Insurance Policy Glossary

  • Cash Value – The sum of money the insurance company will pay to the policyholder of a Universal Life Insurance policy in the event his or her policy is voluntarily terminated before its maturity if fully funded or before the insured event occurs. This cash value is the savings component of a Universal Life Insurance policy.
  • Beneficiary – A person or entity named in a Universal Life Insurance policy as the inheritor of asset when the policyholder dies. Named beneficiaries can include a single or multiple persons or entities.
  • Claim – A formal request to an insurance company for a death benefit payment based on the terms of the Universal Life Insurance policy. Insurance claims are reviewed by the company for their validity and then paid out to the beneficiary once approved.
  • Tax-deferred – Describes investment earnings that accumulate tax free in a Universal Life Insurance policy, based on applicable tax regulations, until the policyholder withdraws them. Investment earnings can grow tax-deferred, and the policyholder can benefit separately by waiting until retirement to withdraw these earning when being taxed at a lower rate.
  • Deductible – The amount the policyholder may be required to pay out-of-pocket for expenses before the insurance company will cover the remaining costs of a claim made against a Universal Insurance policy.
    Insurance Policy Glossary
  • Exclusions – Specific situations or reasons defined in a Universal Insurance policy that are grounds for denying payment of the cash value and/or death benefit. Common exclusions often include suicide, acts of war, military service, and hazardous or extreme activities.
  • Limits – The limits in a Universal Insurance policy are the limits of insurance coverage, cash value, or death benefit that is provided by the life insurance policy and paid to the beneficiary in the event his or her policy is voluntarily terminated before its maturity if fully funded or before the insured event occurs.
  • Liability – A claim alleging that one's negligence or inappropriate action resulted in personal or property damage to another party, or a condition or situation of being bound by law to do something that is enforceable in the courts.
  • Premium – Payment to an insurance company to buy a Universal Life Insurance policy and/or to keep it in force. Premiums can include a single premium, a defined period of fixed premium payments, or a flexible premium plan requiring a slightly larger initial payment and offering flexible future premium payment terms.
  • Rider (Endorsement) – A provision in a Universal Life Insurance policy allowing for amendments to its terms and/or coverage, which generally provide a desired benefit to the policyholder and usually result in an additional charge or premium.
  • Directory
    Universal Life Insurance Directory

© 2021 Copyright | InsuranceDirectoryZone.com | All Rights Reserved | Terms of Use | About Us | Privacy Policy | Contact Us