Accelerated Living Benefit
A policy rider allowing the policyholder to receive a portion of their life insurance death benefit while still living if diagnosed with a qualifying terminal, chronic, or critical illness.
Actuary
A mathematical professional who analyzes statistical probabilities of mortality, morbidity, and claims to establish state-regulated insurance premiums.
Annuity
A financial contract with an insurance underwriter designed to accumulate tax-deferred funds and provide guaranteed lifetime income streams during retirement.
Beneficiary
The designated individual, family member, or trust legally entitled to receive policy proceeds or death benefits upon the death of the insured.
Benefit Period
The maximum duration of time that an insurance underwriter will pay claims for disability, long term care, or hospital indemnity.
Cash Surrender Value
The accumulated cash equity within a permanent whole life or indexed universal life (IUL) policy available to the policyholder upon surrender or through policy loans.
Coinsurance
The percentage of covered healthcare costs (commonly 20% under Medicare Part B) that the insured must pay after satisfying the annual deductible.
Critical Illness Insurance
Supplemental coverage providing a direct lump-sum cash payout upon verified diagnosis of covered major conditions like heart attack, stroke, or invasive cancer.
Deductible
The fixed out-of-pocket amount an insured person must pay for covered services before their insurance policy begins to contribute.
Excess Charges
The additional amount (up to 15%) that healthcare providers who do not accept Medicare Assignment are legally permitted to charge patients.
Final Expense Insurance
A simplified whole life policy with death benefits usually between $5,000 and $35,000 designed to cover burial, cremation, and immediate family expenses.
Guaranteed Issue
Insurance coverage issued without any medical underwriting, physical exams, or health questionnaires.
HIPAA
The Health Insurance Portability and Accountability Act of 1996 establishing strict national privacy and security standards for protected medical health records.
Indexed Universal Life (IUL)
Permanent life insurance combining death benefit protection with cash value growth credited based on equity market index performance with guaranteed 0% downside protection.
Level Premium
A premium structure guaranteed to remain identical throughout the entire term or lifetime of the policy regardless of aging or health changes.
Medigap (Medicare Supplement)
Standardized private insurance plans (Plan A through Plan N) that pay Original Medicare out-of-pocket cost sharing deductibles and coinsurance.
Policy Rider
An optional legal amendment or endorsement added to an insurance policy that expands or alters coverage benefits.
Term Life Insurance
Pure life insurance protection covering a specific predetermined number of years (10, 15, 20, or 30 years) with level guaranteed rates.
Waiver of Premium
A rider stating that regular monthly premiums will be waived if the insured becomes totally and permanently disabled.