Life Insurance Reviews
FREE LOOK PERIOD
The "free look" period gives purchasers of life insurance and annuities a set time period to walk away from the transaction penalty-free, with no reason required. Each state sets the period.
A life insurance policy’s face value is typically the amount of death benefit it will pay when the insured dies. Some permanent policies may pay more or less than this amount, depending, for example, on any loans made against the cash value or paid-up additions of life insurance.
Insurable interest is when you (or a group) have an economic interest in another person’s life or the continuance of a legal entity or asset. It also exists when you have an interest in another person based on love and affection, providing there is a blood or legal relationship involved.
The person whose life is insured by the policy: If they die while the policy is in force, the beneficiaries receive the death benefit.
The person who owns the life insurance policy is often the person insured, but not always; also referred to as the policy owner.
The person (beneficiary) or persons (beneficiaries) who receive the death benefit when the insured person dies.
The amount the beneficiary or beneficiaries receive from a life insurance policy when the person insured dies.
Cash value is the amount of money inside a permanent life insurance policy. It is the accumulation of funds that remains after your premiums pay for policy expenses. The cash value can help offset insurance costs as it increases over time, and may be accessible via loans and withdrawals.
ACCELERATED DEATH BENEFIT
An accelerated death benefit (ADB)—also referred to as a living benefit—is a feature of a life insurance policy that pays a percentage of the death benefit early (up to the full benefit in some cases) if qualifying conditions are met.
CASH SURRENDER VALUE
The cash surrender value of your policy depends on how much cash value you have and what if any surrender penalty exists when you want to cancel it. How long the surrender period lasts and how surrender charges are calculated are listed in your policy.