Here are some key terms to understand when it comes to life insurance:
Policy holder: The person who owns the life insurance policy and pays the premiums.
Insured: The individual whose life is protected by a life insurance policy. This is usually the policy holder, but it can also be someone else, such as a spouse or child.
Beneficiary: The person or people designated to receive the death benefit upon the death of the insured. This can be a spouse, child, parent, or other relative.
The amount of money paid to the beneficiary upon the death of the insured.
Premium: The amount of money the policy holder pays to the insurer to maintain the life insurance policy. You can pay premiums on a monthly, quarterly, or annual basis.
Term: The length of time for which a term life insurance policy provides coverage.
Cash value: The amount of money that accumulates within a permanent life insurance policy over time. Policy holders can borrow against or withdraw the cash value of the policy.
Surrender value: The amount of money that a policy holder can receive if they decide to cancel a permanent life insurance policy before it matures. This is typically less than the cash value of the policy.
It is important to carefully review the terms and conditions of your life insurance policy to understand exactly how it works and what is covered.