This should be equivalent to paid premiums, in most instances. Sep 18, 2019 with term life insurance, coverage is purchased for a certain length of time, it could be as short as a 5 year policy, a short term life insurance plan or longer terms such as for ten years, 15 years, 20 years, 25 years, 30 years and in some cases, even longer. Every industry has its own jargon, and the property and casualty insurance business is. Glossary of life insurance terminology gerber life insurance. Apr 02, 2019 life insurance is a protection against financial loss that would result from the premature death of an insured. Insurance definitions, dictionary, glossary and terms. Therefore, we are providing this glossary of life insurance terms. Insurance terms used in the area of residential title insurance. Glossary of insurance terms actuary a professional trained in the mathematics of insurance and risk management, including the calculations of premiums, policy reserves and other values.
This type of insurance costs less than whole life insurance, and so, in general, pays the. Glossary of health coverage and medical terms omb control numbers 15452229, 12100147, and 09381146 page 1 of 6 glossary of health coverage and medical terms this glossary defines many commonly used terms, but isnt a full list. Term life insurance a policy that gives protection for only a definite period of time e. This glossary is intended as a general aid to help you understand some of the commonly occurring phrases and jargon used in the insurance world. On march 23, 2010, president obama signed the patient protection and affordable care act ppaca into law. A contract of insurance is that whereby one party, the insurer. Adjustable life insurance age at entry age at maturity age limits annual premium annuity annual premium payment mode. Glossary of life insurance terms department of financial services. Insurance terms and definitions are intended for informational purposes only and may vary in their applicability from state to state. You should read them carefully and keep them in a safe place for future reference. If you have any questions about the use or meaning of a term or expression in any particular product or literature, you.
Common health insurance terms and definitions wps health. Our glossary of the most common terms, phrases, and concepts will help you brush up on life insurance definitions in. Glossary of life insurance terms department of financial. Also referred to as whole life insurance, straight life insurance, or continuous premium life, and is different rom term insurance in that it includes a cv buildup. In some cases, whole life insurance premiums are three to five times as much as term life premiums, at least at the onset. An asset in insurance terms is something with monetary value that is covered by an insurance policy, such as a car or a property.
Whole life coverage the type of coverage that can last for as long as the insured is alive, provided that all of the premiums are paid. Term life insurance life insurance that provides protection for a specified period of time. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. When reading the definitions, please keep in mind that this glossary is provided as a guide only curated from various sources. Our glossary of the most common terms, phrases, and concepts will help you brush up on life insurance definitions in no time. Term life insurance provides life insurance coverage for a designated period of time. Modern life insurance bears some similarity to the. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of. View the expanded gerber life glossary of life insurance terms here. Life insurance glossary of common terms we recognize you are looking to make the best decisions for you and your family by comparing online insurance quotes. With term life insurance, coverage is purchased for a certain length of time, it could be as short as a 5 year policy, a short term life insurance plan or longer terms such as for ten years, 15 years, 20 years, 25 years, 30 years and in some cases, even longer.
When youre ready to take the next step, compare quotes for free or talk to a policygenius expert. This type of coverage usually keeps the same premium rate throughout the life of the policy. It may also include disablement and can be offered as an option in connection with credit cards and auto loans. It is the proposers or life insureds age when the policy matures or the contract comes to an end. Here, youll find plainenglish definitions for 33 of the most common insurance terms. If you have any questions about the use or meaning of a term or expression in any particular product or literature, you should raise them with the provider concerned. The provided terms and definitions do not in any way replace or otherwise alter the definitions and information. Life insurance terms glossary life insurance definitions when it comes to protecting what matters most, life insurance is an easy and proactive way to ensure youre financially taking care of your loved ones. Glossary of insurance terms the az for insurance practitioners terms generally associated with reinsurance ab initio a term used to describe avoidance of a contract from its inception or its beginning. These general definitions are provided for educational purposes. Insurance glossary understanding common insurance terms. Policy the legal document, issued by the life insurance company to the policyholder, stating the terms of the life insurance contract.
We feel it is important for you to be informed about the rates available to you in order to make intelligent decisions about your coverage. The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. Captive insurance company a reinsurance company, often located offshore, which is owned by a corporation or association and provides reinsurance of direct insurance written to insure the corporation or the associations members. See page 4 for an example showing how deductibles, co insurance and out of pocket limitswork together in a real life situation. Terms and conditions post office money life insurance is a contract between the life assured and royal london based on an application made by the life assured. Life insurance terms glossary life insurance definitions when it comes to protecting what matters most, life insurance is an easy and proactive way to ensure youre financially taking care of. Liability for damages even though fault or negligence cannot be proven. A flood, earthquake or other non preventable accident resulting from natural causes that occur without any human intervention. Not sure where to start when it comes to learning about and shopping for life insurance. Glossary of reinsurance terminology term definition accident year. A benefit that provides for the payment of a portion of the death benefit prior to an insureds death should the insured be diagnosed as. The reserve reflects the present value of all future payments to an open long term disability claimant, and is revalued on a regular basis. Find a columbus life independent agent near location zip. The printed legal document stating the terms of insurance contract that is issued to the policyowner by the company.
An adjustment rider to a life insurance policy that. They receive the death benefit upon the contract holders death. These definitions represent a common or general insurance andor legal use of the term. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells policies for one company only. Browse our life insurance glossary of common terms. Agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer. Term life america insurance we wants you to understand our language so you can make the best choice for your family. The definitions are based on various insurance references. Annuity retirement option or life annuity glossary of terms please click on the term to view its meaning. This page provides a glossary of insurance terms and definitions that are.
Life insurance definition of life insurance by merriamwebster. If, at any time you come across an insurance term in. The difference reflects the insurers expenses for operating the plan. Glossary of health insurance terms december 12, 2008 broker a salesperson who has obtained a state license to sell and service con tracts of multiple health plans or insurers, and who is considered to be an agent of. Declaration part of a property or liability insurance policy that states the name and address of policyholder, property insured, its location and description, the policy period, premiums, and supplemental information. Life insurance definition is insurance providing for payment of a stipulated sum to a designated beneficiary upon death of the insured. When making decisions about health coverage, consumers should know the specific meanings of terms used to discuss health insurance.
The amount actually paid on a life insurance policy at death or when the policyowner receives payment at surrender or maturity. Tort a private wrong, independent of contract and committed against an individual, which gives rise to a legal liability and is adjudicated in a civil court. Glossary of insurance terms am bests consumer insurance. Once that period or term is up, it is up to the policy owner to decide whether to renew or to let the coverage end. Life insurance is a protection against financial loss that would result from the premature death of an insured. Also see the health and life insurance glossary, property and casualty insurance glossary, small business insurance glossary and terminologies used in insurance and their meanings.
Life insurance resource center glossary of life insurance terms. Understanding life insurance terms preferred insurance services. In this life insurance glossary, we have defined many of these terms used throughout this website and, perhaps in your policy. A person responsible for investigating and settling a claim. Life insurance terms glossary american family insurance. Maximum amount on which payment is based for covered health care services.
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Dictionary of insurance terms a absolute liability. Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on. Benefits are paid only if something happens to you within that specified period, known as a term. The named beneficiary receives the proceeds and is thereby safeguarded from the. Term insurance is the most basic type of life insurance. A professional trained in the mathematics of insurance and risk management, including the calculations of premiums. Browse our life insurance glossary of common terms intelliquote. Consumer glossary national association of insurance. Here are definitions of the most common terms and phrases youll find in a policy. Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. An event or occurrence which is unforeseen and unintended. Yet every day, its becoming more and more important for health care consumers to have at least a basic knowledge of the industrys terminology.
It is the proposers or life insureds age at the time of filling the proposal form or entering into a contract. The insurance contracts act allows an insurer to avoid. The dollar limit for how much of a homes value can be used to determine the amount of money you can get from a federally insured home equity conversion mortgage reverse mortgage. Term used in universal life policies to describe the total of all premiums and earnings credited to the account before deductions for any expenses, loans, and surrenders. A legal definition of insurance that appears in many insurance laws is the following. Specific exclusions are often written into the contract to limit the liability of the insurer. Dec 27, 2019 life insurance terminology doesnt have to be confusing. Nov 29, 2018 the provided terms and definitions do not in any way replace or otherwise alter the definitions and information contained in individual insurance policies. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and. Pays for damage to an insured vehicle when it hits or is hit by another car or object, or if the car overturns. Bold blue text indicates a term defined in this glossary. Amount stated in a policy contract as payable upon the death of the person whose life is being insured. Annuitant the beneficiary of an annuity payment, or person during whose life and.
These definitions do not alter or modify the terms of any insurance contract. An independent agent represents more than one company. This may be called eligible expense, payment allowance. Insurance glossary india a to z terms of insurance. If death occurs during the term for which the policy is written, proceeds are payable to the beneficiary. These terms and conditions are part of the contract between the life assured and royal london. Comprehensive loss underwriting exchange clue report.
A life insurance policy that provides coverage until the death of the insured person. Glossary of group insurance terms disabled life reserve dlr. Glossary of insurance terms you may need to know columbus. Form of life insurance allowing the owner to change the face amount, premium amount. A type of life insurance with a limited coverage period. Different types of life insurance policies goodfinancialcents. Weve curated additional glossaries of insurance terms and definitions to help you better understand the often confusing legal language of insurance. This type of insurance costs less than whole life insurance, and so, in general, pays the highest immediate benefit for your premium dollar. If the insured survives the term, the policy expires.
Use this informative property and casualty insurance glossary to better understand basic insurance terms and definitions. Glossary of health coverage and medical terms page 1 of 4 this glossary has many commonly used terms, but isnt a full list. This coverage is subject to the terms, limits and conditions. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer. Page 4 of 18 term definition cession the amount of insurance risk transferred to a reinsurer by a ceding company. A type of life insurance policy where a trust company is named as the beneficiary and distributes the proceeds of the policy under the terms of the trust agreement. Please read your official policy for full details about coverages. Learning about life insurance can be a daunting task, especially if one doesnt know the meaning of the specialized words, of which there are many.
Policy loan a loan a life insurance company makes to a policy owner. Learn insurance industry vocabulary that will help you better understand your insurance policies. Its okwe know as well as anyone that the language of health insurance can be hard to understand. Insurance glossary understanding common insurance terms this glossary provides insurance terms definition and explanation commonly used in insurance business world. Some words and phrases may be defined differently by other individuals or organizations. Glossary of life insurance terms arizona department of. They also may be used in a different context where the definition shown may not be applicable to insurance. Like any industry, the life insurance industry has its own unique terms. Every industry has its own jargon, and the health and life insurance business is no exception. These glossary terms and definitions are intended to be educational and may be different from the terms and definitions in your plan or health insurance. Weve curated a list of life and health insurance terms and their definitions to help you better understand the confusing language of insurance. Whole life insurance policies also provide taxdeferred buildup of cash value, payable upon surrender or payment default. Whole life insurance whole life insurance is also know as ordinary, standard or permanent life insurance. Title insurance provides coverage for losses that occur when a land title is not free and clear of defects e.
Below are definitions for some of the more commonly used terms and how. Just like term life insurance, beneficiaries exist in a whole life insurance policy. A company owned solely or in large part by one or more non insurance entities for the primary purpose of providing insurance. These glossary terms and definitionsare intended to be educational and may be different from the terms and definitions in your plan. The most obvious difference, at least superficially, is cost. Unlike term insurance, whole life insurance provides insurance coverage for the lifetime of the insured. Agent the insurance company representative who sells policies on behalf of the insurer. Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions.
A life insurance policy provides a cash payment when a person. An agent can be independent agent who represents at least two insurance companies or a direct writer who. Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on employmentbased health insurance surveys approved the following set of definitions for use in federal surveys collecting employerbased health insurance data. Under that policy, the insurer must compensate the policyholder in accordance with the policys terms and conditions if the asset is damaged or destroyed and the policyholder makes a claim. Thank you for choosing to learn more about residential title insurance. Either a specified dollar amount, a percentage of the claim amount, or a specified. Permanent expected to last throughout the insured person s life, irrespective of when the cover ends or the. We think youll agree that a little knowledge will go a long way toward helping you make sense of it allso you can make smart decisions that will benefit you and your family, today and for years to come. Deductible the amount of loss paid by the policyholder.
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