Accelerated Death Benefit: a stipulation in a life insurance policy that allows you to receive all or part of the benefits of your policy before you die. These benefits are paid for terminal illnesses.

Accidental death benefit: a provision or rider that pays more (i.e., double) in case you die as a result of an accident. Also called “double indemnity” 

Actuary: an expert trained in the mathematics of insurance who is responsible for the calculation of reserves, premiums, and other values. 

Amendment: an attachment to a policy which changes certain aspects of the life insurance contract. 

Application: a signed request for life insurance giving information about the prospective policyholder. 

Assignment: giving rights and benefits under a life insurance policy to some other entity. 

Beneficiary: the person, persons or entity designated to receive the death benefits from a life insurance policy. 

Broker: a licensed insurance individual representing the insured not a particular company. 

Burial policy: a life insurance policy to cover final funeral costs. 

Cash value: the money that accumulates in a cash value life insurance policy, which can be borrowed from. 

Convertible term insurance: exchanging, at the option of the policyholder, a term life insurance policy for another plan of insurance without providing evidence of insurability (e.g., a current medical report). 

Death benefit: Value of life insurance in case of death, can include cash value of policy as well. 

Declination: the rejection by a life insurance company of a life insurance application. 

Decreasing term: a term life insurance policy in which the death benefit decreases over the life of the policy. 

Disability benefit: a feature of some policies which waives the insurance premiums in the case of disability. 

Dividend: money credited to a policyholder reflecting favorable operations of the company. Can be given back as a return of premiums or put into the cash value of a policy. 

Effective date: the life insurance policy start date. 

Endorsement: an amendment to a policy modifying benefits. 

Endowment: a cash value life insurance policy payable to the policyholder in cash at maturity or to the beneficiary upon death 

Evidence of insurability: statement or proof of a person's continuing positive underwriting state since last review. 

Face value: the actual amount of insurance purchased. This is prior to other variables like loans or double indemnity. 

Family policy: a life insurance policy providing insurance on multiple family members. 

Flexible premium policy: a life insurance policy which the price or duration of payments can be adjusted to meet client goals. 

Fraternal life insurance: life insurance policy for members of fraternal societies. 

Free examination period: "30-day free-look period," it is the time period after a life insurance policy is approved during which you decide to either accept or return the policy. Any premiums are refunded if not accepted.

Grace period: Typically 28 days from last payment due date during which time policy can be reinstated without proving insureability

Group life: Life insurance plans offered through work where the average health of the group is used for deciding pricing. Has no individual rights for insured as the policyowner. 

Guaranteed insurability: option allowing the policyholder to buy additional life insurance unites at specified times, without proving insureability. 

Guaranteed rate: the minimum interest rate paid on the cash value of an insurance policy. 

Illustration: a visual explanation of how the life insurance policy will perform over the life of the policy. It relays both guaranteed and hypothetical options of the contract. 

Incontestable clause: a state imposed limit of up to two years on a company's right to deny a claim based on suicide or material misrepresentation.  

Insured: the person on whose life an insurance policy is issued. 

Irrevocable assignment: an agreement where the policy owner permanently gives ownership to a third party. 

Lapsed policy: a terminated policy due to lack of payment. 

Level premium insurance: a policy in which the payment premiums are guaranteed for the length of the policy. 

Limited payment life insurance: life insurance policy designed to be fully funded by a specific date. Most common is 7-pay policies.  

Loan: borrowing against the accumulated cash value of a life insurance policy. This is deducted from the face value in the case of death. 

Material misrepresentation: a significant misstatement in a life insurance application.

Maturity: the time at which the insurance contract issaid to be fully funded and the policyholder need know longer pay premiums. 

Mortality charge: the charges a company factors into a policy to cover the insurance companies cost associated with death claims. 

Mortality table: statistical model used to estimate the life span of a person based on their circumstances. 

Nonforfeiture options: options a lie insurance policyholder has when discontinuing a cash value policy before maturity. It may be in a cash , or as a policy option such as paid up insurance. 

Nonparticipating insurance: insurance which doesn't pay dividends.  

Paid-up additions: additional life insurance protection purchased with dividends. 

Paid-up life insurance: insurance which requires no further premiums. 

Participating insurance: life insurance which can pay dividends. 

Permanent life: life insurance designed not to expire. 

Policyholder: the entity which owns an individual insurance policy.

Policy reserves: funds held liquid specifically to fulfill a life insurance companies' policy obligations. 

Premium: money paid for life insurance policy coverage. 

Premium waiver provision: an optional rider allowing for the insurance company to pay policy premiums if the policy owner becomes disabled.  

Pre-need contract: a contract that makes it possible to pay your funeral expenses in advance. 

Rated policy: a policy issued at a higher than standard price to cover a person classified as having a greater than-average risk. 

Rating tables: tables life insurance companies use to classify risks

Reinstatement: resuming policy coverage that has lapsed because of nonpayment premium. 

Renewable term: a term policy which guarantees the right to renew life insurance coverage at the end of the term, without evidence of insurability.  

Rider: a written addition to an insurance policy that augments the benefits payable under the policy. Common riders are accelerated death benefits, accidental death benefits, automatic premium loan, guaranteed insurability, and premium waivers. 

Risk: the likelihood of mortality. 

Risk factor: person specific traits effecting mortality

Settlement option: different options a beneficiary can take as payment for a life insurance policy benefit. 

Single premium whole life: whole life insurance where the premium is paid in one lump sum. 

Surrender: termination or cancelation of a life insurance policy before its maturity date. 

Surrender charges: fees that are deducted from the cash value of a life insurance policy if it is cashed in prematurely. 

Term life: temporary life insurance based on mortality coverage for a specified number of years.

Underwriting: the insurance company’s process for determining the insured's risk classification in order to asses premium charges. 

Universal life: the most flexible premium life insurance contract. Can have allowances for cash value growth or not, permanent coverage or not, assumed or guaranteed premiums etc. 

Variable life: a type of universal life policy in which the cash value is placed in a separate account and invested in bonds, money market funds, stocks, and other instructions with the hopes of offsetting insurance premiums. Like any investment has the risk of negative returns. 

Underwriter: a qualified person who evaluates risks based on financial, statistical, and actuarial data in determing insurance coverage.

Waiver of premium: a rider suspending payments in the event of disability.