Thank you for visiting our online support center. We are currently in the process of updating this area so check back frequently. For now check out our definition of some common insurance terms.
Deductible
The portion of a claim to be paid by the insured before any payment is made by the insurer.
Application for insurance
This is the form on where you state information and answer questions from the
insurance company about yourself and your history. This application along with
information from a medical examination, if taken, from your physicians, any hospitals
you may have visited and investigation are what’s used by the insurance company
to decide whether or not to offer you life insurance and at what rate.
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.
Convertible Term Insurance
Term insurance which can be exchanged (converted), at the option of the policyowner
and without evidence of insurability, for a whole life insurance policy or universal
life insurance policy.
Face Amount
The amount stated on the face of the policy that will be paid in case of death.
It does not include additional amounts payable under accidental death or other
special provisions, or acquired through the application of policy dividends.
Grace Period
Life insurance premiums are due on a certain date, if you are late in paying,
policies allow a period of time where you can still pay your premium and not lose
your polcy. This is the grace period. Most policies allow a grace period of
30 days from the due date. After the grace period, if the premium is not paid,
the policy can lapse i.e. be terminated by the insurance company.
Insurability
Acceptability to the company of an applicant for insurance.
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