Coverage for bodily injury and/or death resulting from accidental means (other than natural causes).
Definition, explanation, and discussion around the term 'Death Benefit,' including examples, FAQs, related terms, online resources, and suggested books for further readings.
The face amount, also known as the face value or coverage amount, is the sum of insurance provided by a policy payable at death or maturity.
Indexed life insurance is a type of policy whose face value varies according to a prescribed index of prices, providing a death benefit that adjusts based on indices like the Consumer Price Index (CPI).
Life Assurance is an insurance policy that pays a specified amount of money on the death of the life assured or, in the case of an endowment assurance policy, on the death of the life assured or at the end of an agreed period, whichever is the earlier.
Life insurance is a policy that pays a death benefit to beneficiaries upon the insured's death in return for premiums.
A Life Insurance Settlement is the sale of an existing life insurance policy to a third party for a lump sum that is greater than the policy's cash surrender value but less than its net death benefit.
A policy loan is a loan issued by an insurance company that is secured by the cash surrender value of a life insurance policy. The amount available for such a loan is contingent upon various factors.
The principal sum refers to the core amount of a debt or financial obligation. In finance, it is the initial amount of money borrowed without interest. In insurance, it designates the amount specified to be paid to the beneficiary under the policy, such as the death benefit.
Coverage that stays effective for a specified, limited period. If the insured dies within that period, the beneficiary receives the death payments. If the insured survives the term, the policy ends and no payment is made.
Variable Life Insurance is a type of life insurance policy where the face value and death benefit can fluctuate based on the performance of investments chosen by the policyholder. The value can increase or decrease but never falls below a guaranteed minimum.
