Glossary

Beneficiary:

The beneficiary is the person or people chosen by the policy owner that will receive the proceeds from the insured person's life insurance plan.

Cash Value:

This is the amount of money available to the policy owner of a life insurance plan should they decide to terminate the insurance policy before their death. This usually does not refer to term life insurance plans.

Dividend:

The dividend is an amount of money given back to a policy owner who has paid a surplus on top of the premium. This is usually due to differences in anticipated and actual costs of operating expenses or claims.

Face Amount:

The face amount is the amount of money that will be paid to the beneficiary in the case of the policy owner's death.

Insurability:

This refers to how acceptable an applicant is to a life insurance policy. Applicants are more or less acceptable based on many factors, such as current health and age.

Premium:

The premium refers to the payments a policy owner makes to the insurance provider to buy a policy.

Policy Owner:

This is simply the person who owns the life insurance policy.

Single Premium Policy:

A single premium policy allows one to pay for their life insurance policy in a single premium, rather than making multiple payments over time.

Surrender:

To surrender is to give up or terminate one's life insurance policy. If you have any questions, please visit our FAQ page.