- Beneficiary. The person or entity who will receive the benefit amount when the insured passes away.
- Cash value. Money accumulated by paying premiums on a permanent insurance policy. The money can be accessed through loans and partial withdrawals to meet a variety of needs, such as paying for unexpected expenses or college tuition. The money grows tax-deferred.
- Convertibility. Some carriers permit an upgrade from a temporary term life policy to a permanent one if your life changes. You can do this without having to undergo additional medical exams.
- Dividend. An eligible policyholder receives a portion of the company’s divisible surplus. Mutual companies have a divisible surplus after paying claims, expenses, and setting aside reserves for future claims and benefits. Dividends can increase your cash value and coverage. However, they’re not guaranteed.
- Rider. You can select this optional coverage to further tailor your policy to make it more customizable. It’s generally available for purchase.
- Term life insurance. An insurance policy providing a death benefit for a fixed period of time, usually between five and thirty years.
- Whole, universal, and variable universal life. A life insurance policy that protects over a long period of time.
Chapters - Due Life Insurance Plan
