Life insurance terms are sometimes confusing since it may differ depending on your service provider. The term and conditions provided by a life insurance company are important aspects for you to study. Without the knowledge about this matter, it will be difficult for you to understand the concepts and policies under the life insurance conditions that are held in front of you.
The following are just some of the terms and conditions of life insurance that you will encounter along the way.
- Proof of Insurability
As an evidence for you to qualify for this particular term, the life insurance company will rely on your medical information for that one. Along with the information are other essential data regarding your credit and record and financial history. Your service provider needs to determine by all means if you are indeed applicable for a life insurance benefit.
- Exchangeable Life Insurance Term
This policy in life insurance offers you the gateway to convert to another kind of life insurance term like a whole life insurance policy. With this, you don’t need to worry about your medical information unlike on the previous term because you don’t have to be medically qualified for this one.
- Accelerated Benefits
This life insurance term allows a person to claim a portion of his death benefit ahead of time if the person has been diagnosed with a terminal ailment. The term is also applicable for someone who is enduringly limited for an occupation in a nursing home. With accelerated benefits, an elderly or an aging person can take advantage on his hard earned money earlier of time even before his retirement age under some conditions.
- Grace Period
This particular life insurance term is the period of time allotted for someone to pay the premium without penalty. Once the person exceeds to that specific period, the life insurance company will have to put restrictions on the person to use the benefits provided by the company. Usually, the preferable grace period is a total 30 days but it will always depend on your service provider.
- Rate Up Policy
If there is a premium amount of which you need to pay for a particular amount for your life insurance benefits, the rate up policy on the hand is issued in higher amount compared to the normal or standard value. This is held because of the increase in the risk associated in thousands of health insurance as well with some employment categories.
- Paid Up Insurance
A paid up insurance is an insurance policy that doesn’t require for more premium expenses. In this policy, you are required to make payments for the premium until the allotted time or date. Once you exceed to the specific date, that’s the time that the premium will be termed as paid up but it is still active. The insurance company has no hold of it, only the consumer can cancel the policy if he wants to.
There are several life insurance terms and policies that you need to be familiar with. In order to get the best out of your life insurance benefits, you need to learn about all of those policies.
