Life Insurance Terms-Columbian Financial Group-CFG

COMMON LIFE INSURANCE TERMS

Actuary - an employee of the
	insurance company who calculates probability to determine premiums and other factors.
Agent - a representative of the
	insurance company who sells the policy.
Applicant - the person who wants to
	buy the insurance policy.
Beneficiary - the person or
	organization whom the insured has selected to receive the death benefit from the life insurance policy.
Benefit - the proceeds paid to the
	beneficiary when the insurance claim is approved.
Cash Value - the amount of money
	that the policyowner receives if he or she cancels coverage of a whole life insurance policy and surrenders the policy to the insurance company. Also known as the "policyowner's equity" or "cash surrender value," the policyowner can also borrow against the cash value of the policy.
Claim - a request for payment,
	usually by the beneficiary, under the terms of the insurance policy.
Contestable Period - length of time,
	usually two years, during which the insurance company may rescind a policy based upon the application.
Dividend - a share set by an
	insurance company in its profits that is paid to policyowners in the case of a participating policy.
Exclusion - a restriction placed
	in a policy which limits the coverage.

Face Amount - the amount that
	would be paid to the beneficiary in the event of the Insured's death, excluding additional insurance purchased using policy dividends or accidental death benefits, and providing premiums are paid on time and no policy loans are outstanding at the time of death. In Universal Life policies, the face amount may vary if the premiums paid are insufficient to support the death benefit.
Grace Period - the amount of time
	after which a premium is due but not paid in which a policy may stay in effect.
Home Service Distribution - A
	system used to sell Monthly Debit Ordinary life insurance. MDO policies are serviced by life insurance agents who call at the policyowner's home to collect the premium.
Insured - the person whose
	life is covered under a life insurance policy.
Insurer - the insurance company
	which issued the policy.
Insurable Interest - at the policy
	inception, the beneficiary is determined to have a close family relationship and/or an economic interest in the life of the insured.
Joint Whole Life - one policy covers
	two people, paying the benefit when one of the insureds dies first.
Key-Person Insurance - insurance
	purchased by a company to cover the life of an employee considered integral to the company.


			COLUMBIAN MUTUAL LIFE INSURANCE COMPANY
			COLUMBIAN LIFE INSURANCE COMPANY

Columbian Life Insurance Company is not licensed in every state. Product availability may vary by state.

Calling from within New York State - 800-452-0555 Calling from outside New York State - 800-423-9765