When you begin your research for life insurance in Lexington, MI, start with the basics. Our skilled agents at North Coast Insurance Services have put together the following glossary of key terms. Use these terms to help you choose the best coverage for your family.
What Is Term Insurance vs Permanent (Whole) Insurance?
Term Insurance pacer beneficiary death benefit if you die within a fixed term of coverage. Beyond this date, the policy has no value.
Permanent (whole) insurance remains in effect throughout your life. Upon your death, your beneficiaries receive a death benefit and any savings, if applicable. These policies build cash value over time.
Additional Life Insurance Terms You Need to Know
Here are a few key terms to remember when it comes to evaluating life insurance:
Agent: Licensed representative who sells you life insurance.
Claim: When a covered event happens, you file a claim to notify the company for reimbursement.
Covered event (peril): Events covered under the life insurance policy.
Policy: Legal document that includes the policy coverage and requirements.
Premium: Amount you pay for life insurance, typically on a monthly or yearly basis.
Underwriter: A professional who reviews your insurance application and determines the amount of risk it holds.
If you have any questions on these or other terminology you see in your paperwork, don’t hesitate to ask for clarification.
Finding the Right Life Insurance
Perhaps you already have life insurance. Do you need more information on how to obtain it? Before you decide on the final details of your policy, make a list of all the terms you aren’t sure of. Our team would be happy to help you understand how life insurance works and whether it would work for you.
Contact the agents at North Coast Insurance Services in Lexington, MI today for peace of mind and to ensure that you have the right coverage to protect your loved ones.
