What Is a Beneficiary of Life Insurance?
The most frequently used term used when discussing term life insurance would be “beneficiary.” The term refers to the individual or people who will get the death benefit if the insured dies. Most people name their family members their beneficiaries, but a “beneficiary” can come from any individual and even include charitable organizations.
What Is Contingent in the Life Insurance Industry?
The term “Contingent” means that something can only occur based on particular situations and has the same significance regarding life insurance. Typically it is used alongside beneficiaries, as they get referred to as “contingent beneficiaries.” The contingent beneficiary will be entitled to insurance benefits if the primary beneficiary passes away.
What Is Term Life Insurance?
Term Life Insurance is an affordable type of life insurance. Term plans typically cover a large amount of debt and are intended to replace income to the point of retirement. However, it gets canceled after a certain period.
What Is Whole Life Insurance?
Whole life insurance is what you’d anticipate from the name: it’s life insurance that protects you for the rest of your life. These policies payout regardless of the time you die when you’ve set up an insurance policy.
As we age, staying healthy becomes increasingly challenging, and individuals are consequently vulnerable to more health problems. It is why whole-term life insurance policies are best set up in the early years of life to ensure they’re affordable.
What Is Critical Illness Insurance?
Critical illness insurance provides a single tax-free payment for 30 days after being diagnosed with a severe disease. Approximately 75% of the claims are cancer-related.
It’s up to you how you’d prefer to use the benefits. For instance, they can put the money to use in the pursuit of healing by providing therapies and treatments that get included in government programs. Additionally, it might cover family travel expenses or provide family members time off work to spend with the ill person.
What Is a Policyholder in Life Insurance?
The policyholder is the individual who owns this life insurance coverage. They are responsible for paying the policy and determining the insurance policy’s terms. They also have total control over any modifications to the policy, even though they’re not the ones who are insured.
The only situation in which the policyholder does not have complete control is if the agreement gets determined through an employment contract.
What Are the Life Insurance Premiums?
One of the essential terms in the life insurance industry is “premiums.” This term refers to the cash you pay your insurance company to cover their life insurance.
- In terms of term life insurance policies, the premiums pay the administration costs and the life insurance approach.
- The premiums paid for the cash value and the factors above with whole life insurance.
If you’re unsure about any clauses of your insurance policies and require clarification, speak to your insurance company to help you explain each and how it applies to the procedure.
Are you ready to provide a layer of security to those you value in your life? Contact Ottawa Life Insurance today at (613) 454-1424 or email at info@ottawa-lifeinsurance.ca to get the details on a life insurance policy that can work for you!
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