Life Insurance Definitions

There are lots of important definitions with all insurance, but especially life insurance.   Life insurance definitions are definitions about various aspects of the insurance industry.

Why Should Consumers Read Life Insurance Definitions?

Consumers should be aware of the terms being used so that they understand what they may be purchasing.

Do Insurance Definitions Really Matter:

They certainly matter as it relates to the life insurance contract that you may be buying, so yes, life insurance definitions matter.

How to Use these Definitions:

Learn what you are buying before signing any paperwork.

Where does WholeVsTerm Get their life insurance definitions from?

It depends, in general we pull our various definitions from trust sources, such as state regulators or financial outfits – we generally attempt to cite those sources.  On rare occasion, where we see fit, we have created our own, by reviewing others and enhancing them.  We also attempt to note this for you to see.

Always consider getting your definitions from an independent source such as Wikipedia or Investopedia or a (your) state insurance regulator.

Ask lots of questions.

Do Not Sign Anything you Don’t Understand.

Annual Premium

Written by Scott W Johnson

What is an Annual Premium? Sometimes also called an Annualized premium, it is a mode of payment for various forms of insurance, including life insurance. There exists differences with the modes of premium payments allowed with different types of insurance, such as business insurance and personal property insurance. In the world of life insurance, the annual and monthly payment modes are typically the most popular option.

Children’s Life Insurance Rider

Written by Scott W Johnson

A children’s life insurance rider is an endorsement added to a Parent’s life insurance policy. The costs for these policies often do not make good financial sense. In general child riders make more sense than true whole life insurance kiddies policies, but their somewhat high cost is not necessarily warranted. Most kiddie policy riders include coverage for all the children in a given family. The debate about children needing life insurance is not necessarily settled., WvT has some opinions on this discussion.

Convertible Term Life Insurance

Written by Scott W Johnson

Convertible Term Life Insurance is a form of life insurance that allows you to convert it at a later date usually with no further underwriting. There are all sorts of other considerations and terms that must be met. Why convertibles are such a good idea depend on what type of term (soon to be whole life) buyer you are. We find that most clients that are good fits for these products are one of two individuals – Read about these types of people and consider Convertible Terms.

Participating Whole Life Insurance

Written by Scott W Johnson

In this short article we will explain exactly what participating life insurance is, who provides it, common and historical rates of return, and answer some simple questions. Part Whole Life policies are a great thing for those consumers that can afford to pay its high annual premium each and every year. Lastly we will discuss the one backdoor method to gaining access to this terrific product.

The person who receives financial protection from a life insurance plan is called

Written by Scott W Johnson

A simple and straightforward guide on Life Insurance Beneficiaries. A beneficiary is typically the party to a life insurance contract that can easily be changed. Learn about best practices, detailed considerations, and a what not to do when considering a life insurance beneficiary. Whole Vs Term provides you a full list of potential life insurance beneficiary options with common examples of choices.

Free Look Provision

Written by Scott W Johnson

All about the Free Look Provision. What it does and How it helps. The Free look provision is a consumer friendly provision that is in life insurance and annuities which allow consumers a certain grace period to return the policy. The specifics of free look periods are very state specific as each state insurance regulator may have different rules. The Free look period is a great tool for American consumers.

Backdoor Roth IRA

Written by Scott W Johnson

The Backdoor Roth IRA: Should you consider Accessing Roth IRAs through the backdoor? In our guest post – Mark Bourguignon, the founder of Ascend Wealth Management, will explain the differences between regular Roth IRAs. He will also discuss a little known financial process known as the backdoor Roth IRA for high income earning families.

Misstatement of Age Provision

Written by Scott W Johnson

The misstatement of age provision is an important consumer protection tool in the world of life insurance. Learn about how a somewhat common mistake can prevent an insurance tragedy.

How long does the coverage normally remain on a limited-pay life policy?

Written by Scott W Johnson

Learn about limited pay life insurance and how long this form of whole life insurance lasts. Limited pay may be your best option if you want to get the most bang for your buck with permanent insurance.

The Incontestability Clause

Written by Scott W Johnson

The Incontestability Clause – is a specific time period within life insurance policies that assists consumers after generally about two years. This important component of most life insurance policies is a consumer success story for buyers of life policies. Read about what protections it offers you and what is will not protect you from.