The person(s) named in the policy to receive the life insurance proceeds upon the death of the insured.

The amount that is available in cash for loans and that may be available for withdrawals. Accessing Cash Surrender Value may reduce the death benefit and may increase the risk of lapse.

Term insurance which can be exchanged (converted), at the option of the policy owner and without evidence of insurability, for a permanent insurance policy.

The amount stated on the face of the policy that will be paid in case of death. It does not include additional amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends.

Life insurance for which the premium remains the same from year to year. The premium is normally more than the actual cost of protection during the earlier years of the policy and less than the actual cost in the later years. The building of a reserve is a natural result of level premiums. The payments in the early years, together with the interest that is to be earned, serves to balance out the underpayment of the later years.

A loan made by a life insurance company from its general funds to a policy owner on the security of the cash value of a policy.

A life insurance policy that is eligible for the payment of dividends by the insurer (see also Dividend.)

Any form of life insurance except term; generally insurance that builds up a cash value, such as whole life.

The person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation.

Term insurance which can be renewed at the end of the term, at the option of the policy owner and without evidence of insurability, for a limited number of successive terms. The rates generally increase at each renewal as the age of the insured increases.

Term insurance is a basic type of insurance coverage that you can buy, as the name implies, for a specified period of time. Term insurance is strictly insurance, and has no cash value. It also offers the lowest premiums. When a term life insurance policy expires, you must renew it to continue the coverage, and premiums increase in proportion to your age.

If you have long-term needs - for example, if you require life-long protection for premature death, retirement income or cash to settle your estate - then you should consider cash value insurance. Likewise, if you need protection for a specified period of time, perhaps to pay off a loan or mortgage in the event of your death, term insurance may be the right choice for you.

The appropriate amount of life insurance varies from person to person, depending upon your individual needs and your family's lifestyle. To determine how much coverage you need, multiply your annual income by eight or tally the assets that will pass to your heirs, such as PF, savings, real estate, and other benefits. The best way to establish a precise and adequate amount for life insurance coverage is to consult with your insurance representative.

" Convertible" and "renewable" are provisions in a term insurance policy. With a convertible policy, the policyowner has the option to exchange the policy for another insurance plan without evidence of insurability. However, term policies can only be converted to cash value policies. With a renewable policy, the policyowner can renew (or extend) the policy at the end of its term without evidence of insurability. When a policy includes both provisions, they continue until specified ages and then stop. Premium rates increase at each renewal, based on the insured's age.

Term insurance offers the lowest premium rates. However, each time a term policy is renewed, premiums increase and continue to do so rapidly over the years. Also, term insurance does not continue over the insured's entire lifetime. Whole life, universal life and extra value life can be less costly over the long term and also provide the advantage of cash value.

If you pay the premium within the grace period following the due date, you will not be subject to a penalty or loss of coverage.

Your policy can lapse or terminate when a premium is not paid by the end of the grace period, if the policy has no cash value. If the policy has adequate cash value, you can borrow against it to pay the premium and maintain your insurance. You could also use one of the policy's non-forteiture options which allow you to: (1) surrender your policy and collect its cash value; (2) purchase a reduced amount of paid-up cash value life insurance

Yes. If you provide the insurer with evidence or insurability and pay all back-premiums plus interest. This is called "reinstatement" and can occur anytime within time defined in the policy from the date your policy lapses. The advantages of reinstating a lapsed policy are: (1) you pay the original premium rate; (2) the cash value of the original policy will be greater than that of a newly issued policy

Cash value life insurance policies can be used to obtain a loan. The loan amount and time at which you can borrow depend on the amount and type of insurance you have, as well as your age. Guaranteed loan values are outlined in the policy contract.

Your policy's cash value does not belong to you until you surrender the policy and relinquish its protection. Until then, the cash value is part of the insurer's investment portfolio, which enables the insurer to fulfill obligations to policy owners. These assets are invested and earnings keep premiums low and increase dividends. Therefore, all loans including policyowner loans, must earn interest.

Disability Waiver of Premium provides for payment of premiums by the insurer in the event that the insured becomes disabled. The Accidental Death Benefit provides for payment of an additional benefit if the insured dies in an accident. You can also add a Critical Illness rider to your policy.

You always have the option to change your beneficiaries. Review your beneficiary designation periodically to remain secure about the distribution of you policy's proceeds.

No. You can designate unrelated individuals, companies, trusts or charitable organizations as beneficiaries.

Inflation typically raises interest rates and, consequently, your rates of return. Like other investments, funds placed in cash value, dividend-paying insurance policies should reflect increased earning rates.

An annuity is a contract that provides guaranteed lifetime income to an annuitant (the person receiving the income), usually after retirement. An individual purchases an annuity either through a lump-sum payment or through regular installments. At a certain age, the annuitant receives regular payments for life.

Yes. If you were to die, your spouse would have pay for childcare and housekeeping services with household income. Life insurance is a wise option that lessens the financial strain on your family.

It may be wise for children to have cash-value policies in their names since they can secure relatively low premium rates, which will not increase as they age. Also, a Guaranteed Insurability benefit can be added to the policy so the child can purchase insurance in the future. The need to accumulate funds, family medical history and financial circumstances are important considerations that help to determine whether life insurance makes sense for your children.