Page 89 - Book5E
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GLOSSARY
Glossary
Accidental death benefit: also known as double indemnity, a provision in a policy that doubles 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.
Better Business Bureau: a national association supported by business memberships that reports any product complaints received.
Brand: a product identified by name as the product of a particular manufacturer; often influences the purchasing decision.
Capital Needs Analysis: an evaluation of your family’s financial needs after your death compared to your personal financial assets; used to determine the amount of life insurance you should purchase.
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.
Catastrophic health insurance: requires that you pay for the first $1,000 to $5,000 in medical bills, but covers everything beyond that amount up to a limit of $500,000 to $1 million; significantly reduces the amount of monthly premiums compared to standard health insurance.
Chronic debt: ongoing debt that is never paid off.
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