Life Insurance Glossary
Article by Frederick Singletonne
Life insurance coverage, also called life assurance, is a grey area for a lot of people. Speaking for myself – I did not have a life insurance policy in place until my 30th birthday! Luckily I had no need for such a policy before then, but what if I hadn’t been that fortunate?
I really believe that if individuals have a better understanding of what life insurance coverage entails and the benefits associated with it, far more people when obtain life assurance to protect their future!
Let us take a look at a couple of life insurance terms and keyword phrases.
A is for agent. An agent is an approved person associated with a particular insurance company and will therefore be able to sell you services and contracts for a specific insurance carrier.
B is for beneficiary. A beneficiary is the person that is selected to take delivery of the benefit when the insured dies. A hubby will often obtain a life insurance policy which will look after his wife and loved ones once he’s no longer there to care for them.
C is for contingent beneficiary. If an original beneficiary of n policy is not alive when the policy is about to compensate, a contingent beneficiary will be named to take delivery of the proceeds of the policy. A good example of this is where a hubby nominates his better half as first beneficiary, but if the couple are both killed in a car accident, their children might receive the proceeds.
D is for death benefit. The death benefit is the total amount of cash that will be paid to the nominated person once the insured (the policy holder) passes away.
E is for exclusions. All insurance policies, regardless of whether it’s short-term insurance or long term investments for example life assurance, will stipulate certain scenarios or conditions in which case the policy will not pay out. It is vital to be fully aware of all such exceptions to make sure that a policy will pay out when it ought to.
F is for final expenses… Final expenses are expenses that are incurred at the time of a person’s passing on. This could include everything from funeral expenses to court expenses and income taxes. G is for grace period. Do not forget that if you don’t pay your policy, the insurance company has the full right to cancel your insurance cover. Usually there is a period of time after the due date of your premium where you will still be insured. This can take care of you in the unforeseen event that your income might be paid late or a similar scenario, where you might not be able to pay your premiums on the required date. Make sure that you are aware of the grace period.
H is for. (Sorry, but I cannot seem to find any life insurance term that starts with an H!). H might be for “How can you still be going about doing all of your day-to-day tasks if you don’t have life assurance in place?”
Life insurance, life assurance, life policies. call it what you wish, but make certain you have your insurance in position!
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For more information about life assurance visit the website http://www.insurance.co.za