William Penn Life, 2014 (49. évfolyam, 1-12. szám)
2014-08-01 / 8. szám
Moneywise with Jeff DeSantes Life insurance lingc LIFE INSURANCE TERMS can be confusing for those whc do not work in the industry. I thought it would be a great time to give a quick refresher on some common terms that may describe the product(s) you've chosen to help secure you family's future. I hope these terms and their definitions will help you navigate the sometimes confusing world of insurance. • Beneficiary - The person (or persons) you designate to receive the death benefit from your life insurance certificate after your death. Your beneficiary may also be a legal entity, such as a charitable organization or church. • Cash Value - The money that is saved up in a permanent life insurance certificate. Also known as "cash surrender value," this is the amount of money you would receive should you terminate—or "surrender"—your certificate before you die. Cash value grows on a taxdeferred basis and can be borrowed as a loan against your certificate. • 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, 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 your certificate to a cash value certificate without evidence of insurability. • Dividend - The additional monetary value you can earn through a participating whole life insurance policy. You have several options on what to do with your dividends. Dividends can be: (1) paid to you as cash; (2) used toward paying your premiums; (3) left with your insurance company to earn more interest; or (4) used to pay for additional insurance coverage. • Evidence of Insurability - Proof of a person's condition under which an insurance company grants an insurance policy. • Face Amount - The amount of money indicated in your life insurance certificate which will be paid out to your selected beneficiaries in the event of your death. • 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. • Policy Fee - An administrative fee which is incorporated in your premium payment. • Premium - Your cost of insurance. Your premium is the amount you pay to keep your insurance in force for the specified term or period. • 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 - An insurance certificate that provides a death benefit only (no cash value) for a specific length of time—such as one, five, 10 or 20 years—or up to a specific age, after which the certificate 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 offering lifelong coverage, with flexible death benefit and premium amounts, and competitive cash value growth potential. These are just some of the basic terms you'll encounter when investigating life insurance. If you still are unsure about what these terms mean or how they can affect you and your family, then call your local WPA representative, who will be happy to answer any questions you may have and help you fold the right insurance to fit your and your family's needs. □ Illustration © Can Stock Photo Inc./mybaitshop ,/7;OnCy cash 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 • Tax-Deferred Annuities • • Juvenile Insurance Plans • Special Fraternal Benefits • 4 0 August 2014 0 William Penn Life
