Life insurance can be a confusing topic to figure out. Here are a few terms that will help you clearly speak the language of life insurance. For more details on these terms or on any other life insurance questions you have, trust the professionals at Cross Creek Insurance serving Hope Hills, NC to meet your needs.
Annuity: This pays out a fixed sum of money to the policyholder at regular intervals
Beneficiary: The person or people are chosen by the policyholder to receive the proceeds from an insurance policy if the insured dies
Death Benefit: Amount of money paid out to a beneficiary after the policyholder dies
Evidence of Insurability: Documentation provided during the application process to prove the health of the insured person.
Face Value: This is the amount of money that will be paid out when the insured dies. For example, if the insured purchases a $100,000 policy, that is the amount that their beneficiaries will receive.
Insured: The person that benefits will be paid out for in the event of their death
Life Insurance: When a policyholder pays premiums to an insurance company, and the insurance company agrees to pay the face value to the beneficiaries upon the insured’s death
Living Benefits: Advance cash payment of part of a policy before the policyholder dies. Provides financial assistance to the insured before their death
Policy Holder: The person who bought or owns the life insurance policy
Term: The amount of time that the policyholder is insured
Underwriter: The person or company that decides if a potential policyholder is insurable
To find out more about life insurance or get a policy, contact the team at Cross Creek Insurance serving Hope Hills, NC today!