Glossary of Life Insurance Terms

In the quest to find great life insurance, you must not go blindly. It is important that you know what you are getting yourself into. That includes learning important terms and keywords that you will come across during life insurance selection, maintenance and utilization. The following are some different life insurance terms that you need to know. Take a few minutes and get to know the terminology. You’ll be glad you did.

Expand Your Vocabulary

Universal life insurance
This is a form of whole life insurance. A piece of the premium you pay helps provide the insurance that covers the death. The rest is generally invested in some form that helps gain interest.
Universal variable insurance
In this policy, the cash value and the death benefit will vary depending on the investment made. You, as the policyholder, will have the ability to choose the investments and how much is invested.
Term life insurance
This can also be referred to as private mortgage insurance. This will help you if you stop paying a loan by helping to pay the cost of the foreclosing. This helps to protect the lender, even though you as the borrower as responsible for paying it.
Mortgage life insurance
This is pretty simple. If you die, then this policy will pay off your mortgage. It helps you by not leaving your loved ones with large debt that you did not repay.
Whole life insurance
As long as you pay your premium then you will have this policy. The premium will be set and there is a guaranteed death benefit. There will also be a guaranteed rate of return.
Permanent life insurance
This will last as long as you live instead of lasting for a set period of time. This is open ended and does not have to be renewed. It does not trouble you as much. The unfortunate part is that this often carries large fees.

Be a Life Insurance Guru

Now that you know these terms, go out and look at good life insurance. No one will be able to take advantage of you because you will know what you are dealing with. Make sure you still compare and do your homework. But at least now you have the knowledge to find the right policy for you.