A consumers insurance glossary washington state office of the. Many financial experts consider life insurance to be the cornerstone of sound financial planning. 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. A loan issued by the life insurance company that uses the cash value of your life insurance policy as collateral. List of all most popular abbreviated insurance terms defined. Life insurance coverage concerned primarily with the protection of an insured s business or vocation. An independent agent represents more than one company. Typically, term life insurance is issued in 5 year increments, such as 10, 15, 20 or 30 years. Loma glossary in interpreting any particular policy or contract or groups of policies or contracts. As a useful guide to insurance vocabulary, it will help you understand your coverage or benefits plan page. The printed legal document stating the terms of insurance contract that is issued to the policyowner by the company. Under the affordable care act, rescission is illegal except in cases of fraud or intentional misrepresentation of material fact as prohibited by the terms of the plan or. 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. The payment required for an insurance policy to remain in force.
Thank you for choosing to learn more about residential title insurance. Browse and search thousands of insurance abbreviations and acronyms in our comprehensive reference resource. Seymour alter is a licensed life insurance agent in all 50 states, including the district of columbia, and his resident state is california. Permanent life insurance that extends over the whole life of the person. Acquisition costs all expenses directly related to acquiring insurance or reinsurance. National laws are more general for nonlife insurers reserves provisions. Browse our life insurance glossary of common terms.
Amount stated in a policy contract as payable upon the death of the person whose life is being insured. The beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured. Consumer glossary national association of insurance. Whole life life insurance that may be kept in force for a persons entire life and that pays a benefit upon the persons death, whenever that may be. If youre feeling baffled by all the new terminology, read through our glossary of life insurance terms and get some. Insurance handbook insurance information institute. If kept long enough, the premium on this policy will increase faster than the death benefit.
Use this informative health and life insurance glossary to understand the definitions of many commonly used insurance terms. In the early years after a block is opened, claims are generally low. 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. 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. We provide quick answers and easytounderstand auto and homeowners definitions written with you in mind.
This page provides a glossary of insurance terms and definitions that are commonly. Exceptions include certain life insurance policies and health insurance. A supplemental health insurance policy sold by private insurance companies that is designed to pay for health care costs and services that are not paid for by medicare and any private health insurance benefits. As such, the insurer absorbs any such deficit, but also retains any such surplus. If you want to add personal links, please do that on your user page you can also write your profile there. A type of life insurance policy where a trust company is named as the beneficiary and distributes the proceeds of the policy under the terms of the trust agreement. An adjustment rider to a life insurance policy that. Glossary of compensation terms bureau of labor statistics. Refer to this page as you read the information on our website and contact us if you have additional questions. A request for payment due to death under the terms of a life insurance policy or. Life insurance is a protection against financial loss that would result from the premature death of an insured.
The hartford s glossary of terms can help you better understand auto and homeowners insurance terminology as you research the right coverage for you. There are two basic types of term life insurance policieslevel term and decreasing term. Apr 25, 2017 the essential glossary of group benefits terminology written by rise april 25, 2017 every industry has its distinctive jargon and terminology, but few are as unique and languageintensive as group benefits and health insurance. Browse the list of 7 574 insurance abbreviations with their meanings and definitions. In the case of life insurance, the beneficiary and the insured would be different people. Cancellation this is when an insurance company or an insured person voluntarily ends. The death payment may be accelerated for a terminally ill insured in need of medical or living expenses see adb. Life insurance terms glossary american family insurance. Agent the insurance company representative who sells policies on behalf of the insurer.
A term life policy that increases the death benefit each year during the term. A participating policy is a policy that could receive dividends from a life insurance company. Beneficiary the beneficiary of the policy is the person or entity that receives the benefits. Need help with insurance terms and insurance definitions, see the insurance dictionary and glossary. Webmd provides definitions of terms related to health insurance, the affordable care act and medicare. The essential glossary of group benefits terminology written by rise april 25, 2017 every industry has its distinctive jargon and terminology, but few are as unique and languageintensive as group benefits and health insurance. The health insurance company is referred to as a carrier. Terms claim a claim is a bill from your health care provider doctor or hospital. Concurrently, as the death benefit increases, so does the premium. Universal life insurance the key characteristic of universal life insurance is flexibility. On march 23, 2010, president obama signed the patient protection and affordable care act ppaca into law. In canada, the benefit payment from a life insurance policy is paid directly to the persons.
This document is for informational purposes only and is not intended to alter or replace the insurance policy. Browse our glossary of common life insurance terms to clear up any confusion and better understand how life insurance works. One loan used to combine several debts into one, usually to reduce the interest rate. This is the contract of life insurance between the life insured and the life insurance company.
The contract between the policyowner and the company. The essential glossary of group benefits words and terms rise. Insurance glossary insurance terms clarified in simple. If you live beyond the term period, no benefit is payable. 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. Life insurance glossary of terms compare the market. 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. The printed document issued to the policyholder by the company stating the terms of the insurance contract. Under that policy, the insurer must compensate the policyholder in accordance with the policys terms and conditions if the asset is damaged or destroyed and the policyholder makes a claim.
Life insurance terms glossary and facts from netquote. A type of life insurance policy that provides protection for a specified period of time. A nonparticipating policy does not receive dividends. Auto insurance premiums are quoted for either 6 month or annual policy periods. Invitations for application for life insurance on are made through spectrum direct insurance services, inc. Accident enforceable and unexpected unfortunate event that may cause destruction of property, bodily injury, or death. Variable life policies combine death protection with a savings account that can be invested in stocks, bonds. An asset in insurance terms is something with monetary value that is covered by an insurance policy, such as a car or a property. A phrase used to cover any form of life insurance except term. Additionally, this informational sheet is not intended to fully set out your rights and obligations or the rights and obligations of the insurance. In terms of wealth transfer, the legal technique of dismemberment of ownership or simply dismemberment is also often favoured by the french.
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. Please read your official policy for full details about coverages. Also see the health and life insurance glossary, property and casualty insurance glossary, small business insurance glossary and terminologies used in insurance and their meanings. Insurance glossary india a to z terms of insurance. Its better to know some insurance terms before asking for a quotes. Usually, this is sold as a supplement to a permanent life insurance policy. Whole, universal, and variable life insurance each has their own provisions, but all cover you for the remainder of your life.
Of course, this isnt a comprehensive glossary of life insurance jargon. Glossary of life insurance terms department of financial. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. But, sometimes the insurance jargon can be confusing were here to help. 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. For example, you can get a 17year term life insurance policy to protect your loved ones until your mortgage is paid off. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of. This is the listed person who owns the life insurance. The latter offers some flexibility to the customer in terms of premiums and the investment aspects of the policy. Glossary of life insurance terms genesage life insurance offers this glossary of terms to help you understand our income protection and life insurance products. Most life insurance policies continue to provide cover until this term ceases, provided the policy is renewed each year. But a whole life insurance policy is less flexible than a universal life insurance policy.
Understanding your insurance policy can be overwhelming. Accidental death benefit in a life insurance policy. A life insurance policy will pay a stated amount to a beneficiary upon the death of another. A company owned solely or in large part by one or more non insurance entities for the primary purpose of providing insurance. Term life insurance protect your familys financial plan. You can find some most used terms here at our insurance terms and glossary. An agent can be independent agent who represents at least two insurance companies or a direct writer who. Before you sign your name and make your first payment, though, you want to be sure you understand what youre getting. If you have a link with great content about this page, you can add it at merger links. There are many insurance terms, words and phrases you may need to know. Browse our life insurance glossary of common terms intelliquote. Term life insurance policies have no savings element or cash value. 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. Usually applied to life and marine policies and not to agricultural.
Glossary of reinsurance terminology term definition accident year experience reinsurance experience calculated by matching the total value of all losses occurring during a 12month period with premiums earned for the same period. It permits financial services companies to merge and engage in a variety of. Learn insurance industry vocabulary that will help you better understand your insurance policies. 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. When making decisions about health coverage, consumers should know the specific meanings of terms used to. Weve curated additional glossaries of insurance terms and definitions to help you better understand the often confusing legal language of insurance. Use this glossary of insurance definitions to help you better understand what each term means. Life insurance glossary terms and definitions from nobleoak. Fidelity insurance products are issued by fidelity investments life insurance company fili, 100 salem street, smithfield, ri 02917, and, in new york, by empire fidelity investments life insurance company, new york, n. Decreasing term a term life policy in which the death benefit goes down. If you have any questions about the use or meaning of a term or expression in any particular product or literature, you. Your american family agent is the perfect person to ask. For disability insurance, the beneficiary may be the same person as the insured.
The essential glossary of group benefits words and terms. When reading the definitions, please keep in mind that this glossary is provided as a guide only curated from various sources. The two major types of life insurance policies are term life and whole life. Glossary of life insurance terms arizona department of. For health insurance, it is the amount of money payable by a health plan for the cost of covered services, as defined in the certificate of coverage. All are extremely important but on this first page, we have tried to explain in plain english what the most important and. Print and pdf formats, and quantity discounts are available.
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. Life insurance illustrations model regulation table of contents section 1. Insurance glossary understanding common insurance terms. Glossary of insurance terms that are good to know here is an insurance glossary or list of travel insurance terms that you need to know when searching for a policy. But it is also possible to get a term life insurance policy tailored to your specific needs. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. Glossary of insurance terms 1life 1life life insurance. Various rights which may be exercised under the policy contract by the policy owner. Variable life insurance a policy that combines protection against premature death with a savings account that can be invested in stocks. The term of your life insurance is a defined period of time for which the your policy is valid for. Your products term is outlined in the product disclosure statement. This is the pension you receive from the government as a result of paying national insurance ni contributions throughout your working life. 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. Insurers and intermediaries providing life insurance and other investment related insurance products6 defined as financial institutions in the fatf.
Life insurance resource center glossary of life insurance terms. Annuity retirement option or life annuity glossary of terms please click on the term to view its meaning. Cash value the money that accumulates in your life insurance policy while the policy is in force that the insured can borrow. A benefit that provides for the payment of a portion of the death benefit prior to an insureds death should the insured be diagnosed as. Insurance terms used in the area of residential title insurance. This fact sheet defines various insurancerelated terms.
The japanese nonlife insurance industry s market scale in terms of. 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. The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. Glossary of common auto insurance terms helpinsure. The person named in the policy, to whom the insurance money is paid at the death of the insured.
In life insurance, the amount of money specified in a life insurance contract to be paid to the beneficiary upon the death of the insured. Title insurance provides coverage for losses that occur when a land title is not free and clear of defects e. The insurance contracts act allows an insurer to avoid. Insurance terms and glossary learn some most used terms here. Policythe legal document issued by an insurance company to a policyholder, which outlines the conditions and terms of the insurance, also called the policy contract or the contract. 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. Universal life insurance ul, introduced in the 1980s is intended to combine permanent insurance coverage with greater flexibility in premium payments, along. See how easy it is to shop online for life insurance. Insurance companies will sometimes retroactively cancel your entire policy if you made a mistake on your initial application when you buy an individual market insurance policy. Term life insurance can provide very affordable insurance. A life insurance plan is a contract that is held between an insurance firm and the policy buyer.
Life insurance glossary insurance compare insurance. Within limits, a policyholder can choose the amount of insurance and the premium they want to pay. Insurance definitions, dictionary, glossary and terms. Insurance terminology north american training group. Life insurance jargon 20 definitions of industry terms. These general definitions are provided for educational purposes. Whole life insurance life insurance that may be kept in force for the duration of a persons life and pays a benefit upon the persons death. Learn vocabulary, terms, and more with flashcards, games, and other study tools. 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. A life insurance policy that protects against loos of life over a definate time period.
Term insurance you can combine term insurance with permanent or. These definitions do not alter or modify the terms of any insurance contract. A combination of regular, medical, and surgical insurance. Combine the advantages of life insurance with the benefits of. Many term policies only cover periods of 5, 10 or 20 years but can be renewed, usually for a higher cost, at the end of the policy. Generally refers to a life insurance policy used to fund a business continuation plan also see buysell insurance. Glossary of insurance terms cdr insurance group, inc. The named beneficiary receives the proceeds and is thereby safeguarded from the.
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