If one is not familiar with the typical expressions that exist in life insurance doctrine, understanding the subject is going to be a demanding task. To purchase the appropriate life insurance product, one must be acquainted with the typical terms and nuances associated with the policy. At any time in future, if you come across the critical expressions in life insurance then you can refer following terms which will make your understanding easy.
• Actuary: A specialized person trained in statistical calculations, legal-accounting methods, insurance operational methods and specific retirement plans. The actuary of an insurance company does all the calculations on the basis of health, sex and age of going-to-be insured person.
• ART life insurance: The Annual Renewable Term (ART) insurance that can be renewed on yearly basis. Generally, the premium increases each year at the time of renewal of policy.
• Burial Insurance: A small life insurance policy which is intended only to meet the emergency expenses of insured person. The coverage for burial life insurance policy ranges from $5000 to $25000.
• Child rider: It is an attachment to the existing life insurance policy which allows parents to purchase life coverage for their child without buying a new policy.
• Endow: At certain point of time, the policy owner will receive cash amount and that is nothing but a time when the cash value of policy becomes equivalent to its face value.
• Free look period: It is the definite period of time during which policy holder has a right to review and return the policy if he is not satisfied. Free look period can change from state to state and company to company.
• Irrevocable beneficiary: The beneficiary who cannot be excluded from an insurance policy without his consent is called irrevocable beneficiary.
• Mortality charges: It is the cost of insurance coverage on whole life insurance product. Mortality charges increase with the age of policyholder and they are similar to one-year term rate.
• Variable universal life insurance: Some insurance policies have sub-accounts and an option for investment which is similar to mutual fund. These policies are called as variable universal life insurance.
Buying a life insurance is one of the imperative decisions of your life which should be finalized after utter interpretation of the subject. Whenever you plan to buy life insurance policy in future, you can study above expressions to understand the meaning of complicated terms in more professional and subjective way.
If one is not familiar with the typical expressions that exist in life insurance doctrine, understanding the subject is going to be a demanding task. To purchase the appropriate life insurance product, one must be acquainted with the typical terms and nuances associated with the policy. At any time in future, if you come across the critical expressions in life insurance then you can refer following terms which will make your understanding easy.
• Actuary: A specialized person trained in statistical calculations, legal-accounting methods, insurance operational methods and specific retirement plans. The actuary of an insurance company does all the calculations on the basis of health, sex and age of going-to-be insured person.
• ART life insurance: The Annual Renewable Term (ART) insurance that can be renewed on yearly basis. Generally, the premium increases each year at the time of renewal of policy.
• Burial Insurance: A small life insurance policy which is intended only to meet the emergency expenses of insured person. The coverage for burial life insurance policy ranges from $5000 to $25000.
• Child rider: It is an attachment to the existing life insurance policy which allows parents to purchase life coverage for their child without buying a new policy.
• Endow: At certain point of time, the policy owner will receive cash amount and that is nothing but a time when the cash value of policy becomes equivalent to its face value.
• Free look period: It is the definite period of time during which policy holder has a right to review and return the policy if he is not satisfied. Free look period can change from state to state and company to company.
• Irrevocable beneficiary: The beneficiary who cannot be excluded from an insurance policy without his consent is called irrevocable beneficiary.
• Mortality charges: It is the cost of insurance coverage on whole life insurance product. Mortality charges increase with the age of policyholder and they are similar to one-year term rate.
• Variable universal life insurance: Some insurance policies have sub-accounts and an option for investment which is similar to mutual fund. These policies are called as variable universal life insurance.
Buying a life insurance is one of the imperative decisions of your life which should be finalized after utter interpretation of the subject. Whenever you plan to buy life insurance policy in future, you can study above expressions to understand the meaning of complicated terms in more professional and subjective way.