"We've made life insurance
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Insurance Terms
You'll find everything you need to know about life insurance here. Our Research Center is different
because we only offer material which is explained in "Plain English".
To get started, let's take a look at common Insurance terms, and make it easy to understand what they mean:
These definitions are courtesy of the American Council of Life Insurers
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Face amount The amount stated on the face of a life insurance policy that will be paid upon death or policy maturity. The amount excludes dividend additions or additional amounts payable under accidental death or other special provisions.
Family policy A life insurance policy providing insurance on all or several family members in one contract. It generally provides whole life insurance on the principal breadwinner and small amounts of term insurance on the spouse and children, including those born after the policy is issued.
Fixed annuity An annuity contract in which the life insurance company credits a fixed rate of return on premiums paid.
Flexible premium policy or annuity A life insurance policy or annuity contract that permits varying the amount and frequency of premium payments.
401(k) plan An employment-based retirement savings plan which allows employees to make tax-deferred contributions from current earnings.
403(b) plan A retirement savings plan, similar to a 401(k), for employees of charitable and educational organizations.
457 plan A retirement savings plan, similar to a 401(k), for employees of state and municipal governments.
Fraternal life insurance Life insurance provided by fraternal orders or societies to their members.
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