Life Insurance Vocabulary

Chapters 40 and 41
STUDY
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Beneficiary
The person named in an insurance policy to recieve the insurance benefits
Cash Value
The ammount of money recieved should the policyholder decide to give up the protection provided by a policy
Decreasing Term Insurance
Term life insurance on which the ammount of protection gradually becomes smaller, but the premiums remain the same during the term
Face Value
The ammount of insurance that was originally purchased and will be paid paid upon death of the insured
Group Life Insurance
Life insurance that covers a group of people who are usually employed by the same company or part of the same organization
Insurable Interest
A financial interest in the continued life of a person - insurance on another person
Level Term Insurance
Term insurance on which the ammount of protections and premiums remains the same
Limited-Payment Policies
A whole life policy intended to be paid off in a certain number of years
Renewable Policy
A term life insurance policy that allows the policyholder to continue or renew the policy without taking a physical exam
Term Life Insurance
A life insurance policy that protects against loos of life over a definate time period
Whole Life Insurance
Permanent life insurance that extends over the whole life of the person
Basic Health Coverage
A combination of regular, medical, and surgical insurance
Coinsurance Clause
A provision in which the insured pays a certain percentage of the cost above the deductable ammount
Comprehensive Medical Policy
Insurance that combines hospital, regular, surgical, and major medical insurance into one policy
Disability Income Insurance
Insurance that protects a worker against the loss of income because of a long illness or accident
Health Maintenence Organizations
Organizations that provide complete health care for their members for a fixed monthly rate
Major Medical Insurance
Insurance that provides protection against the cost of serious injury or illness
Medicaid
Medical expense assistance provided by state governments to families in need
Medicare
Insurance provided by the government to people 65 or older
Preferred Provider Organization
A group of physicians, a clinic, or a hospital that works with an employer to provide coverage for employees
Regular Medical Insurance
Insurance that pays for non-surgical care
Worker's Compensation
Insurance that provides benefits to people hurt or killed on the job