What is Life Insurance?
Life Insurance is a contract between you and the life insurance company that provides a specific sum of money, the face amount, usually called a death benefit, which will be paid to the person (beneficiary) of your choice in the event of your death.
Why do I need Life Insurance?
Life Insurance is needed to replace the income you earn for your family that would be lost at your death, funeral expenses, expenses of last illness, money for your children's future education, money to pay off a home mortgage, money to pay estate taxes, and family needs.
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What are the Advantages of Life Insurance?
With Life Insurance your family's financial needs and requirements are taken care of should you die. The life insurance death benefit is paid to directly to your family income tax free. There is no probate on life insurance which saves time and money.
When should I review my Life Insurance?
Life Insurance should be reviewed with life's changing circumstances such as: when you get married, birth of a child, when purchasing a new home, when getting a large loan, when starting a business, when you lose benefits due to a change in jobs, to pay estate taxes, parents who have children with special needs.
What is an Accidental Death Benefit?
An Accidental Death Benefit is a provision that can be added to a life insurance policy for an additional premium that pays an additional benefit (ADB) in case of death that results from an accident. This provision is often called double indemnity.
What is an Age Change?
An Age Change is the date on which an insured's age changes. In most life insurance contracts this is the date 6 months after the insured's birthday. The actual age change date depends on whether the insurer uses an age nearest birthday or age last birthday in determining premium rates.
What is Adjustable Life Insurance?
An Adjustable Life Insurance policy is life insurance plan that lets the policy holder change the plan of insurance, increase or decrease the face amount of the coverage of the life insurance policy, raise or lower the premium and lengthen or shorten the period of protection.
What is a Beneficiary?
The beneficiary is the person who will receive the death benefit, or the sum of money from your life insurance policy for which you are insured, which will then be paid at the time of your death.
What is a Convertible Term Life Insurance Policy?
A Convertible Term Life Insurance Policy means that the life insurance policy can be converted or changed into a whole life or permanent policy usually without any proof of being insurable. 
What is a Dividend?
Life Insurance Companies pay policyholders a portion of their earnings in the form of dividends. Dividends are sometimes known as a return of premium for overpayment and are based on the insurer's investment, mortality, and expense experience. Dividends are not guaranteed. If your policy is a participating life insurance plan, you may receive dividend checks.
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What is the Face Amount?
The face amount of a life insurance policy is the amount of insurance that will be paid to the beneficiary when the person insured dies unless there are special provisions. If you have a $250,000 policy, that is the face amount.
What is a Life Insurance Policy Loan?
With a Life Insurance policy loan you may borrow money from your life insurance policy by using the cash value of your policy as security or collateral for your loan.
What is a Policy owner?
A policy owner is a person who owns a life insurance policy. The owner is usually the person insured, but the owner may also be a relative of the insured, a spouse, a partnership or a corporation.
What is a Premium?
Premiums are the payments you make to the insurance company to purchase a life insurance policy and to keep it in force over time.
What does Renewable mean in regard to a term life insurance policy?
It means that the life insurance policy can be renewed at the end of the policy term such as 1, 5, 10, 15, 20 or 30 years. This occurs with renewable term life insurance. The policy has an age limit during which time you can renew the policy without medical questions and after which time the life insurance policy may not be renewed. The renewal rate, however will be at a higher premium since the cost is based on your age at time of purchase.
What is Term Life Insurance?
Term Life Insurance is a low cost life insurance policy, in comparison with permanent life insurance which has a higher premium, that is purchased for a definite period of time such as 20 years. Term Life Insurance provides a death benefit only. It does not accumulate a cash value. A Term Life Insurance policy is usually purchased for temporary financial needs such as life insurance protection until the home mortgage is paid off, until the children have completed their college education or until a business debt has been repaid.
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What is a Level Premium Life Insurance Policy?
A level premium life insurance policy means that your payments will remain level or the same throughout the length of the policy.
What is a Level Term Life Insurance Policy?
Level Term Life Insurance Policies are generally available for periods of 5, 10, 15, 20, or 30 year periods during which time the life insurance death benefit remains level as well as the annual premium or cost. The Term Life Insurance death benefit or face amount of the policy will be paid to the named beneficiary of the policy.
What is a Limited Payment Whole Life Insurance policy?
In a Limited Payment Whole Life Insurance policy' such as a 20 Pay Life, premiums are payable for a certain limited period of time such as a 20 year period.
While the annual premium for the Limited Payment Whole Life is higher initially, you may pay less money over the life of the policy. Many people like to have their life insurance policy paid up before retirement so they don't have to worry about the cost at a time in their life when they are earning less money.
What is a Universal Life Policy?
A Universal Life Policy is a flexible permanent life insurance policy that allows the policyholder to make changes in his life insurance plan based on his or his family's changing needs. Annual premiums or payments as well as the death benefits can be increased or decreased based on certain limits set by the insurance company.
Universal Life is more flexible than either a Term Life Insurance policy or the Whole Life Insurance plan. A Universal Life policy can have either a level or an increasing death benefit amount. The increasing death benefit in a Universal Life policy generally requires a higher annual premium than the level death benefit. While term life insurance policies will have an increasing premium over time the Universal Life policy can have a more level premium since it accumulates living values, although the annual premium is higher on a Universal Life plan. 
What is a Whole Life Insurance Policy?
Whole Life Insurance provides a guaranteed premium that remains fixed throughout the life of the policy, a guaranteed death benefit and a guaranteed cash value. Whole Life Insurance policyholders may share in the excess earnings of the insurance company, assuming there is excess earnings in the form of a dividend.
Dividends, which are considered excess interest, are paid on participating policies. These dividends can be used to reduce future premiums or purchase additional life insurance. Whole Life Insurance is a life insurance plan for someone wishing to have permanent life insurance coverage in the future as opposed to a term life insurance policy which will be discontinued at some future date or a certain number of years.
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