Life insurance has a vocabulary all its own. Some insurance terms might sound familiar, but have a different meaning when used in the life insurance world.
The following glossary provides insurance terms and life insurance definitions to help you speak the “language of life.”
There are basically two types of life insurance, Universal Life and Term Life.
Term Life
This is the simplest form of life and the most popular. It is intended to provide large amount insurance for a fixed period of time, but for those on a budget. Payments are fixed for the term of the policy which can last, 5, 10, 20, or 30 years.
Universal Life
Universal Life Insurance lasts for the duration of your life and has a cash value. The premium payments are above the cost of the insurance and the extra payment amount is credited towards the cash value in addition to interest paid.
The amount of interest credit by the insurer is often tied to a financial index, so it is possible to see gains or losses of the overall cash value depending on how the indexes perform. The potential benefit of Universal Life is as a stable investment vehicle.
Beneficiary
The beneficiary of your insurance policy is the person designated by you to receive the policy benefits upon your death. You may designate that the benefits from your policy be allocated to multiple beneficiaries. And you may change your beneficiary designations at any time.
Coverage Amount / Face Amount
The initial value of the policy to be paid to the insured’s beneficiary or beneficiaries in the event of the death of the insured while the policy is in force.
This value does not include adjustments for outstanding policy loans, withdrawals, dividends, paid-up additions or late/outstanding premium payments.
Health & Lifestyle Profile
The premiums that insurance companies charge for life insurance are also based in large part on the overall health and lifestyle profile of the proposed insured.
Typically, individuals in good health who do not use any kind of tobacco products or engage in any hazardous activities will be able to obtain less expensive coverage than individuals who are in poor health or who use tobacco or who engage in hazardous activities.
Different insurance companies use different criteria in determining the health status and lifestyle of the proposed insured.
Date of Birth
The premiums that insurance companies charge for life insurance are based in large part on the age of the proposed insured. Some companies use the attained age of the insured in this calculation, while other companies use the nearest age of the insured.
Insured
An individual who is currently covered under an existing life insurance policy.
Length of Coverage
Different term life insurance policies have different durations.
10, 15, 20, and 30-year term life insurance policies are very common. A 10-year level term policy will have an initial 10-year period in which premiums are level.
Premium
This is a payment to a life insurance company in exchange for a life insurance policy. The payment typically does not change on term life for the length of the policy.
Premium Mode
The frequency in which premiums are paid. Typically, the total annual premium is slightly higher when payments are spread out over the course of the year as opposed to being paid all at once.
For example, a policy with a $200 annual premium may also offer a $101 semiannual premium ($202 total annual cost), a $52 quarterly premium ($208 annual cost) and an $18 monthly bank draft premium ($216 annual cost).
Proposed Insured
An individual who is applying for coverage under a life insurance policy. (See also: Insured).
Underwriting Classification
(See: Health & Lifestyle Profile, above).
Sex
The gender (male or female) of the insured or proposed insured.
Underwriting Guidelines
Underwriting guidelines are the health and lifestyle criteria for the proposed insured that insurance companies use to determine the appropriate underwriting classification upon which to base the premiums for the coverage.
These criteria typically include age, gender, tobacco use, height/weight build, and family history of heart disease or cancer, cholesterol levels, blood pressure levels, specific health conditions, driving record, hazardous occupation or activities.
Also, military service, aviation, foreign travel or residency, U.S. citizenship and felony criminal activity. It is important that all of these underwriting guidelines are taken into consideration when evaluating any premiums quoted for life insurance coverage.
State of Residence
The state in which the insured or proposed insured resides. It is not unusual for a given insurance company to be licensed to conduct business in some states and not in others depending on their licensing.
If an insurance company is not licensed to do business in a particular state, the company may not offer any of its products in that state.
If an insurance company is licensed to do business in a particular state, each of the company’s products must be individually approved for sale in that state. It is not unusual for a given insurance company to have products that are approved for sale in one state and not approved for sale in others.
Watch the video related to insurance
Archie comes home from work in a particularly awful mood because he has to make an important decision at work: whether to lay off a minority worker or a white man. His decision to lay off a Puerto Rican leads to an interesting visit to the Bunker household. To compound his stress, Archie learns that his insurance has been canceled when his neighborhood is redlined as a bad risk.—–Season 2
Help answer the question about insurance
What kind of insurance do insurance companies need to buy for their own company?I want to start an insurance company, but I need to know what kind of insurance I need to purchase for my own company. I have done research and can't find this. (Please do not tell me how to start one, or anything else besides what insurance I need, if any.)
I don't have it and I don't trust it…human insurance is bad enough with all the small print. My dog insurance is Master Card, it's the only "insurance" I'd recommend. It covers everything, literally! Good luck though if you feel you really must purchase insurance!
I have seen many people on here say that you are automatically covered when your parents have full coverage, including insurance agents. This is not true of all companies. Call your insurance carrier and ask. It is a lot easier than finding out after an accident that you are not covered.
hes got to be lying or had lawyer take his tickets to court and won!
tickets are sent to the states motor vechicle division, thats how they find out about your tickets!
TC GL
I saw boobs!
Awesome.
Look, Ron Devious is a LEGEND and i wont have a word said against him ! “Nude Lady” ; “500 quid….40 quid….40 quid and a nude lady….dirty books ?!” Lol “It says you fill my mouth in with cement” ; “insurance jargon you know !” Lol
Sad how this is pretty much what’s going on in the U.S. with health insurance <__________<
insurance tips :
http://insurance6.cn
Reagan warned of obama and his kind, and I'm not referring to his race, He is a socialist, and health care is his door opener.
http://www.youtube.com/watch?v=fRdLpem-AAs
Please forward this video to all who question the "acting" president's agenda!!!!!
Some group policies at work do not care about preexisting conditions.
Some do. It is usually the private ones, not work connected that
up the rates. Probably something to do with—- if you can work, then
you probably are not too sick, or disabled, so you can be insured.
If it is a dependent child, would you need to take insurance for you
as well as the child, and what is the waiting period.
Work insurance takes a while to go into effect. You may have a rider
or whatever it is called, that will exclude treatment, or make you wait
so long to have insurance, or treatment for the preexisting condition.
I don't know for sure, you could find out some how who the employer
or potential employer uses and check it out on line or by calling the company.
“i hate to see a man cry, so shove off, out the office” ahahahahaha omg that had me in stitches!!!
What, insurance comes with nude ladies!?
I didn't study for this test (haha)
1-Liability
2-Uninsured motorist if you were a pedestrian
Collision if it's a hit&run in your car
3-Risk & Loss
4-Comp & Collision
5-Driving penalties
6-All of them
That would be like buying a car with a bad transmission!!! Think about it!!! LOL
I think you should go to the local building department (city or county) and apply for as built permits for these unpermitted structures. Although costly, it's better than Code Enforcement coming by, realizing that those additions/properties are unpermitted and going to court, seeking an injunction to have you (1) obtain as-built permits or (2) having them torn down.
It is more expensive to have Code Enforcement come in and seek relief from the courts (assuming you don't comply and apply for as built permits) because you may have to pay their attorneys' fees when they win.
I believe you apply for as built permits from the Building Department in the city. Make sure you're in the incorporated portion of the city, otherwise you'll have to go to the County Building Department.
Also, if the bank didn't know that these additions were unpermitted, you wouldn't have an recourse. Most foreclosures are sold as is and requires buyer's diligence. A title insurance policy may or may not disclose unpermitted additions (depends on the wording of the policy). As I recall, a title insurance policy only guarantees that you have marketable title to the property.
i really wish private insurance was that honest.
That’s what happened to the American housing market.
Never pay policy…interesting…as Social Security
which unlike etna, does pay people.