Glossary of Terms

Beneficiary
The person(s), named in the policy, who is designated to receive the life insurance benefits upon the death of the primary insured.

Cash Value
The amount that is available in cash for loans and that may be available for withdrawals.

Death Benefit(s)
The amount that will be paid to beneficiaries in the event of death.

Face Amount
The amount that will be paid to beneficiaries in the event of death.

Insured
The person on whose life the policy is issued.

Level Premium
Once a life insurance policy is issued, the premium rate due remains the same for the life of the policy.

Policy Loan
An amount which may be borrowed from a life insurance policy's available cash value. Interest is charged on the loan amount. If the loaned amount is not repaid, the loan plus accruing interest may exceed the remaining cash value of the policy causing its termination. Additionally, if the loaned amount is not repaid and the policy is in force at the Insured's death, the death benefit will be reduced by the amount of the outstanding loan.

Policyowner
The person who owns a life insurance policy.

Premiums
Payments made to the insurance company to buy a policy and to keep it in force.

Whole Life Insurance
A permanent life insurance policy that is designed to remain in force until the Insured's death and which accrues a cash value.