Glossary of Terms
Terms may not apply to all policies.
| Beneficiary |
The person or organization you designate to receive the death benefit. |
| Cash value |
The portion of a permanent life insurance premium that grows over time and can be available for loans or withdrawals. Your policy is term insurance, so it does not accumulate cash value. |
| Death benefit |
The payment a beneficiary will receive upon your death. |
| Face amount |
This is the amount of death benefit at the time of issue. |
| Grace period |
The period of time you have, following your premium due date, to make a payment and avoid cancellation. |
| In force |
A term used to mean the policy's coverage is in effect. |
| Insured |
The person whose life is covered by the policy purchased. |
| Owner |
The same as the insured if no other person is named in the application as the owner. The owner controls the policy during the lifetime of the insured.
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| Rider |
Benefits or features added to your policy. They may be optional or available for an additional cost. |