Glossary

The individual/s designated to receive the death benefit in the event of the insured person’s death

The money that accumulates in your Life Insurance policy while the policy is active. A portion of the premium you pay for the coverage goes in reserve and accumulates on a tax-deferred basis. It offers you the right to withdraw cash from the policy during your lifetime. The feature of building a cash value is offered only under Permanent Life Insurance policies

A type of Term Life Insurance which, in accordance with the insured’s instructions, can be converted into a Whole Life Insurance policy or a Universal Life Insurance policy without evidence of insurability

The sum paid to the beneficiary upon the insured’s death irrespective of the cause of death

Evidence of Insurability

Proof of a person’s condition and health under which an insurance company grants an insurance policy

The amount indicated in a Life Insurance policy which will be paid out to the beneficiaries in the event of the insured’s death. The Face Value does not include any of the additional payments acquired under special provisions in the policy

The person whose life is subject to Life Insurance coverage

The termination of the Life Insurance policy due to non-payment of the regular premiums or, in the case of a permanent Life Insurance plan, due to the depletion of the cash value below the fixed limit

A type of Term Life Insurance under which the premium remains the same from year to year

The insured person or an individual, a company or a trust with an insurable interest in the insured person

A form of Life Insurance that is different to Term Life Insurance types as it has a feature of accumulating a cash value. The main Permanent Life Insurance types are Whole Life, Universal Life, Variable Life Insurance and Variable Universal Life Insurance

An administrative fee which is incorporated in your premium payment and is regularly subtracted from it in order to cover the company’s expenses toward your policy

A loan that the policy holder takes against the cash value of a policy. The option of taking a loan is a specific feature of policies which allow a cash value to build up

The person who has purchased a Life Insurance policy and pays the premiums to keep it in effect. It is usually the insured, but in some cases it can also be a relative of the insured or a partner

A regular payment to an insurance company needed to purchase a Life Insurance policy and to keep it in force