life and health insUrance

Here is a list ofsome insurance termsthat you may encounter as you look into life and health insurance.
Term Definition
Rider Clause or term added to your insurance policy to provide protection, for
an additional cost, for risks not covered in a basic policy. Also known as
an endorsement.
Check with your insurer to find out what is and is not covered by your
policy and for what risks you might need extra coverage.
Risk Probability that an insured event, such as loss, injury or death, will happen
while your policy is in effect.
Term Definition
Beneficiary or
beneficiaries
The person(s) named on the life insurance policy who will receive the
death benefit when you die. For example, you may want to name your
spouse or child as the beneficiary of your life insurance policy.
Beneficiaries may be revocable or irrevocable.
If the beneficiary is revocable, the policy owner can change the beneficiary
at any time without advising the beneficiary.
If the beneficiary is irrevocable, the policy owner must have the irrevocable
beneficiary’s written permission before making beneficiary changes.
Benefit Amount that the insurer will pay you if the insurer accepts your claim.
Cash value Cash amount that the life insurer pays to the policyholder when a life
insurance policy is cancelled, or that is added to the face value of the
insurance policy and paid to the beneficiary upon the insured’s death.
It may also be possible to take out a loan against the cash value of the policy.
This term is normally used with a permanent life insurance policy.

Life insurance
Life insurance can provide a financial payment to your family and loved ones upon your death.When
you purchase a life insurance policy, you name a beneficiary who will receive the death benefit specified
in the policy upon your death. You can name either a revocable or irrevocable beneficiary. Regardless
of the type of beneficiary you name, your beneficiary will receive the death benefit tax-free.
You may also choose to leave the money to your estate or to a trust. However, if you leave the death
benefit to an estate or trust, it will be subject to taxes when the estate is settled.
There are two main types of life insurance: term and permanent.
Term life insurance provides coverage if you die within a specific period of time, unless you do not
pay your premium.
Term life insurance premiums are generally less expensive than permanent life insurance premiums.

Health insurance
There is a variety of health insurance products available that could help you:
• pay for services that your regular health care plan does not cover
• supplement your income if you suffer a major illness or severe injury
• pay for your medical expenses if you become ill while on vacation.
Check your policy to find out if there is a deductible or if the amount payable is limited to a maximum
percentage of the overall claim, or a maximum annual amount..