| A | B |
|---|
| beneficiary | A group or individual selected to receive the assets of a person when he/she dies |
| insurance benefits | Assets or gain received by having an insurance policy |
| face value | The amount of money payable to a beneficiary as a death benefit when an insured dies |
| maturity | The length of time it takes an insurance policy to reach it full value |
| Cash value | The amount of money a whole life policyholder would receive if the policy were surrendered before death or maturity |
| term insurance | A type of insurance that provides coverage for a specific period of time without investment benefits |
| level term | premiums and death benefits stay the same for the life of the policy |
| decreasing term | premiums stay the same but the benefits decrease over the life of the policy e.g. for home mortgage |
| renewable term | the insured person can renew the policy can renew the policy without taking a physical |
| convertible term | the insured person can change the policy from convertible to permanent without taking a physical, tends to be more expensive |
| permanent life | (also called cash value life insurance) provides coverage teh person's entire life and includes an investment component |
| whole life insurance | a type of insurance that provides coverage coverage for a whole lifetime and grows in face value as premiums and cash accumulate |
| limited payment life | coverage for entire life but premiums are higher than whole life because premiums are paid for a set number of years or until a set age |
| universal life | allows adjustments of premium, face value, and level of protection |
| variable life | premiums are fixed, but face amount varies with investment results |
