Life Insurance Terms

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Agent
Life Insurance is typically sold by agents, either those who represent several insurance companies or those who only represent one company. With eLifePolicy term life insurance, you can apply easily online without an insurance agent.

Beneficiary
A beneficiary is the person(s) the insured specifies to receive the life insurance proceeds following the insured’s death.
               
Coverage
Permanent life insurance provides protection for your entire lifetime, while term life insurance offers protection for a specific period of time.

Death Benefit
Amount paid to the beneficiary following the death of the insured; specific amount is stated in the terms of the policy.

Face Amount
The amount stated on the face of the policy that will be paid in the event of death.

Free Look
eLifePolicy offers a 30 day period to examine your term life insurance policy. If you cancel the policy during this time, you will receive a full refund.  

Insured
The person for whom the life insurance policy is issued.

Life Insurance
An agreement (or contract) that provides protection for the lost income of the insured as a result of their death.

Medical Examination
Typically a requirement for many insurance application processes, the medical exam provides proof of health. Term life insurance from eLifePolicy, however, does not require a medical exam as long as you answer a few health questions.

Permanent Life Insurance
Permanent life insurance is considered any form of life insurance except for term life. Permanent life insurance builds cash value over the life of the policy.

Premiums
Premiums are the monthly or yearly payments necessary for the insurer to buy a policy and keep it in force.

Rating
Provided by a number of credit agencies, ratings are the “grade” that life insurance carriers receive for financial strength and ability to meet claims obligations. A.M. Best Co., Duff & Phelps Inc., Fitch, Inc., Moody’s Investors Services, Standard & Poor’s Corp. and Weiss Ratings, Inc. are the agencies that provide these scores. A high financial rating is different from a consumer satisfaction rating.

Risk Class
Risk classification contributes to the amount of premiums, and can be a cause to be denied coverage if the potential insured is high risk. Among the most common risk classes used by life insurance companies are standard, preferred, nonsmoker, substandard, and uninsurable.

Term Life Insurance
A term life insurance policy provides protection for a specified period of time and does not build cash value. The death benefit is payable if the insured dies during a specific period.

Underwriting
Underwriting involves the process of examining and assessing life insurance policies to determine the risk class of the proposed insured.

Universal Life Insurance
Universal life insurance is a flexible type of permanent life insurance, allowing you to make adjustments to the amount of your premium or death benefit at any time. A universal life insurance policy provides lifelong coverage and accumulates tax-deferred cash value over time.

Whole Life Insurance
Whole life is the basic type of permanent life insurance that accumulates cash value while providing a level premium for the life of the policy.