The Core Basics

• Premium: This is the amount you pay on a regular basis to keep your life insurance policy in place.
• Death Benefit: This is the money your loved ones receive if you pass away while your policy is active.
• Beneficiary: The person or people you select to get the insurance money.
• Policyholder: The person who owns and manages the life insurance policy.
• Insured: The person whose life the insurance policy protects.
• Coverage Amount: The most your beneficiaries can receive from your policy if you die.

Understanding Time & Types

• Term: Coverage that lasts for a specific period, such as 10, 20, or 30 years.
• Convertible Term: A short-term policy that lets you switch to lifelong coverage in the future.
• Permanent Life Insurance: Protection meant to last your lifetime.
• Whole Life Insurance: A lifelong policy with fixed payments and a savings feature.
• Universal Life Insurance: A lifelong policy where you can change your payments and the amount your loved ones receive.
• Variable Life Insurance: A lifelong policy where your savings can grow with the stock market.
• Group Life Insurance: Basic coverage you get through your employer or another group.

The Savings Side

• Cash Value: The savings part of a permanent policy that increases as time goes on.
• SSurrender Value: The amount you receive if you decide to cancel your permanent policy.1035 Exchange: Lets you transfer your savings to a new policy without paying taxes.

Customizing Your Plan (Riders)

• Accelerated Death Benefit: Lets you get part of your payout early if you are diagnosed with a terminal illness.
• Viatical Settlement: Selling your policy to a company for cash while you are still alive.
• Accidental Death Benefit: Provides extra money if you die because of an accident.
• Child Rider: Lets you add coverage for your children to your policy.
• Disability Income Rider: Pays you monthly if you cannot work because of an injury.
• Return of Premium: Gives back all the money you paid if you outlive your term policy.
• Long-Term Care Rider: Helps cover the cost of home care or a nursing home if you need help with daily activities.

The Fine Print & Process

• Underwriting: The process where the insurance company checks your health to decide your final price.
• Paramedical Exam: A short health check, usually done at your home or work, that includes things like blood tests and checking your vital signs.
• Medical Information Bureau (MIB): A secure service insurers use to check your health history.
• Contestability Period: The first two years of your policy, when the insurer can double-check your application for accuracy.
• Suicide Clause: A rule that limits the payout if death by suicide happens within the first two years.
• Free Look Period: A 10 to 30 day window when you can cancel your new policy and get all your money back.
• Grace Period: Gives you 31 extra days to make a late payment before your coverage ends.
• Lapsed Policy: An expired policy that ended because payments were missed for too long.