Accelerated Death Benefits: If you're very ill and either about to die or need long-term care, some life insurance policies will allow you to collect what would be your death benefit to help pay for your care.

Annuity: An annuity is a form of insurance that enables you to save for your retirement. You pay money to the insurance company for a set period of time, and when you retire, you receive money from the insurance company each month. There are many different forms of annuities, Most people who buy annuities are 55 or older. get information on how

Beneficiary: The person who receives the death benefit when an insured person dies.

Cash Value (or Surrender Value): In a permanent insurance policy, the cash value is the money that the policyholder can take out, either by canceling the policy or withdrawing the money early. However, if the money is withdrawn without canceling the policy, it can affect the amount of the death benefit. A policyholder can also use the cash value of a policy to pay all or part of a policy's premiums.

Convertible Term Insurance: Term insurance that can be converted to permanent insurance automatically, without needing to go through a medical exam or proving insurability. It costs more than regular term insurance.

Death Benefit: The money paid to the beneficiary when the insured person dies.

Disability Waiver: A feature of some life insurance policies that, if you become disabled, will allow you to keep your life insurance without paying the premiums.

Exclusive Agent: An insurance agent who sells insurance for only one company.

High Risk Insurance: The term for life insurance for people with health problems or whose jobs or activities (like sky diving) put them at greater risk for dying. Also known as "non-standard insurance." It costs more than regular insurance. Get more information on high risk life insurance.

Incontestable Clause: After two (or sometimes three) years, the insurance company can't cancel a policy or refuse to pay a death benefit, even if the policyholder lied or misrepresented the facts on their application. However, there are usually exceptions for factors like age and smoking that can enable the insurance company to reduce a policyholder's benefits (or raise premiums) even after two years have passed.

Independent Agent: An insurance agent who sells insurance for more than one company.

Insurability: When an insurance company decides that they are willing to insure someone.

Insurable Interest: To take out a life insurance policy on someone, you need to have some family or financial connection to them (like you're a business partner). This is called an insurable interest and it prevents people from hearing that someone is sick and then taking out life insurance on that person.

Insurance Agent: The person who sells you insurance.

Insured (or Insured Life): The person whose life the policy is issued for, not the person who gets the money if they die. When the "insured person" dies, the "beneficiary" gets the money.

Joint Life: An insurance policy for two people, which makes the other person the beneficiary when the first person dies. This kind of policy is most frequently bought by husbands and wives who both work, since it is usually cheaper than getting individual policies.

Level Premium: An insurance policy where the premium stays the same every year.

Loan (or Policy Loan): If you have permanent insurance, you may be able to take out a loan based on the policy. If you fail to pay back the loan, the money is then taken out of the death benefit that goes to your beneficiaries.

Paid-Up Insurance: Eventually, a permanent insurance policy may become fully paid up, meaning that you have the insurance without ever needing to pay another premium.

Permanent Insurance: A form of insurance with no time limit that enables you to build up cash value. It's usually more expensive than term insurance, at least for younger people.

Policy: Your contract with the insurance company, which describes how much you owe them in premiums and what insurance you get in return.

Policy Owner: The person who owns the insurance policy (and pays the premiums). It is usually the insured person, but it could be a relative, business partner or corporation.

Premium: The money you pay the insurance company (usually each month, each year or twice a year) to provide you with insurance.

Quote: The price an insurance company estimates they will charge you for insurance.

Renewal Term Insurance: A term insurance policy that allows you to automatically renew your insurance policy, without getting a medical exam or proving insurability. The premiums will almost certainly be higher when you renew (since insurance costs more as you get older), but it guarantees that you will be able to get term insurance (which is not always possible when you're older). Renewal term costs more than regular term.

Riders (or endorsements): Changes that are made to a policy.

Surrender Value (or Cash Value): In a permanent insurance policy, the money that the policyholder can take out, either by canceling (also known as surrendering) the policy or withdrawing the money early. However, if the money is withdrawn without canceling the policy, it can affect the amount of the death benefit. A policyholder can also use the cash value of a policy to pay all or part of a policy's premiums.

Term Insurance: Insurance for a specific period of time (usually 1-30 years) that does not build cash value, it only pays a death benefit. It is usually much cheaper than permanent insurance, at least for younger people.

Universal Life Insurance: A form of permanent insurance that is relatively flexible because, within certain limits, you can change the amount of the death benefit, payments and payment frequency.

Variable Life Insurance: The riskiest form of permanent insurance, but one that can also give you the best return on your money. Essentially, the life insurance company invests your insurance premiums for you. If the investments do well, the death benefit and cash value of the policy go up. If they do poorly, they go down. It's a little like putting your savings into the stock market.

Whole Life Insurance: The most basic kind of permanent insurance. You normally pay a guaranteed premium and get a guaranteed death benefit and cash value build-up.