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Secure - No Obligation - Free Quote - No Credit Check We have created a list of glossary terms so that our customers can better understand the nuances of life insurance and be better informed. Return of Premium - A hybrid between term life and whole life insurance . It's for a set period of time and the beneficiary receives a lump sum in the event the policy holder dies during this period. Should the policy holder lives beyond this period, the insurance company will pay out a tax free check for all the premiums paid during the period. The only downside ot this type of policy is that it's generally 50% more expensive than a standard term life policy. Cash Value - Amount of cash in your life policy if policy was cancelled Contestability Period - Period in which insurer is not obligated to pay a claim due to material misrepresentations found in the application. This is typically two years. Mortality Charges - this is the cost of insurance protection on a whole life product. This typically increases with the age of the policy holder. Rating Classes - The classes that insurances slices consumers into . To get the best deal, you should shop around to find which ratings class you have been placed into. Single Premium Life Insurance - one lump sum premium is paid up front and coverage is to be expected throughout the policy holder's life time. However, agents often miss out on the fact that additional payments may be required under circumstances. Medical Information Bureau - Private medical company that collects medical information on behalf of life insurance companies that are members of MIB. |