life insurance origins
What follows are some simple explanations of some of the words that are commonly used in the market for life insurance policies and life insurance. Each insurance company might use a slightly different variation on his own policy wording so that these examples are purely there to assist and help and should not be construed as actual legal definition.
Insured for life – The person whose life is insured. If this person dies during the policy that is when the policy will pay
Insured – This is the original owner of the life insurance policy and usually the person who took out policy. For example a wife as "secured" have a life policy on her husband, who would be the "life of the insured
Office Life – This simply means that the insurance company that issued the life insurance policy
Sum Insured – The amount which is payable if the "life the insured dies during the policy period.
Premium – The cost of life insurance policy. Generally described as a certain amount each month
Subscription – This is the process that looked to their insurance company details and decide whether or not the risk and agreed to issue a life insurance policy. This could be a quick and simple process or it may take time and involve the medical reports with the insurance company may imposing certain additional conditions to the policy of
Proposer – This is the person applying for life insurance
Term life insurance policy – Refers to a policy Life insurance that pays the death of the "life of the insured if the person dies within the" term "(period) of the policy. The policy, for example, might work for ten, twenty or twenty-five
The decline in term life policy – Refers to a "long political life term insurance, where the sum insured is reduced to a previously agreed rate. This policy PF type is often used to cover the outstanding balance reduced the reimbursement a mortgage
Policy level term life – Refers to a life insurance policy where the sum assured remains level during the
Life in common – Refers to a life policy that covers not one but two or more 'life insured'. Very often used by couples who appreciate the family would be affected if any of them would die
Critical illness – Refers to a type of coverage to pay the sum insured if the life insured to be diagnosed with the disease to be a "serious illness" one that appears in a pre-agreed list of critical illnesses. For some diseases there is a level established that the disease may have to achieve to be deemed critical. All diseases were defined and agreed on policy. Critical illness can be added as an extension a life policy or is sold as a separate policy
Terminal illness – terminal illness refers to an extension of life insurance. Under terminal illness policy will pay if the life insured is diagnosed with a terminal illness and is not expected to survive for a period of months. This extension coverage is usually 18 months before the expiry of the current cover term life expires.
About the Author:
Luke Ashworth writes for Protected.co.uk, offering views on life insurance in the UK, visit www.protected.co.uk today and compare life insurance plans in minutes.
Article Source: ArticlesBase.com – Some Common Words Used in Life Insurance
