Insurance 101 Life Insurance Terms

The person or persons who will receive the benefit payment of your life insurance policy.

Final Expenses:
These can include funeral expenses, unpaid hospital bills, credit card balances or other debts, probate costs, or estate taxes. When you are evaluating your needs for life insurance, you should carefully consider your final expenses.

Fully Underwritten:
Life insurance plans which require some medical screening as part of the application process are referred to as fully underwritten plans. The screening frequently includes a paramedic exam to determine height, weight and blood pressure. A blood and/or urine analysis, along with other tests may also be conducted.

Guaranteed Issue:
The policy is issued without having to answer any medical questions or take a medical examination to qualify for a policy.

Level Benefit Term Life Insurance:
There are several different types of term insurance, but with level benefit term, the benefit stays the same over the course of the term, rather than decreasing as you grow older. Complete Care Life is a level Term benefit

Graded Benefit:
In a graded death benefit policy, the death benefits are not level. In the first year policyholders will usually get the premium they paid back, or be paid a certain percentage of the death benefit (usually 10%) if death should occur in year one. A larger percentage if death occurs in year two, and so on. By year five, most graded death benefits have reached a level death benefit. Complete Care Life is NOT a graded benefit, it pays the full amount from the first day the policy starts.

The price you pay for your insurance coverage.

An optional feature or coverage which you can add to your insurance plan (usually with an additional premium). For example, some life insurance policies offer accidental death riders which provide an additional benefit if death results from an accident.

Simplified Issue:
Simplified issue means that you don't have to complete a lengthy health questionnaire or get a physical to apply for coverage. Your answers to a few health questions will help us determine your eligibility.

Term Life Insurance:
This is straightforward insurance protection that covers you for a set period of time -- the term. Since there are no savings or investment features, it can be one of the most affordable ways to buy life insurance. That's why many experts recommend this type of plan. Term insurance policies are renewable for one or more additional terms, even if your health has changed. Some term insurance policies can be converted to a whole life policy, even if you are not in perfect health.

Whole Life Insurance:
Whole life insurance offers coverage for a lifetime, your premiums do not increase over time, and your coverage builds cash value. Whole Life policies are much more expensive than term based policies usually 5 to 15 times more. You can however borrow against the cash value in the policy by taking a policy loan this usually can be done after the 3rd or 4th year of the policy. For people who want permanent protection, whole life insurance can be a good choice.