• Quick College
• FAQ's
• Insurance Terms
• AM Best Ratings

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:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Variable annuity A contract in which the premiums paid are invested in funds offered by the insurance company, including bond and stock funds. The selection of funds is guided by the level of risk assumed. The account value reflects the performance of the funds that the owner has chosen for investment. Over the long term, variable annuities invested in equities reflect the growth and performance of the economy and serve as a hedge against inflation.

Variable life insurance A type of permanent insurance providing death benefits and cash values that vary with the performance of a portfolio of investments. The policyholder may allocate premiums among investments offering varying degrees of risk, including stocks, bonds, combinations of both, and accounts that guarantee interest and principal.

Variable-universal life insurance A type of permanent insurance that combines the premium flexibility of universal life insurance with a death benefit that varies as in variable life insurance. Excess interest credited to the cash value depends on the investment results of separate accounts investing in equities, bonds, real estate, and others. The policyholder selects the accounts to which premium payments are made.

Vesting The right of an employee to all or a portion of the benefits he or she has accrued, even if employment terminates. Employee contributions, as in a 401(k) plan, always are fully vested. Employer contributions vest according to a schedule defined by the plan and are usually based on years of service.