Life insurance policies

Annual Renewable Term

A Term Life Insurance contract which gives the policyowner the option to renew the policy each year without showing proof of insurability. Premiums increase at each renewal.

Endowment policy

An insurance product that pays out a lump sum after a specified term or if the insured person dies before the end of the term. Endowment policies are often used as a way of saving over the long term.

Credit Policies

Are typically purchased using a decreasing term life insurance policy, with the term matched to the length of the loan period and the decreasing insurance amount matched to the declining loan balance. Since Credit life insurance is designed to cover the life of debtor and pay the amount due on a loan is repaid, credit policies can only be purchased for up to the amount of the debt or loan outstanding . For example, if you wanted an insurance policy to protect a $20,000 , 5 year auto loan , you would use a 5-year decreasing term life insurance policy with an initial face value of $20,000. You will pay the same level premium every month for the 5-year term of the policy. The face cause will start out at $20,000 and change according to a schedule (the decreasing balance of the auto loan) after 5 years , the car will be paid for and the insurance policy will no longer be needed

Adjustable Life Policy

Can change premium payments or period of coverage as your needs change

Term Life Insurance

Gives you the greatest amount of coverage for a limited period of time. Term insurance is only good for a limited period of time because it has TERMination date. Term insurance is an inexpensive type of insurance, making it an attractive option for large policies. Term life is the CHEAPEST type of pure life insurance, and due to having a termination date and not having any cash value, it will ALWAYS be cheaper than a whole life policy with the same face value. It provides a pure death protection since it's only pays a death benefits benefits if the insured during policy term.

whole life insurance

Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death, whenever that may be.

Convertible Term

Is a provision that allows policyowners to convert their term insurance into permanent policies without showing proof of insurability. Convertible term provides temporary coverage that may be changed to permanent coverage without evidence of insurability. For example , if you take out a term insurance policy when you are young to take advantage of your good health and the policy lower premium , but want the option convert the policy to a permanent one for final expense benefits once your improve , you would want convertible term life policy l. The conversion privilege of a group term insurance policy, although your insurability is guaranteed, your age is typically reevaluated to your current (attained) age , not left at the age you were when you applied for the original term policy. Convertible Term would allow you take your temporary coverage and change it to permanent coverage without evidence of insurability or good health, but your premiums will increase due to using your attained age.

Level Term

Is also called level premium level term, has a level face amount and level premiums. Premiums tend to be higher than annual renewable term because they are level throughout the policy period. However the premiums will increase at each renewal. Life insurance written to cover a need for a specified period of time at the lowest premium is called Level Term Insurance always expires at the end of the policy period . For example , if D needs life insurance that provides coverage for the remainder of her working years and wants to pay as little as possible , D would need Level term provides a fixed , low premiums in exchange for coverage which lasts a specified time period.

Group Life Insurance

Is insurance written for members of a group, such as a place of employment, association or a union. Coverage is provided to the members of that group under one master contract. The group is underwritten as a whole, not on each individual member.One of the benefits of group life coverage is usually there is no evidence of insurability required.

Renewable term

Is term insurance that guarantees the insured the insured the right continue term coverage after expiration of the initial policy period without having to prove insurability. For example, if you have a 10-year renewable and convertible term ; After the 10 years are up , the policy terminates or you can renew it. If you renew it the premium price will go up, and you will have the policy for another 10 years . This cycle continues until you are too old Renew or it's too expensive. All TERM insurance has a final TERMINATION date where you can no longer renew it.

Increasing term

Is term life insurance that provides an increasing face amount over time based on specific amounts of percentage of the original face amount.

Decreasing Term

Is term life life insurance that provides an annually decreasing face amount over time with level premium. These policies are usually used for mortgage protection. A decreasing term policy is a type of life policy which has death benefit that adjusts periodically (according to a schedule) and is written for a specific period of time. Decreasing term policies are usually written for mortgage or other debt that typically decreases over time until it is paid off. For example, if D needs life insurance that provides coverage for the remainder of her working years and wants to pay as little as possible , D would need Level term. Level term provides a fixed, low premium in exchange for coverage which lasts specified time period.

Ordinary Life Insurance

Is the life insurance of commercial companies not issued on the weekly premiums basis. It is made up of several types of individual life insurance, such as temporary (term), permanent (whole)

Industrial Life Insurance

Issues a very small face amounts, such as $1000 or $2000. Premiums are paid weekly and collected by debit agents.They were designed for burial coverage.

Non-Medical Life Insurance

Non-Medical Life Insurance typically does not require a medical exam and tends to be more expensive than medically underwritten policies.

Juvenile Insurance

Permanent insurance written on underage children (usually from one day to age 14 or 15 years.)

Equity Index Universal Life Insurance

Policyholders to link accumulation values to an outside equity index, like the S&P 500 Minimum guaranteed fixed interest rate If the return on the index exceeds the policy's guaranteed rate of return, the cash value will reflect that of the index

Family Maintenance Policy

Same as WL but w/ Level Term rider; upon death, pays monthly income for FULL term AFTER which pays full death benefit.

Term Riders

Term riders may be attached to virtually any permanent policy, interest sensitive, or term policy to provide an amount of temporary extra insurance protection for a fixed period of time. These riders are useful when an insured needs more insurance or a decreasing amount of coverage for a limited time. Example: mortgage protection.

Family Income Policy

Which special policy combines decreasing term insurance with whole life insurance to provide the insured's family with a monthly income upon the death of the insured, while maintaining permanent coverage until the end of the income payments?

Target Premium

is a recommended amount that should be paid on a policy in order to cover the cost of insurance protection and to keep the policy in force throughout its lifetime.

Variable Life Insurance

life insurance in which the benefits are a function of the returns being generated on the investments selected by the policyholder

Target Premium

recommended amount that should be paid on a policy in order to cover the cost of insurance protection and to keep the policy in force throughout its lifetime

cash value

the amount received after giving up a life insurance policy