Life insurance can be a confusing topic to figure out. Here are a few terms that will help you clearly speak the language of life insurance. For more details on these terms or on any other life insurance questions you have, trust the Deluxe Insurance Group (Duluth) serving Duluth, MN to meet your needs.
Accelerated Death Benefits: Benefits that are available before death. They might also be called living benefits and can often be accessed in the event of a chronic or terminal illness
Accidental Death Insurance: A frequent add-on to policies that are paid out if the insured person dies because of an accident
Annuity: This pays out a fixed sum of money to the policy holder at regular intervals
Annuity Certain: Pays an income for a pre-determined number of years and will then pay the beneficiary the remainder of the policy if the insured dies before the end of the term
Beneficiary: The person or people chosen by the policy holder to receive the proceeds from an insurance policy if the insured dies
Death Benefit: Amount of money paid out to a beneficiary after the policy holder dies
Living Benefits: Advance cash payment of part of a policy before the policy holder dies. Provides financial assistance to the insured before their death
Policy Holder: The person who bought or owns the life insurance policy
Rider: Can be purchased in addition to the life insurance policy to provide extra benefits to the insured
Term: The amount of time that the policy holder is insured
Underwriter: The person or company that decides if a potential policy holder is insurable
Now that you’re familiar with life insurance terminology, reach out to the team of professionals at Deluxe Insurance Group (Duluth) serving Duluth, MN to get answers to all your other questions!