Top Need-To-Know Life Insurance TermsArticle Posted by Expert Author: Adam Foley on 04/08/2013
Are you planning on starting your shopping for life insurance soon? If this is your first time, you should know that understanding life insurance terminology can make or break your experience, meaning that it can either save you or cost you money. Life insurance has many different terms, and many of them can be like hearing someone speak in another language when you don't know what they mean. But arming yourself with this knowledge before you sign up for a policy can mean that you make a more informed decision.
Cash value refers to the cash you could receive if you decided you no longer needed the policy and decided to terminate it. This is only possible with permanent life insurance policies, and is also called "cash surrender value".
Face amount is the amount of money that your beneficiary will receive in the event of your death. It may also be listed as the "death benefit amount" in your insurance documents.
Convertible life insurance is used to define a term policy that gives you the option to convert that policy into permanent life coverage without the need for a medical examination.
Understand the terminology is only one piece of the pie when researching life insurance companies. We have assembled useful information to help consumers make this important decision as individual as they are.
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