Life Insurance, Simplified.

When an insured person dies, the Amount of Insurance is the total money paid out as a death benefit. It is not subject to income tax and is usually given to the beneficiary in one payment.

Typically your spouse or a child — your Beneficiary is the person or entity receiving the money from your life insurance policy's death benefit when you pass away.

Cash Value is an investment component in life insurance that grows tax-free over the course of the policy's life. Part of a permanent life insurance policy, it is a living benefit you — the policyholder — can withdraw or borrow from in case of an emergency.

An excellent end-of-term benefit, Conversion allows term life policyholders to convert to a permanent life policy, without having to prove insurability.

Coverage Period is the length of time an insurance policy is in effect. If you are insured and you die within the COVERAGE PERIOD, your beneficiaries will receive the death benefit. If you die outside the COVERAGE PERIOD, your beneficiaries won't get anything from your insurance provider.

Your Estate is everything you own when you die—money, property, assets, liabilities, heirlooms,—everything passed down to your beneficiaries.

Evidence of Insurability is the financial justification for getting life insurance. Insurers evaluate your age, income, health, and finances to see if you're eligible.

The Executor is the director. They're person chosen to administer a person's estate upon their death. Their duty is to carry out the deceased's wishes, based on what's written in their will or trust.

Insurance policies often have a Grace Period — a 30 - or 31-day provision that keeps the policy active, allowing policyholders to catch up on paying overdue premiums.

Your life insurance policy includes an Incontestable Period — a legally required two- to three-year window protecting you from being canceled over an inadvertent misstatement in your policy application.

Your Life Expectancy is one of the figures insurance companies use to calculate your life insurance policy premium. It is based on statistics and actuarial tables.

The Owner of a life insurance policy is usually the person who is insured, but in some cases the policy is purchased and controlled by someone who has an insurable interest like a spouse or business partner.

Permanent Insurance or a PERM policy provides coverage until the death of the insured person.

The Premium is the payment made to keep your life insurance policy active. If you pay your Premium, your policy remains in force for the policy's duration.

Probate is the official and legal validation of a will.

Rating is the health classification determining how much a life insurance applicant would pay for their life insurance premiums.

The Suicide Clause is a provision in most life insurance policies allowing the life insurance company to withhold the death benefit if the policyholder dies by suicide within the first year or two of the policy.

Term Life Insurance covers a specific period of time and stipulates the insurer must deliver a tax-free payment if the insured person dies in that timeframe. Many term policies cover 5, 10, or 20 years, but can be renewed for a higher cost, at the end of the policy.

The Underwriter is the person who determines whether the life insurance applicant is insurable, and what the rate should be for that person's policy.

Waiver Of Premium is a benefit you can add on to the policy. If a policyholder has one, becomes disabled, and cannot work, their premium payments will be waived until their disability ends.