Glossary of Life Insurance Terminology

A

Accidental Death and Dismemberment Insurance (AD&D) – A type of life insurance that pays out benefits in the event of accidental death or severe injury.

F

Final Expense Insurance – A type of life insurance designed to cover funeral and burial expenses.


G

Group Life Insurance – A type of life insurance that provides coverage to a group of people under a single contract, often offered through employers.

I

Indexed Universal Life Insurance – A type of universal life insurance that offers a cash value component tied to the performance of a stock market index.

M

Mortgage Protection Insurance – A type of life insurance that helps pay off a mortgage in the event of the insured person’s death.

S

Survivorship Life Insurance – A type of life insurance that covers two individuals and pays out the death benefit after both insured persons have passed away.

T

Term Life Insurance – A type of life insurance that provides coverage for a specific term or period.

U

Universal Life Insurance – A type of life insurance that combines a death benefit with a savings component.

V

Variable Life Insurance – A type of life insurance that allows policyholders to invest their premiums in various investment options.

W

Whole Life Insurance – A type of life insurance that provides coverage for the entire lifetime of the insured person.

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