Insurance Terms Flashcards part 3

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Beneficiaries

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People who are designated by the policyholder to receive the death benefit of a life insurance policy.

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Death Benefit

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Benefit paid to the beneficiaries after the policyholder dies.

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Term Life Insurance

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Life insurance for a specified amount of time; at the death of the policyholder, the insurance company pays the death benefit to the beneficiaries.

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Whole Life Insurance (or Cash Value)

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Life insurance that lasts for the life of the policyholder and uses a portion of the premium as an investment.

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Self-Insured

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Having enough money saved and invested so a spouse or loved one could live off of it when you die, eliminating the need for life insurance.

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Dependent

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A person who relies on someone for financial support.

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Actuarial Life Table

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Life expectancy chart used by insurance agents to figure out life insurance premiums for an individual based on a variety of factors.

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Disability Insurance

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A type of insurance that will replace a portion of the policyholder’s income in the event that the policyholder becomes disabled and is unable to work.

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Elimination Period

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The period of time between when a doctor confirms a disability and when the policyholder receives a disability payment.

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Identity Theft

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The act of fraudulently gaining and using the personal information of someone else, usually for financial gain.