Contestable -
This refers to the insurance company's right to contest information provided by the policyowner in the application for insurance. |
Contestable Period -
This is the period of time (usually two years) the insurance company has to make any contests about the policyowner's application. |
Contingent Beneficiary -
A secondary or alternate beneficiary. Also, see Beneficiary. |
Conversion Privilege -
Term life insurance policies and group life policies normally contain this privilege that allows you to convert your term
policy to a cash value policy during the term or upon separation from service. |
Death Benefit -
Life insurance policy proceeds that are paid to the beneficiary upon proof of death of the insured. |
Decreasing Term Insurance -
This is a form of Term Insurance in which the premium remains level but the benefit decreases during the course of the
term. This type of term insurance is usually used to protect a mortgage. |
Endorsement -
Also known as a rider, this is an attachment to the insurance policy that changes it in some way. |
Endow -
This term is used with Cash Value Life Insurance policies to describe that point in time when the cash value equals the
face value of the policy. Most whole life policies endow when the insured reaches age 100. |
Estate -
Total assets owned by a person at the time of their death. |
Evidence of Insurability -
Proof that you can be insured according to the insurance company's policies. This includes statements made on the insurance
application and also may include a medical examination. |
Exclusion -
A policy provision that states benefits are NOT payable under circumstances, such as war. |
Face Amount -
This refers to the initial amount of the death benefit. |
Fixed Period Option -
This is a settlement option chosen by the owner of the insurance policy that pays the death proceeds to the beneficiary over
a stated period of time, such as ten years. |
Flexible Premium Policy -
Universal Life and Variable Life insurance policies feature this option that allows the policyowner to pay more or less
than the stated premium. |
Grace Period -
This is a period of time after the premium due date during which the insurance company will accept payment before cancelling
the policy. |
