If you aren’t familiar with insurance lingo, there are likely many words used by insurance agents that are downright confusing. This can make it difficult to communicate your policies and coverage with the companies you are working with. InsureWise LLC is here to talk about some of these words that you may not fully understand so that you know what your insurance agent is talking about the next time you have to reach out to them for anything.
Commonly Misunderstood Insurance Words
Like mentioned above, there are several words used in the insurance world that you may not fully understand. We are here today to talk about some of the most common ones.
– Long-Term Life Insurance: This type of insurance comes in handy when you can no longer care for yourself. You may need it in the case of a nursing home, adult day care or home health care costs.
– Premium: This is the cost of your insurance policy. You may have to pay your premium monthly, quarterly, or annually depending on the policy.
– Death Benefit: This is the amount of money that your beneficiaries will receive from your life insurance after you die. There is usually no tax on death benefit money.
– Conversion Right: If you have a term life insurance policy, some companies will let you convert them into permanent life insurance. This is a great way to build personal wealth.
– Insurable Interest: Life insurance policies require you to have an insurable interest in the person holding the policy. This means that you would suffer financially somehow in the case of their death.
– Living Benefits: There are some life insurance policies that provide you with living benefits and don’t require you to die to pay out.
– Preferred Rates: This is a life insurance plan at a lower rate. These are only given to people that have a very low risk of death. There are many aspects of a person’s health that decipher whether or not they are eligible for these rates.
– Rider: This is additional coverage that you can add to your main insurance policy. You specify your exact needs and get benefits for them.
– Permanent Life Insurance: Permanent life insurance policies will pay out death benefits just like other life insurance policies, but it also will provide lifelong protection as long as you pay premiums. It accumulates cash value on a tax-deferred basis. This money can be used to help purchase a home, supplement retirement income and more.
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If you are in need of any type of insurance, you can rely on InsureWise LLC can help you find the right coverage for your specific needs. We know how important insurance policies of all shapes and sizes can be. We will shop around for the best plans that fit into your budget so that you don’t have to think about it. Call us today or CLICK HERE TO fill out this quick quote form.