Life Insurance Lowdown

Many of us worry ourselves silly about the type of insurance that will be best suited to our needs. And the growing number of options isn’t making things any easier. So, while we are trying to get the best bargain for ourselves, it is a good idea to arm ourselves with certain insurance terms that a consumer must know.

Agent: An agent is an authorized representative of an insurance company. This person sells and services your insurance contracts.

Accelerated Benefits Rider: Sometimes life insurance policies have various types of riders one of which is the accelerated benefits rider. This rider allows you to make an early payment of some portion of the policy’s face amount in case you suffer from a terminal illness or injury.

Another type of rider is the accidental death benefit rider: this rider provides for the payment of an additional cash benefit related to the face amount of the base policy in case death occurs by accidental means.

Annually Renewable Term: Is a form of renewable term insurance that provides coverage for one year and allows the policy owner to renew his or her coverage each year, without evidence of insurability.

‘Attained Age’ is what the insurance companies call your current age. Your attained age is one of the factors life insurance companies use to determine your premiums.

Backdating: Don’t worry, there is nothing illegal about this strategy. Here, a procedure for making the effective date of a policy earlier than the application date. Backdating is often used to make the age of the consumer at issue lower than it actually was. This was done to get lower premium.

Of course, there are many more and I shall enumerate some more very soon