1. Beneficiary
The person(s) named by the owner of the policy to receive the life insurance proceeds upon the death of the insured.

2. Cash Value/Cash Surrender Value
The amount that is available in cash for loans and/or withdrawals. Accessing cash surrender value may reduce the death benefit and may increase the risk of lapse. Withdrawals may be subject to surrender charges and could have a permanent effect on the cash value. Loans reduce the cash value and death benefit by the amount of the loan outstanding plus interest. If the policy is surrendered, the cash surrender value is paid to the policy owner.

3. Convertible Term Insurance
Term insurance that can be exchanged (converted), at the option of the policyowner and without evidence of insurability, for a permanent insurance policy.

(Source:MetLife)

Three options for cash value life insurance would be: whole life, universal life or variable life. This type of insurance offers more than just a death benefit from your life insurance policy. It works like a long-term savings account or stock market investment. However they have higher premiums per $1,000 of coverage because you would be funding a cash value account as w ell as paying fees and expenses.

In many cash value policies, the annual premium does not increase from year to year, and is often marketed face-to-face by agents or brokers to be able to discuss needs and strategies.

14. Renewable Term Insurance
Term insurance that can be renewed at the end of the term, at the option of the policyowner and without evidence of insurability, for a limited number of successive terms. The rates generally increase at each renewal as the age of the insured increases.

15. Term Life Insurance
Life insurance that does not build up cash value and where the premium normally increases as the insured gets older.

16. Universal Life Insurance
A flexible premium life insurance policy under which the policyowner may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rates, which may change from time to time.

17. Whole Life Insurance
A basic type of permanent life insurance which can provide lifetime protection at a level premium. Premiums must generally be paid for as long as the policy is in force.

(Source:MetLife)

Life insurance is priced based on your life expectancy, the face amount you request and the length of the policy, whether it’s for whole life or term life.

Past and present health conditions impact your life expectancy therefore insurers would want to know your health condition. Common conditions such as high blood pressure, heart disease, obesity, cancer and depression may be causes for a turn down or can raise your premiums.

Based on medical history, the person may be categorized as: preferred plus, preferred, standard and substandard, and this will determine the premiums. Insurance buyers with severe health conditions will find it hard to get life insurance.

Senior life insurance, offered for those between the ages of 55 – 75, can be costly and difficult to purchase. Typically benefits such as: no health questions or medical exams, fixed premiums, a death benefit of premiums plus interest paid in the first two years, death benefits that won’t decrease after two to three years, guaranteed cash value on a tax-deferred basis, are included. But the senior life insurance benefits on offer will really depend upon the senior life insurance insurer. It would be better if the person requests for quotes from different providers and compare senior life insurance costs and coverage.

Permanent life insurance is a type of life insurance where the policy is for the life of the insured, the payout is assured at the end of the policy and the policy earns cash value. It was originally offered as a premium fixed return product known as cash surrender life insurance, which offered consumers guaranteed cash value accumulation and a regular premium. When consumers clamored for more flexibility the universal life insurance, which allows consumers flexibility for premium payments, was offered. This policy allows consumers to permanently withdraw cash from the policy without the interest associated with the loan provisions in whole life policies and it retained the fixed investment performance of whole life policies.

Level Term Insurance is a life insurance protection that remains level for the time period you select; either 10, 15, 20, or 30 years, and once selected cannot be changed. After the term period and you still need protection, the coverage may be renewed yearly up to age 95.

This type is usually availed of by people who feel that they made need coverage only for a certain period, such as small business owners who have short to moderate-term risk to cover. People who are unsure of long-term goals and would like something affordable at this time would be more willing to take this type.

Waiver of premium is actually a way of protecting your premium. If something unexpected happens and if in any case you will no longer be able to continue paying your life insurance premium, it is advantageous if you already have a waiver of premium rider. You are confident then that your insurance will not be cancelled even if you will not pay the premiums. And you can claim your benefits after six months since the time you become disabled. But of course, the insurance company will do their own way of verifying your disabilities and being not able to work. You and your agent should have an open communication regarding all concerned matters.

Working with a life insurance advisor can address problems commonly faced by families that lose primary income earners. Suddenly the harsh reality that the life insurance they are depending on to help them survive after the loss of an income earner is not adequate. You may be single and want to make sure that the things that matter most to you are taken cared of.

In this scenario, a life insurance advisor can help develop strategies and come up with solutions for the protection of the financial future of his clients. Some questions that are addressed by a life insurance advisor include:
1. How much would your family need to have a secured future in case something happens to you now?
2. What type of life insurance suits your individual needs?
3. Do you have an updated coverage with most current benefits in the market?
4. Are there charities or causes you want to provide for?

If the effect of your life insurance is for a specific time period only, it is called a Term life insurance. The beneficially will only claim the death benefit if the one insured dies during the specified time period or term. This form of life insurance is a cheaper way to buy considerable amount of coverage. The insurance company is not going to pay out if and when the insured person survives the term. Typically, you do not need a life insurance if you are single and has a family that can survive or is not dependent on your income. But if you have dependents even if you are single, term life insurance can offer you protection at a reasonable price.