Also called yearly renewable term, it guarantees coverage for one year, and can be renewed annually at a higher premium or converted to a permanent life insurance policy. This type of insurance costs less than whole life insurance, and so, in general, pays the highest immediate benefit for your premium dollar. Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Check out our dreamsecure flexible life insurance policy. Such terms and availability may vary by state and exclusions may apply.
Browse our life insurance glossary of common terms. The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. Whole of life a plan that covers you for the rest of your life instead of a set term. This is why claybrooke has assembled a list of the most common terms you will see throughout our website in regard to insurance policies. An event or occurrence which is unforeseen and unintended. Glossary of risk management terms this is a comprehensive list of insurance terms. The term of your life insurance is a defined period of time for which the your policy is valid for. A term life insurance policy that can be renewed at the end of the policy term.
In marine insurance, a term used to define the act of an insured giving up the proprietary rights in insured property to the underwriter. Life insurance terms glossary and facts from netquote. Insurance definitions, dictionary, glossary and terms. Whole life life insurance that may be kept in force for a persons entire life and that pays a benefit upon the persons death, whenever that may be. A glossary section contains over 500 entries, including over 100 life insurance definitions provided by loma, a worldwide association of life and financial services companies. Cessions limit the capped amount of catastropheexposed business ceded to the reinsurance contract. They also may be used in a different context where the definition shown may not be applicable to insurance.
Words associated with surety and bonds and title insurance are listed separately at the end of this list. Glossary of risk management terms this is a comprehensive. Permanent partial this definition may vary by state. We feel it is important for you to be informed about the rates available to you in.
If you have personal property replacement cost coverage, your insurance will pay the full cost to repair an item or buy a new one. Life insurance illustrations model regulation table of contents. Whole life insurance life insurance that may be kept in force for the duration of a persons life and pays a benefit upon the persons death. The amount actually paid on a life insurance policy at death or when the policyowner receives payment at surrender or maturity. Term life insurance glossary life insurance definitions and. The named beneficiary receives the proceeds and is thereby safeguarded from the. Dictionary of insurance terms a absolute liability. For others, benefits are a portion of a total compensation package or total rewards for employees. Third party person other than the insured or insurer who has incurred losses or is entitled to receive payment due to acts or omissions of the insured. Liability arising from extremely dangerous operations. Maximum amount on which payment is based for covered health care services. Insurance handbook insurance information institute. 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. In this life insurance glossary, we have defined many of these terms used throughout this website and, perhaps in your policy.
Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on. Life insurance glossary of terms compare the market. 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. Glossary of insurance terms additional insured a person or organization not automatically included as an insured under an insurance policy that is included or added as an insured under the policy at the request of the named insured.
Bold blue text indicates a term defined in this glossary. Glossary of health coverage and medical terms page 1 of 4. Form of life insurance allowing the owner to change the face amount, premium amount. Thankfully, there are resources to help consumers navigate the maze of unfamiliar terms. Generalinsurancedefinitions institute and faculty of. Life insurance resource center glossary of life insurance terms. Your products term is outlined in the product disclosure statement. The purpose of the glossary is to acquaint the reader with easytounderstand definitions of workers compensation terms. A flood, earthquake or other non preventable accident resulting from natural causes that occur without any human intervention.
Generally, permanent insurance has fixed premiums and death benefits. A comprehensive, common set of benefits could include many components, e. The act of terminating a policy with an insurance company and replacing it with a new insurance policy. A type of life insurance policy that provides protection for a specified period of time. Annually renewable term a term life insurance policy that may be renewed on a year by year basis, usually at a much higher premium. In a wider context casualty insurance may cover all non life insurances. 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. Actuary a professional trained in the mathematics of insurance and risk management, including the calculations of. Like any industry, the life insurance industry has its own unique terms.
Glossary of insurance terms this list is not meant to be all inclusive, but should help with your understanding some insurance terms used in our website. A directory lists a wide range of insurance organizations, including national, state and specialty associations. Life insurance available through an employer or association that covers participating employees and members under one master insurance policy. Life insurance with critical illness as above but also pays out on diagnosis of certain medical conditions as laid out in the policy, i. Various rights which may be exercised under the policy contract by the policy owner. To make an informed and hasslefree decision when you purchase your next life insurance policy, make sure to read through this glossary of life insurance definitions to better understand what the various terms mean. Bodily injury bodily harm, sickness, or disease, including resulting death. Liability for damages even though fault or negligence cannot be proven. Glossary, abbreviations, illustrations real property assessment guidelines page 2 glossary the real estate appraisal terms and definitions in this glossary apply throughout the real property assessment guidelines. If kept long enough, the premium on this policy will increase faster than the death benefit.
Adjudication the final determination of the issues involving settlement of an insurance claim. See page 4 for an example showing how deductibles, co insurance and out of pocket limitswork together in a real life situation. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. Browse our life insurance glossary of common terms intelliquote. Allied health professional ahp ahps are individuals trained to support, complement, or supplement the professional functions of physicians, dentists, and other health professionals in the delivery of health care to patients. Most group life insurance policies are term insurance policies that terminate when the member or employee reaches a certain age or leaves the organization and do not accumulate any cash surrender value. When reading the definitions, please keep in mind that this glossary is provided as a guide only curated from various sources. This should be equivalent to paid premiums, in most instances. On march 23, 2010, president obama signed the patient protection and affordable care act ppaca into law. Term life america insurance we wants you to understand our language so you can make the best choice for your family.
An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of this regulation, be clearly labeled life insurance illustration and. The legal document that the life insurance company issues to the policy holder and that outlines the terms of the insurance. These often take the form of glossaries, or lists of specialized terms relating to a special subject in this case, insurance with accompanying definitions. A type of long term life insurance that offers flexible payments, an adjustable death benefit, and the cash value element of whole life insurance. 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. If, at any time you come across an insurance term in. The insurance business encompasses a daunting array of industry jargon. 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. If youd like clarification on any term you notice on your policy, do not hesitate to contact one of our knowledgeable agents at 1. Concurrently, as the death benefit increases, so does the premium. A term life policy that increases the death benefit each year during the term. Unlike term insurance, whole life insurance provides insurance coverage for the lifetime of the insured. Health care services that your health insurance or plan doesnt pay for or cover. Insurance glossary understanding common insurance terms.
Life insurance terms glossary american family insurance. Every industry has its own jargon, and the health and life insurance business is no exception. Most life insurance policies continue to provide cover until this term ceases, provided the policy is renewed each year. We have written this a to z guide to help you to understand some of the terms you will come across when you buy a house, go into business, take out insurance, invest your money and do all the other things you might have to do in your lifetime. 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. This may be called eligible expense, payment allowance.
Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. Glossary of life insurance terms department of financial. The term property insurance includes many lines of available insurance. Term insurance life insurance payable only if death of insured occurs within a specified time, such as 5 or 10 years, or before a specified age. An independent agent represents more than one company. Insurable interest proof that a person who takes out a life insurance policy on someone else has a substantial and lawful emotional or financial interest in that persons continued wellbeing. Term life insurance that may be renewed for another term without evidence of insurability. Usually, this is sold as a supplement to a permanent life insurance policy. These glossary terms and definitions are intended to be educational and may be different from the terms and definitions in your plan. Whole life insurance policies also provide taxdeferred buildup of cash value, payable upon surrender or payment default. Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage.
Term life insurance provides life insurance coverage for a designated period of time. Glossary of commercial insurance terms commercial insurance is divided into two main categories. When making decisions about health coverage, consumers should know the specific meanings of terms used to discuss health insurance. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. The difference reflects the insurers expenses for operating the plan. These definitions represent a common or general insurance andor legal use of the term. Since were all about simplicity here at simplified life, weve compiled this handy glossary so that you can understand some of the most commonly used terms in the world of life insurance. 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. A life insurance policy that provides a stated benefit upon the holders death, provided that the death occurs within a certain specified time period. Glossary of life insurance terms arizona department of. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non. Term life insurance policies have no savings element or cash value. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. 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.
A complaint that you communicate to your health insurer or plan. Adjustable life insurance age at entry age at maturity age limits annual premium annuity annual premium payment mode annualised premium annuitant annuity retirement option or life annuity glossary of terms please click on the term to view its meaning term assignee. Term definition cession the amount of insurance risk transferred to a reinsurer by a ceding company. Below are definitions for some of the more commonly used terms and how. Agent the insurance company representative who sells policies on behalf of the insurer. 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. A term life insurance policy that covers the policyholder for a duration of 10, 15, 20 or 30 years or however many years the insured person chooses as the coverage term. Some words and phrases may be defined differently by other individuals or organizations. Health care services that help a person keep, learn or. If you live beyond the term period, no benefit is payable. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. 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. Life insurance glossary quickquote quickquote term.
Usually, this is purchased as a supplement to existing insurance for temporary needs. 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 printed legal document stating the terms of insurance contract that is issued to the policyowner by the company. Consumer glossary national association of insurance. Nonterm group life means a group policy or individual policies of life insurance issued to members of an employer group or other permitted group where. A company owned solely or in large part by one or more non insurance entities for the primary purpose of providing insurance. The definitions are not intended to and should not be used as the legal definitions of the terms. The definitions are based on various insurance references. 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. Benefits are paid only if something happens to you within that specified period, known as a term. 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. Glossary of life insurance terminology gerber life insurance. 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.
An agent can be independent agent who represents at least two insurance companies or a direct writer who. The terms are interchangeable but modern usage sees insured. Life insurance is a protection against financial loss that would result from the premature death of an insured. These general definitions are provided for educational purposes. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells. A life insurance plan is a contract that is held between an insurance firm and the policy buyer. The process of continuing a policy by paying the premium due. Not all concepts or coverages identified in this list are found at chapman university.
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