Life Insurance glossary
Plain-language definitions of common life insurance terms.
- Beneficiary
- The person or entity you name to receive the death benefit.
- Cash value
- A savings component in permanent policies that grows over time.
- Death benefit
- The amount paid to your beneficiaries when you die.
- Final expense insurance
- A small whole life policy meant to cover funeral and end-of-life costs.
- Rider
- An optional add-on that customizes a life policy, such as a waiver of premium.
- Term life insurance
- Coverage for a set number of years that pays a benefit if you die during the term.
- Universal life insurance
- Permanent coverage with flexible premiums and a cash-value component.
- Whole life insurance
- Permanent coverage that lasts your life and builds cash value.