Type of Insurance Policies

Monthly debit ordinary insurance

*Combination of industrial and ordinary insurance sometimes offered by home service companies.

Convertible Term Insurance

A Term policy that can be converted to a permanent type of coverage without proof of insurability.

Renewable Term Insurance

A type of term insurance that can be renewed for an agreed-on period or up to a specified age (usually 65 or 70), regardless of the insured's health

Limited Pay Whole Life

A variation of whole life insurance that charges a level annual premium and provides a level, guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to age 100. Limited-pay life is designed so that the premiums for coverage will be completely paid-up well before age 100.

Accidental Death and Dismemberment /ad&d

An insurance policy provision that protects the insured if he or she suffers loss of sight or loss of limb(s) or death by accident

ART or YRT

Annually or yearly renewable term

Modified Endowment Contract (MEC) whole life

Any cash value policy that builds cash value faster than a Seven-Pay Whole Life Contract and therefore loses the tax advantages of life insurance. Exceeds the max amount of premium paid into policy

Adjustable Life Insurance

Combines features of both term and whole life coverage with the length of coverage and amount of accumulated cash value as the adjustable factors. Premiums are flexible and may be increased or decreased to fit the specific needs. Such adjustments are not retroactive and apply only to the future.

Endowment policy

Contract providing for payment of the face amount at the end of a fixed period, at a specified age of the insured, or at the insured's death before the end of the stated period.

Joint and Survivor Option

Covers 2 individuals and saves on premium cost by averaging the age. Pays the first of two lives in the event of death

Low Premium Type (CAWL)

Includes an intermediate premium that is low initially but contains a redetermination provision after a specific period

HIGH PREMIUM TYPE (CAWL)

Initial premium is relatively high and it possesses an optional pay up or vanishing premium provision

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.

Term Life Insurance

Insurance that provides financial protection from losses resulting from a death during a definite period, or term. Greatest amount of coverage for a limited time

Variable Whole Life

Policy owner controls the investment of case values , best of both variable life and universal life

modified whole life insurance

Premium stays fixed for 5 years then increases year 6 and stays level the remainder of the policy

Annual Renewable Term

Term coverage that provides a level face amount that renews annually. This type of coverage is guaranteed renewable annually without proof of insurability.

Decreasing Term

Term life insurance in which the face amount of the policy decreases over time in scheduled steps. Most often used to cover a debt obligation (mortgage).

Target Premium in a universal life policy

The recommended amount to keep the policy in force throughout its lifetime.

Juvenile Insurance

Written on the lives of children who are within specified age limits and generally under parental control.

current assumption whole life insurance /Interest sensitive whole life /Cawl

a nonparticipating whole life policy in which the cash values are based on the insurer's current mortality, investment, and expense experience

Universal Life Insurance

a whole life policy that combines term insurance and investment elements. Fixed premium

Equity Index Universal Life Insurance

combines most of the features, benefits, and security of traditional life insurance with the potential of earned interest based on the upward movement of an equity index

straight life insurance- whole life

continuous premium whole life, charges a level annual premium for the lifetime of the insured and provides a level, guaranteed death benefit. it builds cash value. straight life has the lowest annual premium among whole life policies.

Joint Life Policy

covers the lives of 2 individuals and save on premium cost by averaging the ages of the two insureds. Joint Life policies pay the face amount after the first person covered on the policy dies. This is similar to a Joint Checking account. The policy is shared between two people, and when one person dies, the other receives the entire account. If B and M were insured under a joint life policy and B were to die, M would receive the entire benefit and would also no longer be insured. A policy that promises to pay the face amount on the death of the first of 2 lives covered by the policy is called a Joint Life Policy.

Industrial Life Insurance

issues very small face amounts, such as $1,000 or $2,000. Premiums are paid weekly and collected by debit agents. They were designed for burial coverage.

Level Term Insurance

level death benefit and level premium

Ordinary Life Insurance

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

Family Income Policies

pay an income beginning at the insured's death and continues for a period specified from the date of policy issue

Group Life Insurance

provides life insurance on a group of people such as a place of employment, association or a union in a single master contract

Term Rider

type of life insurance product which covers children under their parent's policy

Credit Policies

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

Family maintenence plan

whole life policy with level term rider (pay benefits for the length of the term rider) pays beneficiaries monthly income for a set duration of time