Page 57 - Book12E

GLOSSARY
Glossary
Glossary of Life Insurance Terms
Understanding what a life insurance policy says and promises to deliver can be made a lot simpler by familiarizing yourself with the following key insurance terms made available by LIFE, the Life and Health Insurance Foundation for Education, www.life-line.org.
Accidental Death Benefit: Also known as double indemnity, a provision in a policy that doubles or triples the benefit in the case of death by accidental means.
Beneficiary: The person named in a policy as the recipient of the insurance money in the event of the insured’s death.
Cash Surrender Value: The amount available in cash upon the policy owner’s termination of a permanent life insurance policy before it matures or becomes payable by death.
Claim: The demand by an individual to recover losses covered under an insurance policy.
Contingent Beneficiary: The person designated to receive life insur- ance policy proceeds if the primary beneficiary should die before the person whose life is insured.
Convertible Term Insurance: A type of policy that allows the policy owner to change a term insurance policy to a permanent policy without providing evidence of insurability. The premium rate for the permanent policy is normally based on the age of the insured at the time of the conversion.
Glossary
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