When shopping for insurance it is important to understand the definitions and terminology associated with the industry. Click Here to learn more.
Beneficiary
The person(s) named in the policy to receive the life insurance proceeds upon
the death of the insured.
Cash (Surrender) Value
The amount that is available in cash for loans and that may be available for withdrawals
in a whole life insurance, universal life insurance or survivorship life insurance
policy. Accessing Cash Surrender Value may reduce the death benefit and may increase
the risk of lapse.
Contestability, Contestable Clause
In an insurance there is a clause which explains the conditions under
which the insurer may contest or void the life insurance policy. This contestability
is for a limited period of time which in most states is two years. After that
period of time the insurance company can not contest the policy.
Automobile Fleet Policy
A commercial automobile policy covering five or more automobiles.
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