Insurance Basics: Life & Disability

Universal Life Insurance

adjustable-benefit life insurance which allows policyholders to change the amount of insurance as their needs for insurance changes

Guaranteed Renewability

insurance policy which allows an individual to still be covered as long as he or she pays the premium

Accidental Death and Dismemberment Life Insurance

insurance policy which pays out only if the policyholder is killed/injured in a specific type of accident

Worker's Compensation

insurance which covers workers who are injured or become ill due to workplace conditions

Life Insurance

insurance which protects the people who depend upon the policyholder from extreme financial losses caused by the policyholder's death

Disability Income Insurance

insurance which provides regular supplementary income when a person is unable to work at his or her regular employment because of accident, illness or pregnancy

Elimination Period

period of time for which individuals wait before they can begin collecting benefits

Whole Life Insurance

permanent policy in which the policyholder pays a specified premium each year for the duration of entire life

Term Life Insurance

policy protects against the loss of life for a specified period of time and only pays benefits if an individual dies during the period in which the policy is covered

Social Security

provides retirement income and disability benefits

Duration of Benefits

specified period of time in which benefits will be paid