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Glossary
Policy: a contract or agreement made between the insurer and the insured.
Premium: the payment made to the insurance company for insurance coverage.
Product-testing agency: compares different products according to established criteria and publishes the results for consumers to use to make purchasing decisions.
Recession: a period of reduced economic activity.
Soft information: may be judged differently by each person; includes
evaluations such as quality, durability, and usefulness.
Term life: life insurance that provides coverage for a specific period of time, usually from 1 to 20 years; term policies provide a death benefit only if the insured person dies during the term.
Umbrella liability insurance: extends over your existing insurance coverage and begins paying out once your auto or homeowner’s coverage is exhausted; for $150 to $300 a year, depending on where you live, you can get $1 million of coverage.
Underwriter’s Laboratories: establishes safety standards and tests appliances, equipment, and materials that could be fire, electric, or accident hazards, or could be used to stop the spread of fire.
Unemployment insurance: provides income for a limited time to unemployed workers.
Universal life: a permanent policy that gives the owner the right to vary premium payments and the death benefit within certain prescribed limits.
Value Card: allows you to save on certain items when you shop at a particular store.