Some Common Life Insurance Terms You Must Be Aware of
life insurance is one insurance type that is purchased by the majority of us. Some may opt for cheap life insurance policy, while others go for expensive ones; one thing everyone does before finalising which policy to buy is compare life insurance quotes.
You may be looking for the cheapest life insurance policy or might be more interested in getting better cover by offering hefty premiums to make sure that you are doing the comparison properly you must be aware of certain life insurance terms. Below we have discussed about some terms that you must be familiar with before comparing life insurance quotes.
Benefit: When you compare life insurance the first thing you must check is the benefit a particular policy is offering you. The term “benefit” is used for the amount of money your family will receive if you die before the policy matures. Many insurance companies refer to benefit as death benefit. The amount offered as death benefit is usually more if the concerned person dies due to an accident.
Premium: Even if you buy the cheapest and the best life insurance, you will have to spend some money as premium. In other words, “premium” is the term used for the amount of money you will need to pay for keeping the policy alive. Premium for a life insurance policy can be monthly, quarterly, half yearly, or annual. The amount of premium varies from one policy to the other depending on the insured’s health status, age and the amount the policy will be offering as benefit.
Annuity: Annuities are life insurance policies that make payments periodically following a fixed schedule. Annuities can be fixed, immediate, deferred or joint. Fixed annuities make a guaranteed payment for a predetermined period of time. Immediate annuities start offering payments immediately after the purchase. Deferred annuities always include a waiting period, which means the annuitant will have to attain a certain age to start receiving payments. As their name suggests, joint annuities have two annuitants; payments are made until both of them die.
Knowing the meaning of these terms will help you in picking the best life insurance UK policy. You may hear several other unfamiliar terms when you go for purchasing a life insurance policy for the first time; if the insurance provider you are dealing with is a reputable one, its representatives will surely explain the meaning of all those terms to you.