Life and Health Insurance

Becoming familiar with the following life insurance terms will make it much easier to purchase a policy. When you know these terms, you will have the best chance of getting exactly what you want.

Beneficiary: With life insurance, a person who is not the policy holder who is eligible to receive benefits, or is currently receiving them.

Cash surrender value: This amount goes to the life insurance policy holder when they surrender a cash value insurance policy. When this happens, the life insurance policy is terminated.

Convertible term life insurance: Allows you to exchange term life insurance for a more permanent option in the future.

Free look period: In some states this allows you to cancel a life insurance policy without penalty.

No-load policy: A life insurance policy that is sold direct to consumers from the insurer. This cuts out commission to a broker.

Permanent life insurance: This type of policy offers lifetime protection by combining a cash value with death benefits. These accrue over time.

Risk factors: When calculating a life insurance policy premium, risk factors are taken into consideration by the insurer. The higher the risk, the more money you will pay. Risk factors with life insurance include things such as age and health among others.

Term life insurance: This type of life insurance provides coverage for a predetermined amount of time.

Universal life insurance: This is a permanent life insurance policy that varies based on the investment return of the insurer, as well as the payments by the holder.

Variable life insurance: The cash value of this type of life insurance policy fluctuates due to the return on investment that the policy holder receives.

Whole life insurance: This is considered a type of permanent life insurance. You will be covered for your life with this policy, but there are provisions to consider.

Health Insurance Glossary

When you know the terms associated with the health insurance industry you will have a much easier chance finding what you need. These are a few of the more common terms that you will want to keep in mind.

Coinsurance: After paying any deductible with your health insurance, this is the percentage of your bills that you will have to pay.

Co-payment: Each time you visit a health provider, a co-payment for health insurance is the amount that you will have to pay to receive treatment.

Deductible: Before your health insurance company begins to pay, a deductible is an amount that you are responsible for.

Disability insurance: Coverage in your health insurance policy that will pay you money if you are unable to work due to injury.

Indemnity plan: This plan for health insurance pays for your medical expenses while letting you choose the doctor that best suits your needs. Many times, this is also known as a reimbursement insurance plan.

Long term care insurance: This type of health insurance will cover you if you have to live in a nursing home, assisted living, or other long-term care facility.

Preexisting condition: This is a condition that existed before you obtained your health insurance coverage. In most cases an insurance company will make you wait a few months before these conditions are covered.

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