Life Insurance Terms You Need To Know

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Life Insurance Terms

Choosing the right life insurance plan is the best way to make sure that your loved ones have the financial protection that they need when you pass away. With all the specialty terms and insurance jargon that is included in your life insurance policy, it can be easy to get confused about your coverage. Make sure you fully understand these life insurance terms so that you can fully understand your life insurance coverage.

  • The beneficiary of your policy is the person who will receive the payout of your policy after you pass away.
  • The death benefit of your life insurance policy is the payout that your beneficiaries will receive when you are gone.
  • Certain life insurance policies, including whole life insurance, offer a cash value or surrender value option which will allow you to forfeit the death benefit of your policy to immediate cash.
  • The contestability clause of your policy will name specific situations in which your policy will be voided by your life insurance company, leading to a refusal to provide the death benefit to your beneficiaries.
  • Your grace period is the amount of time that you have to make a late premium payment to your insurance company before they cancel your policy.
  • A paid-up insurance policy will no longer require premium payments, but will still provide a death benefit for your beneficiaries.
  • Survivorship life insurance will provide coverage for two people and will only provide a death benefit when both individuals have passed away.

For help finding the right life insurance policy, contact the insurance professionals at Martplan Insurance Agency in La Habra, California. As an independent insurance agency, we will work with you to make sure that you have the protection that you deserve, all at the right price to fit your needs.