A viatical settlement is the absolute sale of a life insurance policy by the owner of the policy before the maturation of the said policy. Sales of viatical settlements are at a price discount from the face amount of the policy. However, viatical settlements are normally in excess of the insurance premiums paid or current surrender value of cash. This offers the seller an instant cash settlement. Viatical settlements generally involve insured customers with a life expectancy of two years or less. In nations without state-subsidized healthcare, along with high healthcare costs-the United States-this is considered a very practical way to pay out severely high health insurance premiums faced by extremely ill individuals.

(Source:lifecoverpro)

A cash value life insurance allows you to get the cash accumulated while you are alive apart from providing the death benefits like any other policy. But you should pay the premium without fail.You can also avail credits from this policy. This is popularly known as permanent life insurance policy. Permanent insurance is otherwise referred to as cash value life insurance. This policy provides death benefits like any other insurance policy. This Policy remains in force as long as you pay the premiums without any fail. The additional feature is that the policy also pays the accumulated cash to the insured even before his death. This is a life insurance with cash value.

(Source:Lifecoverpro)

Joint life insurance policies are policies that enables two individuals to be protected, but the full value of the policy is paid only once at the time of either insurer’s death. This is also referred to as the joint first to die clause. Spouses, children, or even a business partner will benefit from a survivorship life insurance policy. Spouses is the directly benefit from it. Should one of the couple die, the surviving spouse will get the proceedings of the policy. The amount should be enough for them to live on, until the whole family gathered had gathered their bearings after the loss. Children are also benefited. Taking care of children and sending them to school can really be expensive. With a joint life insurance in place, these tasks are going to be less burdensome, especially if one of the parents dies unexpectedly.

(Source:Lifecoverpro)

9. Loan (Policy Loan)
A loan made by a life insurance company from its general funds to a policyowner on the security of the cash value of a policy. Generally, loans reduce the policy’s death benefit and cash value by the amount of the outstanding loan plus interest.

10. Paid-up Insurance
Insurance that will remain in force with no need to pay additional premiums.

11. Participating Policy
A life insurance policy that is eligible for the payment of dividends by the insurer (see also Dividend).

Permanent Life Insurance
Any form of life insurance except term; generally insurance that builds up a cash value, such as whole life. Coverage can last a lifetime.

12. Policyowner
The person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a trust, partnership or a corporation.

13. Premiums
Payments to the insurance company to buy a policy and to keep it in force.

(Source:MetLife)

4. Dividend
A return of part of the premium on participating insurance that is based on the insurer’s investment, mortality and expense experience. Dividends are not guaranteed.

5. Face Amount
The amount stated on the face of the policy that will be paid in case of death. It does not include additional amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends.

6. Insurability
Acceptability to the company of an applicant for insurance.

7. Insured or Insured Life
The person on whose life the policy is issued.

8. Level Premium Life Insurance
Life insurance for which the premium remains the same from year to year. The premium is normally more than the actual cost of protection during the earlier years of the policy and less than the actual cost in the later years. The building of a cash value is a natural result of level premiums over a long period. Term policies generally have level premiums for the initial term, though they generally have no cash value. The payments in the early years, together with the interest that is to be earned, serves to balance out the underpayment of the later years.

(Source:MetLife)

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.