Maneuvering through life insurance can be challenging. Millions of consumers want to get life insurance but can’t fully understand its language. Its confusing terminology often keeps people from making a sound decision. ​ Not all who bought life insurance understood what they’ve enrolled in. Here are some terms you should know.

2. Maneuvering through life insurance can be challenging. Millions of consumers want to get life
insurance but can’t fully understand its language. Its confusing terminology often keeps people
from making a sound decision.
Not all who bought life insurance understood what they’ve enrolled in. Here are some terms
you should know.

3. The policy owner is the person who buys and controls an insurance coverage. He or she may
not be the one who’s insured. For instance, a child could own a policy on her father. The
policy owner is the sole person who gets policy details from the insurer and the only one who
can change who his or her beneficiary is.

4. The beneficiary is the person who will receive the payout of the life insurance. Note that you
can name one or more beneficiary, and you can even assign a certain percentage for each of
them.

5. The premium is the amount which you pay for insurance. It can be calculated on a monthly or
annual basis. You can actually get estimates on how much your premiums may be by
requesting a quote from your insurer.

6. Term life insurance is a type of life policy that can last for a specified number of years. You can
choose a term from 5 to 30 years.

7. Permanent life insurance is a life policy that lasts for the whole duration of your life. It also has
a cash value feature.

8. Permanent life insurance is a life policy that lasts for the whole duration of your life. It also has
a cash value feature.
There are various types of permanent life insurance: whole life, variable life, universal life, and
variable universal life. If you want a permanent life insurance, it would be wise to talk to a
financial advisor and make sure you fully understand the differences between term and
permanent life insurance before buying.

9. Cash value is a feature of permanent life insurance wherein part of your premiums goes to an
account that grows in value over time. In fact, you can make a loan against it and use the
money for anything you need.

10. A rider is an add-on that offers additional coverage at an extra cost. Take “waiver of premium”
rider, for example. With this rider, you are not required to pay for your life insurance when you
become disabled and can’t work anymore.

11. Underwriting is the process in which insurers assess your risks of insurance and calculate your
premiums. Insurers would often need additional information including medical records,
prescription drug history, and driving records.

12. When it comes to shopping for any type of insurance, it would be wise if you know it
well. Here at Roper Insurance Services, we are dedicated to assisting you every step of
the way as you decide on your life insurance policy. We offer free insurance quotes by
clicking here. Feel free to talk to one of our agents! Call us at (828) 697-6709, or visit us
at our office today!