A company that provides both life insurance such as term insurance or group life cover and nonlife insurance such as property, motor or travel insurance. Insurance policies, a contract between the policyholder and the insurance company, are of different types depending on the risk they mitigate. Agent the insurance company representative who sells policies on behalf of the insurer. Weve curated a list of life and health insurance terms and their definitions. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and. 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. Glossary of life insurance terms department of financial services. 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.
Amount stated in a policy contract as payable upon the death of the person whose life is being insured. A life insurance policy that provides coverage until the death of the insured person. Term life insurance a type of policy that only gives you coverage for a limited period of time, generally from five to 30 years. 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. An event or occurrence which is unforeseen and unintended. Permanent partial this definition may vary by state. These general definitions are provided for educational. Life insurance terms glossary american family insurance. Life insurance terminology and definitions insurance. Understanding life insurance terms preferred insurance services. Insurance pdf types of insurance, scope of insurance.
Please refer to your policy or certificate of insurance for exact definitions of terms and coverage provisions. This is the english version of the original publication, which was published originally in hungarian. Unlike term insurance, whole life insurance provides insurance coverage for the lifetime of. Whole life insurance whole life insurance is also know as ordinary, standard or permanent life insurance. Life insurance is a protection against financial loss that would result from the premature death of an insured.
Every industry has its own jargon, and the health and life insurance business is no exception. Liability for damages even though fault or negligence cannot be proven. Refers to the financial strength of an insurance company. Which agency regulate insurance sector in indiainsurance service pdf. 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. 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. With term life insurance, coverage is purchased for a certain length of time, it could be as short as a 5 year policy, a short term life insurance plan or longer terms such as for ten years, 15 years. Glossary of health coverage and medical terms page 1 of 4 this glossary has many commonly used terms, but isnt a full list. The printed legal document stating the terms of insurance contract that is issued to the policyowner by the company.
Terms and conditions post office money life insurance is a contract between the life assured and royal london based on an application made by the life assured. On march 23, 2010, president obama signed the patient protection and affordable care act ppaca into law. A life insurance policy provides a cash payment when a person. Insurance in which the risk insured against is the death of a particular person known as the insured, upon whose death within a stated term for term insurance, or whenever death occurs for permanent insurance, the insurance company agrees to pay a stated sum or income to the beneficiary. These glossary terms and definitionsare intended to be educational and may. 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. The premiums are usually more affordable than permanent. Consumer glossary national association of insurance. Term life insurance glossary life insurance definitions.
Annuity retirement option or life annuity glossary of terms please click on the term to view its meaning. After all, your bills wont stop just because you need to recover. Definitions of health insurance terms in february 2002, the federal governments interdepartmental committee on. Our glossary of the most common terms, phrases, and concepts will help you brush up on life insurance definitions in no time. A life insurance policy which provides coverage for an individuals whole life rather than a specified time period. Life insurance resource center glossary of life insurance terms. An independent agent represents more than one company. Some of the most commonly used life insurance terminology and definitions useful for understanding top 20 terms sum assured. Am best, standard and poors, and moodys are three wellknown rating services. This page provides a glossary of insurance terms and definitions that are. Picking a company with the highest ratings both for financial. The definitions in this glossary are developed by the naic research and actuarial department staff based on various insurance references. Browse our life insurance glossary of common terms.
Get life insurance terms and definitions with help from the founder of wealth financial partners and a managing partner in this free video clip. This may be called eligible expense, payment allowance. These general definitions are provided for educational purposes. Introduction to insurance principles of insurance 18 the insured is the person or firm or company confronted by risk and the insurer is a person or firm or company, which specializes in the assumption. Annuitant the beneficiary of an annuity payment, or person during whose life and. See page 4 for an example showing how deductibles, co insurance and out of pocket limitswork together in a real life situation. Life insurance definition of life insurance by merriam. The amount of money paid out if death occurs during.
Life insurance terminology and definitions glossary of 20. Broad categories include life, health, motor, travel, home, rural, commercial and business insurance. The selling of a life insurance policy by a terminally ill person, so that person can receive a benefit from the policy while still alive and the purchaser of the policy can receive a. Term insurance is the most basic type of life insurance. Extension family financial management specialist, virginia tech life insurance overview a life insurance policy provides a cash payment when a person. Insurance definitions, dictionary, glossary and terms. What kind of lifestyle you want to provide for your family. When reading the definitions, please keep in mind that this glossary is provided as a guide only curated from various sources. Captive insurance company a reinsurance company, often located offshore, which is owned by a corporation or association and provides reinsurance of direct insurance written to insure the. Shortterm disability insurance can replace a portion of your regular income while you arent working due to childbirth, illness or injury. Glossary of life insurance terms arizona department of.
When youre ready to take the next step, compare quotes for free or talk to a policygenius expert. The amount actually paid on a life insurance policy at death or when. 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. 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. Our life insurance products offer cover up to age 90, with a maximum policy length of up to 50 years. Glossary of life insurance terms department of financial. Simplified issue term life insurance a form of term life insurance which allows individuals to. Bold blue text indicates a term defined in this glossary. Since whole life insurance policies are a true longterm investment, your relationship with the insurance company will literally last a lifetime. Insurance glossary understanding common insurance terms. The named beneficiary receives the proceeds and is thereby safeguarded from.
When making decisions about health coverage, consumers. Declaration part of a property or liability insurance policy that states the name and address of policyholder, property insured, its location and description, the policy period, premiums, and. Life insurance definition is insurance providing for payment of a stipulated sum to a designated beneficiary upon death of the insured. The transfer of ownership of a life insurance policy from one person. The definitions are not intended to and should not be used as the legal definitions of the terms. Shortterm disability insurance for employees lincoln. Life insurance resource center glossary of life insurance terms agent an insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides. Policy the legal document, issued by the life insurance company to the policyholder, stating the terms of the life. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business.
Maximum amount on which payment is based for covered health care services. Term life america insurance we wants you to understand our language so you can make the. Policies issued at a higher rate than standard due to impairment of the insured. The insurance contracts act allows an insurer to avoid a policy ab initio in situations where an insured fraudulently non disclosed or fraudulently misrepresented.
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