William Penn Life, 2012 (47. évfolyam, 1-12. szám)

2012-07-01 / 7. szám

r~i Moneywise with JeffDeSantes ijv Vi. Life insurance Understanding our terminology helps ensure you get the right coverage for your needs LIFE INSURANCE TERMS can be confusing for those who do not work in the industry. I thought this would be a good time to offer a quick refresher on some common terms that may describe the products you've chosen to help secure you family's future. Fraternal Benefit Society: An organization that provides benefits to members, including insurance, on a not-for-profit basis. William Penn Association is a fraternal benefit society. Cash Value: The money that can build up in a permanent life insurance certificate. This cash value grows on a tax-deferred basis and can be borrowed or cashed in if needed. Cash-Value Certificate: A permanent life insur­ance certificate that offers the potential for cash-value growth and lifelong protection. This contrasts with Term Life Insurance (see below), which accumulates no cash value and expires at the end of the term without value. Types of cash-value insurance include Whole Life, Universal Life and Variable Life. Conversion Privilege: A right contained in some term life insurance certificates that allows you to convert to a cash-value certificate without evidence of insurability. Premium: Your cost of insurance. Your premium is the amount you pay to keep your insurance in force for the specified term or period. »Uv Rider: An attachment or amendment to an insurance certificate, generally one that expands or adds ben­efits (such as Waiver of Premium or Accidental Death Benefit provisions). Term Life Insurance: Term life provides a death benefit only (no cash value) for a specific term, such as one, five, 10 or 20 years, or to a specific age, after which it expires without value. The initial premium is generally lower than cash-value certificates. How­ever, the premium increases at each renewal. Underwriting: The process of evaluating your ap­plication to determine its acceptability as a risk and, if acceptable, the rate you will pay. Whole Life Insurance: A type of cash-value life insurance featuring lifelong coverage, with flexible death benefit and premium amounts, and competi­tive cash-value growth potential. If you do not have a WPA agent, please call the Home Office at I -800-848-7366, ext. 120, and we can assist you in finding an agent who will serve you and your family by offering: • A Review of Your Needs • Life Insurance Protection • Taxed-Deferred Annuities • • Juvenile Insurance Plans • Special Fraternal Benefits • 4 0 July 2012 0 William Penn Life

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