in life insurance is a contract. Term insurance life insurance payable only if death of insured occurs within a specified time, such as 5 or 10 years, or before a specified age.
Consumer glossary national association of insurance. Glosary of life insurance terms spectrum direct insurance. Beneficiary the person or persons eligible to receive the life insurance proceeds upon the death of the insured. Your products term is outlined in the product disclosure statement. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan or health insurance policy. We intend to add more definitions as we find more terms that might useful to our users and insurance consumers. Term length could also be called duration of coverage, length of coverage, policy term term is a guaranteed length of time.
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. Accidentonly policies policies that pay only in cases arising from an accident or injury. Before you sign your name and make your first payment, though, you want to be sure you understand what youre getting. Insurance companies and companyowned agencies typically specialize in one or the other, though individual brokers and brokerages have the option of dealing in multiple types of coverage. Our glossary of the most common terms, phrases, and concepts will help you brush up on life insurance definitions in no time.
The coverage that is issued by a life insurance company. Life policies are legal contracts and the terms of the contract describe the limitations of the. Term life insurance has a guaranteed level premium that expires in a set number of years and provides a death benefit for your dependents when you pass away. Life insurance designed to cover the insured for a specified period of time or term. Nonlife insurance is a broad category, including on both people and things.
Life insurance terms glossary and facts from netquote. Glossary of insurance terms 1life 1life life insurance. Insurance terms and glossary learn some most used terms. Its better to know some insurance terms before asking for a quotes.
Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and. Going along with our mission, we have compiled a list of life insurance terms and definitions containing some of the most used words within this industry to help you increase your vocabulary, and your knowledge as a resu lt. Life insurance glossary h spectrum direct insurance. Benefits available in some life insurance policies before death, usually triggered by longterm, catastrophic or terminal illness. Life insurance glossary of terms compare the market. Canadian glossary of insurance terms first foundation. A company owned solely or in large part by one or more non insurance entities for the primary purpose of providing insurance. The amount actually paid on a life insurance policy at death or when the policyowner receives payment at surrender or maturity. Indexed life insurance a whole life plan of insurance that provides for the face amount of the policy and, correspondingly, the premium rate, to automatically increase every year based on an increase in the consumer price index cpi or another index as defined in the policy.
In the early years after a block is opened, claims are generally low. General insurance insurance of nonlife risks where the policy offers cover for a limited period, usually one year. Term policies provide life insurance protection without any cash value features which can increase the cost of the coverage. Glossary of health insurance terms december 12, 2008 a active life reserves funds held by an insurer to pay future claims incurred by individuals covered by a nongroup policy. Life insurance resource center glossary of life insurance terms. Third party person other than the insured or insurer who has incurred losses or is entitled to receive payment due to acts or omissions of the insured. Decreasing term a term life policy in which the death benefit goes down. Please approach a duly licensed agent or a broker or an. The insurance contracts act allows an insurer to avoid. 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.
This document is for informational purposes only and is not intended to alter or replace the insurance policy. Life insurance is a contract between an insurance policy holder and an insurer or assurer. Like any form of insurance, it may seem like people are speaking a different language when talking about life insurance. Get up to speed with this helpful glossary of important life insurance terms. If you have any questions about the use or meaning of a term or expression in any particular product or literature, you. The life insurance benefit that pays out the full life cover amount to the life assured, while they are still alive and in the event of their doctors and the insurers chief medical officers cmo diagnosis that the life assured suffers a terminal illness with a life expectancy over a certain time frame, as defined by the life insurer. 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 health coverage and medical terms this glossary defines many commonly used terms, butisnt a full list.
Two such glossaries are of particular use to visitors and customers of insurance canada. A provision added to a life insurance policy for payment of an additional benefit in case of death that results from an accident. The agent may be independent and thereby representative for a variety of insurance companies, or they may be a direct writer, in which case they will represent and sell. Life insurance terms and definitions term life america. Insurance glossary understanding common insurance terms. Life insurance definitions, terms, and common jargon. There is also a comprehensive glossary of insurance and risk management terms available from the international risk management institute. Whole, universal, and variable life insurance each has their own provisions, but all cover you for the remainder of your life. Term insurance generally offers the most protection for your.
Life insurance provides a payout of a specific dollar amount to a beneficiary at time of death. They are responsible for the ongoing payment of premiums and will be the recipient of any benefits paid under the contract in the event of a claim. Insurance terminology north american training group. Aia life insurance holding company subsidiary of aig that focuses on nonu. An independent agent represents more than one company. Browse our life insurance glossary of common terms. Glossary of life insurance terms whether you are an experienced buyer of insurance or looking for a policy for the first time, understanding the different terminology can be quite challenging. One onehundredth of a percentage point, used to express the. March 3, 2020 toronto at the kickoff to fraud prevention month, insurance bureau of canada ibc advised the public to watch out for insurance fraud scams. Texas department of insurance glossary of common insurance terms.
Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage. For example, you can get a 17year term life insurance policy to protect your loved ones until your mortgage is paid off. Browse our life insurance glossary of common terms intelliquote. Also see the property and casualty insurance glossary, small business insurance glossary and terminologies used in insurance and their meanings. Liability insurance is a type of insurance that protects the policyholder from losses in the event that they are found at fault andor sued for claims that fall within the coverage of an insurance policy. When youre ready to take the next step, compare quotes for free or talk to a policygenius expert. Also called the coverage amount, face amount or sum insured. Mar 28, 2017 in this episode, rienzie and fitz defines and discusses the different terms and phrases that youll encounter when youre learning about life insurance.
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. 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. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Term used in universal life policies to describe the total of all premiums and earnings credited to the account before deductions for any expenses, loans, and surrenders. One onehundredth of a percentage point, used to express the movement of interest rates or index pricing. This fact sheet defines various insurancerelated terms. The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. The printed legal document stating the terms of insurance contract that is issued to the policyowner by the company. You can find some most used terms here at our insurance terms and glossary. The defined terms and coverage provisions in your policy or certificate of insurance, such as reasonable and customary, may be different from the general information provided below, and the policy or certificate language will prevail. Two such glossaries are of particular use to visitors and customers of insurancecanada.
In life and health this document would be called an actuarial memorandum. Cash value the money that accumulates in your life insurance policy while the policy is in force that the insured can borrow. In the case of life insurance, the beneficiary and the insured would be different people. A life insurance policy that provides a stated benefit upon the holders death, provided that the death occurs within a certain specified time period. This is the contract of life insurance between the life insured and the life insurance company. Glossary of life insurance terms department of financial.
When a person applies for life insurance, the life insurance company generally sends out the applicants medical test results and any other collected medical information that suggests health impairment to the mib. The policy details the terms and conditions of your policy. Jan 23, 2017 going along with our mission, we have compiled a list of life insurance terms and definitions containing some of the most used words within this industry to help you increase your vocabulary, and your knowledge as a resu lt. 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. Understanding your insurance policy can be overwhelming. Use this informative health and life insurance glossary to understand the definitions of many commonly used insurance terms. But it is also possible to get a term life insurance policy tailored to your specific needs. Typically, term life insurance is issued in 5 year increments, such as 10, 15, 20 or 30 years. The employers liability compulsory insurance act 1969 requires all employers, unless they are exempt, to have at least. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. Most life insurance policies continue to provide cover until this term ceases, provided the policy is renewed each year.
Here we follow approximately the classification and definitions proposed by huebner and black 1976. The term of your life insurance is a defined period of time for which the your policy is valid for. Glossary of life insurance terms department of financial services. Insurance terms and glossary learn some most used terms here. Glossary of life insurance terms arizona department of. A company owned solely or in large part by one or more non insurance entities. If, at any time you come across an insurance term in you dont understand, come back to this glossary and look up the definition. This is why claybrooke has assembled a list of the most common terms you will see throughout our website in regard to insurance policies. Some of these terms also might not have exactly the same meaning. Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies.
To help you understand the information included in a life insurance policy, weve gathered some basic terminology in this easytoreference overview. Glossary of aig terms federal reserve bank of new york. As a prospective insurance customer, some terms used by the insurance industry can be confusing. Sep 05, 2018 term length could also be called duration of coverage, length of coverage, policy term term is a guaranteed length of time. Life insurance holding company subsidiary of aig that focuses on nonu. An agent can be independent agent who represents at least two insurance companies or a direct writer who. Term life america insurance we wants you to understand our language so you can make the best choice for your family.
The reserve for each claimant will depend upon such factors as. An organization that serves as a clearinghouse of medical information for the life insurance industry. 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. Therefore, we are providing this glossary of life insurance terms. General liability liability insurance covers the policyholders legal liability for injury, property damage or financial loss caused to others. Terms claim a claim is a bill from your health care provider doctor or hospital. Like any industry, the life insurance industry has its own unique terms. Invitations for application for life insurance on are made through spectrum direct insurance services, inc. Glossary of insurance terms employers liability insurance. Understanding life insurance terms like many industries, the world of insurance has its own unique set of vocabulary to describe its products. The reserve reflects the present value of all future payments to an open long term disability claimant, and is revalued on a regular basis.
This glossary is designed to help you understand some of the more commonly. Glossary of insurance terms the az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. Weve curated a list of life and health insurance terms and their definitions to help you better understand the confusing language of insurance. For disability insurance, the beneficiary may be the same person as the insured. They are responsible for the ongoing payment of premiums and will be the recipient of. Life insurance resource center glossary of life insurance terms 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. Beneficiary the beneficiary of the policy is the person or entity that receives the benefits. A phrase used to cover any form of life insurance except term. Basic insurance terms and definitions, life insurance terms and definitions, basic insurance terminology, insurance glossary pdf, important insurance terms, insurance terms and concepts, health insurance terminology and insurance. The life insurance benefit that pays out the full life cover amount to the life assured, while they are still alive and in the event of their doctors and the insurers chief medical officers cmo diagnosis that the life assured suffers a terminal illness with a life expectancy over.
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