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With so many different life insurance terms, it can be natural to be unfamiliar with more than a few. Get definitions to life insurance terms with help from a Medicare certified life insurance professional in this free video clip.
With few exceptions, when a person receives any sort of financial benefit, he should expect to give the IRS a cut. As a general rule, things are no different when a creditor writes off a debt and allows the debtor to get out of paying the entire balance owed. This is a financial benefit --- although exceptions exist, the IRS typically imputes such canceled debt to debtors as income.
If you've recently lost a home through a short sale or foreclosure auction, it's possible your lender sent you tax form 1099-C reporting to the Internal Revenue Service a cancellation or forgiveness of debt. Consequently, you may have to pay income taxes on the amount stated in line 2 of this form. You may be able to exclude a mortgage cancellation income by simply attaching tax form 982 when you file your income taxes. Knowing when such exclusions apply to your situation is critical in order to mitigate the tax consequence. The terms "cancellation" and "forgiveness" are used interchangeably in…
New Jersey unemployment depends on the number of weeks you worked or your earnings. You must work 20 weeks or earn $7,300 for the entire period. This means you must earn the minimum salary in a base week to qualify. As of July 2011, the minimum earnings for a base week between 2010 and 2011 equal $145. Weekly benefits equal 60 percent of your average weekly earnings during the base year.
In legal terms, if you stipulate to something, it means that you agree with it. The parties to a lawsuit sometimes settle their differences by agreement, and when this happens, a stipulated judgment can avoid a court appearance. If the defendant in the case admits fault or liability for the problem and is not contesting the issue, you can file a stipulated judgment with the court, and it is just as enforceable as if a judge had heard your lawsuit in a trial and ordered a resolution.
The public can purchase surplus equipment from sources like the U.S. military, the government, law enforcement agencies and manufacturing facilities going out of business. Surplus equipment ranges from outdoor equipment to vehicles and machinery. When police forces can't find the legal owners of recovered stolen property, they sometimes auction it off to the public. Events like these auctions can offer people the opportunity to acquire quality equipment at a low price.
The abbreviation MMI may refer to any of a handful of things. It may mean Marion Military Institute, a public military college in Alabama. In other contexts, MMI may mean Marine Metadata Interoperability, a scientific discipline; the University of Nebraska Munroe-Meyer Institute for developmental disabilities; or the Motorcycle Mechanics Institute, a branch of the Universal Technical Institute. Grants exist for each of these incantations of MMI, from small education grants for individual students to large operational grants.
Located in Marion, Alabama, the Marion Military Institute (MMI) is one of five military junior colleges in the U.S. Although the Marion Military Institute does not directly offer any grants to help students defray the cost of attendance, MMI does offer several scholarships that assist recipients in paying for tuition.
When your employer makes a vehicle available to you for personal use, you are said to have gained imputed income for that benefit. Employers might offer this perk because it makes the company and position seem more attractive than other opportunities where the use of a company vehicle is not permitted. However, when an employer permits you to use their vehicle, you must claim this use as a taxable benefit on your tax return. This benefit can be calculated by using the IRS' Annual Lease Value Table.
A truck driver may find himself unemployed because of an economic downturn, layoffs or the nature of seasonal employment, among other reasons. When a truck driver is unemployed, she may be eligible to receive unemployment compensation benefits. If the truck driver is an owner-operator, he will likely not be eligible as he is considered self-employed in most cases; however, a truck driver who worked for a company may be entitled to receive benefits just like any other employee if he meets all eligibility requirements.
The modern capitalist economy relies upon financial institutions to facilitate translations between different parties. For example, if you want to buy stock in a certain company, you must use the services of a stock broker to purchase shares of the stock on your behalf. Financial institutions like banks and stock brokerages that act as middlemen for financial translations are sometimes called financial intermediaries. While financial intermediaries allow lenders and borrowers to connect, they introduce several potential disadvantages.
Split-dollar refers to the way a life insurance policy premium is paid. In most cases, people buy insurance using a split-dollar arrangement with their employer who agrees to pay part of the premium as an employee benefit. There are two basic ways split-dollar arrangements are usually structured: an endorsement method and a collateral method.
Buying a life insurance policy can protect your loved ones and provide investment returns. One such product that you may be able to choose from is accumulator life insurance. Accumulator life insurance gives you the chance to earn interest on your premiums and receive a death benefit at the same time.
Surplus insurance coverage, also known as excess insurance coverage, enables insurance purchasers to obtain insurance policies that are unavailable through standard insurance carriers, also known as admitted insurance carriers. Surplus lines insurance policies are sold by surplus lines brokers. Surplus lines brokers can place certain risks with surplus lines carriers after the risks have been rejected by standard carriers.
Most insurance companies charge stable premium payments in exchange for coverage. If a covered event occurs, the insurance company will pay its portion of the cost without charging the client any additional fees. However, some insurance companies offer stipulated insurance, which means that the company can charge penalties if it experiences a loss because of the policy.
Financial intermediaries play a vital role in the process of how money flows in the financial markets. When a company or organization needs to raise money from investors, one of the ways it can do so is through the assistance of a financial intermediary. In this situation, the intermediary acts as a middleman between investors and companies.
A certificate of insurance is a document from your insurance company that states which types and levels of coverage you have. Whether you have individual insurance policies or run a business that has insurance, you may need to supply certificates of insurance in a number of situations to meet criteria for employment or administrative processes.
When significant damage occurs to your home, your homeowner's insurance policy can help pay to repair or replace the damaged property. Depending on what type of policy you have, it may pay you for the value in today's costs or it could pay you a depreciated amount. Replacement cost policies make it possible to replace the property without having to worry about depreciation.
When an employer provides group term life insurance policies to employees, the worker receives a benefit in lieu of receiving cash. However, the Internal Revenue Service only allows the taxpayer to receive a portion of this benefit without having to pay taxes. The remaining amount of coverage in excess of this limit results in an imputed cost to the employee, which is taxable by the IRS. This is what is meant by an imputed life insurance policy.
Good budgeting is all about spending your money where it really counts, in terms of both a comfortable lifestyle and a secure financial future. Controlling your everyday spending is much easier if you use an accounting software program. These programs allow you to monitor all your spending, particularly if you use a debit card and your bank provides an automatic data transfer service that updates your accounting program with your recent spending activities.
Purchasing life insurance essentially boils down to whether you want the lower cost and defined coverage period offered by term insurance, or if you would rather pay higher premiums for a permanent policy, which lasts the rest of your life and provides the additional benefit of cash accumulation. Cash-value plans offer certain benefits, but they also have some potential drawbacks.
There are a number of print and television ads stating that a person is automatically eligible to receive life insurance. These ads boast that an individual is guaranteed coverage without even the seeing a doctor. These ads are truthful up to a point. While a person may be guaranteed some form of coverage, this coverage may so expensive or offer such little financial compensation that it provides little financial security to the policy holder.
Budgeting for current and future financial needs is a basic principle in money management. Knowing how much money can be allocated to expenses, investments, savings and entertainment can minimize financial stress and offer a blueprint for personal financial success. Establishing a successful budget requires some up-front time and attention, then occasional adjustments as your financial situation changes. Budgets can be created and managed through multiple methods, so select one that meets your personal financial needs and lifestyle.
All insurance companies employ a specific set of standards when determining the eligibility of a risk. In some cases, an applicant for insurance may have difficulty meeting these standards and may have to resort to seeking a policy from a surplus lines carrier. Surplus lines guidelines vary widely from state to state, but a higher premium is typically the norm for the policy holder.
When an insurance company issues a replacement value policy, the policy covers the full replacement cost of the item. For example, if a homeowner purchases replacement value coverage and his house burns down, the insurance company will pay to build a new house that is the same size and is constructed from the same materials.
Insurance protects people by accepting premium payments in exchange for agreeing to give them monetary reimbursement should they incur a catastrophic loss to person or property. The probability of such a loss occurring is called the insurance risk, while the specific manner in which that loss occurs is called the insurance peril. The type of peril that a policy protects you against depends upon the policy.
A financial budget is a means to manage money. A monthly budget of income and expenses gives a snapshot of where the money is coming from and where it's going. All expenses are reviewed and the necessary ones included in the budget and unnecessary ones eliminated or reduced. The budget includes expected expenses and an allowance for unexpected ones as well. Savings and investments should be part of the budgeting process.
When trying to decide which type of life insurance to buy, the cash value of a policy might play a role in your decision. While every life insurance policy offers a death benefit, certain types of policies also offer benefits like a cash value. Before choosing a policy, it is important understand what cash value is and how it can help you.
Standing water can cause significant damage to the surface on which it pools, the walls containing it and any items inside the water. Unfortunately, many of the situations that would cause standing water in your home are specifically excluded under normal homeowners insurance policies. Supplemental or catastrophic insurance is often the best way to be covered for standing water damage.
Law and ordinance coverage is an option for property insurance. A standard property insurance policy replaces the damaged property with the same, or similar property. If a house was built a long time ago, building a similar structure as a replacement may not satisfy new city regulations. Building a new house that meets modern environmental standards, and standards for protection against disasters such as floods and earthquakes, will cost additional money, which law and ordinance coverage provides.
Insurance companies play a balancing game between the coverage they must pay out, and the insurance premiums they gather as profit. Usually, this balance requires focusing on the risk that events will happen. In homeowner's insurance, this risk becomes especially important, since the prices to repair damage done to homes can quickly rise, and if insurance companies do not specify what types of events they will cover, they will start losing money on expensive home repair.
Mortgage insurance companies' guidelines no longer simply follow mortgage lenders' guidelines. Prior to the collapse of the mortgage industry, most mortgage insurance companies generally accepted loans approved to the major mortgage investors' guidelines. Since mortgage insurance companies protect the lenders against losses if the home falls into foreclosure, they're the ones who lose money if a covered home is not sold for enough to pay for the outstanding balance on the mortgage. Since this change, many people applying for a home loan qualify with the investor but do not qualify with the mortgage insurance company.
Most of us are well aware of where our paycheck originates. Unfortunately, we may not always know where that money inevitably goes. Creating a spending plan, or a basic home budget, can not only help us track our spending but facilitate a regular savings plan to achieve both short-term and long-term financial goals. Looking back over several months of prior spending such as reviewing transactions recorded in a personal checkbook, can help considerably in categorizing where the money goes, or has gone, when setting up a home budget.
In most types of business, the seller is primarily concerned with whether the buyer will pay the price for the product it offers. Insurance differs from this model because the seller, the insurer, is also concerned with certain risk characteristics of the buyer it will insure. These characteristics actually determine the price of the policy. Intermediaries help to match insurers with customers to provide accurate coverage at a fair cost.
A solid financial budget keys the success of any financial plan. After planning out your budget, you are more likely to make timely bill payments, save up cash for big-ticket items and put money aside to purchase investments. For motivation to stay the course, your financial budget should begin with goal setting. From there, you can put together a budget that preserves enough cash flow to meet your goals.
The word "budget" often has negative connotations, such as limits, work and sacrifice, but a budget is an important financial tool. A budget allows you to track and control your spending and work toward specific financial goals you have set for yourself. Once you start looking at a budget as tool instead of a hindrance, you will find budgeting a positive thing.
Anyone can benefit from creating a financial budget. A budget helps people see where the money goes, makes it easier for them to target problem area, adjust their spending habits and reach financial goals. All basic budgets have the same elements: income, fixed expenses, variable expenses, discretionary expenses and personal financial goals. By combining these elements, a person can create a simple monthly budget.
A financial intermediary is a bank, or other deposit taking institution, that accepts deposits from savers, then loans the proceeds to business and consumer borrowers. Banks are called an intermediary because they are between the saver and the borrower. Without the intermediary, savers and borrows would interact directly, as they do in capital markets.
If you constantly find yourself in a situation where your money runs out before the month does, you could probably benefit from preparing a budget. A budget is simply a method of allocating your resources to areas such as expenses and savings. Without a written budget, you may never be able to truly identify where your money is going each month, leaving you to flounder financially.
Budgeting is a process that can help you financially. Many people do not regularly budget and it ends up costing them a great deal of money in the long run. By budgeting, you can have more control over your money and what happens to it.
The State of Florida provides income benefits for residents unemployed through no fault of their own. The program is administered by the Agency for Workforce Innovation and provides partial wage replacement for a limited period of time. The program is completely funded by employers through payment of unemployment taxes and is provided to unemployed workers at no cost.
When workers are out of a job through no fault of their own, they may be eligible to receive unemployment insurance benefits. Unemployment insurance programs, which are federal-state joint ventures, are mostly funded by taxes levied on employees. Within federal government guidelines, states are able to govern their unemployment programs by setting their own eligibility criteria as well as benefit payment levels.
A personal budget is a plan for spending money in a way that satisfies your lifestyle priorities while helping you achieve your financial goals. The amount of money you choose to spend in a given area is a personal decision, but the basic elements of a personal budget are the same.
Many employers provide life insurance coverage to their employees as a fringe benefit. Even though the employee receives no money directly -- nor will her family, as long as she lives -- the coverage itself has value and is therefore taxable as a form of income. Life insurance coverage treated as income for tax purposes is called "imputed income."
With the exception of Delaware, Kentucky, Minnesota, New Mexico, Oklahoma, and Pennsylvania, all states require SR-22, a type of auto insurance coverage for high-risk drivers. If your driver's license has been suspended or revoked due to a DUI, major traffic infraction or even child support charges, you must purchase a SR-22 to get back on the road. If you do not own a vehicle, you can purchase a non-owner SR-22, which provides similar coverage.
Insurance is a type of financial product that protects a party such as an individual or business against unforeseeable losses or damages. For instance, a homeowner might choose to purchase homeowners insurance, which would pay the homeowner for the damage done to his home by certain events like fires and storms. There are many different types of insurance policies, but all types of insurance have some basic elements in common.
Insurance protects the insured party against financial loss by making payments when such a loss is incurred. The losses that are so protected are typically fairly specific in nature, so a policy may cover a specific piece of property, such as a car or house, or a particular type of expense, like medication or surgical procedures. But the fundamental nature and function of the policies are quite similar.
War zones are areas classified by insurance companies referring to coverage for properties and people affected by damage from wars and terrorism. For example, war zones described areas such as Iraq and Afghanistan in 2010. This type of insurance is offered mainly for businesses operating in or around war-zone areas. It also may cover travelers.
Life insurance companies sell life insurance to individuals based on the principle of an "insurable interest." An insurable interest is when you have a personal interest in the life of the other person. If that person dies, then it would injure you financially. If there is no insurable interest, then the insurance company will not sell the policy.
Income protection insurance is also referred to as disability income insurance, or just disability insurance. It is an individually purchased insurance policy that pays benefits when you are too sick or injured to work and earn income.
Life insurance riders are additional modifications made to your life insurance policy that affect how the policy works. Life insurance riders add additional functionality to the basic policy, giving you features that would not be available otherwise.
Accumulation for insurance typically refers to accumulation in life insurance policies. Premiums are paid into a policy and charges and costs are deducted. This is also referred to as account value.
Companies often prepay for insurance to protect one or more aspects of a business. The term "prepaid insurance" is an accounting term, indicating an asset that a company has purchased in advance and will expense over time.
Insurable improvements add to the value of the property. They must also be physical structures or objects that can be damaged or destroyed as well as replaced. Improvements like landscaping are often not insurable due to their vulnerability or difficulty in determining their value.
Insurance benefits are the payments your insurance provider guarantees to make after covered services under an insurance policy. They are the functional product you receive in exchange for payment of your insurance premiums.
Replacement value of a life insurance policy, which is the cost of purchasing an identical policy for a person of the same age, may be used to make a charitable gift. You may gift a life insurance policy to claim a tax deduction equal to the replacement value.
If your driver license is suspended or revoked and you want to drive again, you must carry an SR-22 certificate of insurance that is obtained from your auto insurance company and submitted to the state with a fine.
Compensation insurance packages provide monetary benefits, and possibly additional benefits, for people under specific circumstances. Coverage is recommended for individuals workers who face potential unemployment or the risk of injury on the job.
Third party car insurance is to the least expensive type of car insurance a driver can purchase. Deemed "third party" because it does not cover the first two parties--the policy holder and the insurance company--this type of car insurance meets most state minimum requirements.
Insurance companies earn profits by taking in more money in premiums than they pay out in claims to policyholders. Any excess profits earned by the insurer are referred to as a surplus.
An aggregate insurance limit sets the top dollar amount that a policyholder can claim on a health or liability insurance policy. The limit may cover multiple expenses, but beyond that limit, policy holders must pay out of pocket.
Mutual mortgage insurance (MMI) is set up as part of the purchase agreement between the borrower and lender, typically when using a Federal Housing Administration (FHA) loan. The insurance guarantees the lender the money for the loan in case the borrower does not pay the mortgage.
The term "Insurance intermediary" is widely used in Europe, especially in the United Kingdom. According to the Financial Services Authority of the U.K., an insurance intermediary is a firm other than the insurer that carries on mediation activity. In the United States, "insurance intermediary" is a term used to identify agents, brokers and other individuals and organizations that represent clients in insurance transactions.
When you buy insurance, you have the option of purchasing a policy from a broker or insurance company that is licensed in the state where you reside or do business. Insurance purchased from a company or broker licensed in-state is considered admitted insurance.
If someone needs insurance to cover legal fees because of a dispute, there are coverage options. For people living in England and Wales, after the event (ATE) insurance is available in England and Wales after a legal problem is brought to their attention.
"Insurance rates" is a generic phrase used in casual conversation that is more often referred to as insurance premiums by providers. It is the price buyers pay to acquire a certain amount of insurance protection.
Usually, insurance companies do not accept applications for insurance immediately. They normally take time to consider the applicant's suitability for the insurance. Before the outcome of an application, though, companies often give applicants a temporary form of insurance called an insurance binder.
Broad form insurance is an extended type of insurance that offers you more protections than the usual types of insurance will offer.
Microinsurance policies protect the poor against risks of death or disability and protect key assets the family relies on to provide income, transportation and stability. This new type of insurance is mainly offered in the poorest regions of the world.
A life insurance company uses various stipulations to ensure the company can reliably and predictably pay claims to beneficiaries. A stipulation, also called a "policy provision" is defined as "The content of a life insurance contract which details the terms of the policy and the requirements placed upon both the policyholder and the insurer." When you sign an insurance application, you promise to adhere to the contract and all of its stipulations.
Imputed income is generally regarded by the Internal Revenue Service (IRS) as an employer benefit disguised as a tax break or tax benefit. The IRS allows some employer benefits to be deducted from income taxes. However, when it comes to life insurance, the IRS is very specific about how much employer life insurance an employee can purchase on a tax-preferred basis.
Bodily insurance is short for bodily injury insurance. Bodily injury pays the medical bills of someone injured when the policy holder has some liability. Individuals can buy riders on their auto insurance or an additional policy to cover higher claims than what their primary auto policy will cover.
Life insurance is purchased as a hedge against the premature death of the breadwinner. There are two primary types of life insurance: term insurance and cash value insurance. Cash value is the most popular because policy owners can borrow against the policy without canceling it. If the owner decides to cancel it, she can cash it in for the cash surrender value of the policy as determined by the insurance company at the time of surrender.
Non-life insurance, also called property and casualty insurance, is a type of coverage that is very common and covers businesses and individuals. It protects them, monetarily, from disaster by providing money in the event of a financial loss. Before you purchase this type of insurance or if you already own any kind of non-life insurance, you should understand what it is.
Life insurance is a private contract between an individual, called an insured, and a life insurance company. Normally, the insured is also the policy owner, but this is not true in every case. The insurer provides an amount of money to the insured's beneficiaries upon the insured's death. However, because some life insurance contracts include a savings component, the federal government has made changes over the years as to what constitutes a life insurance contract. To be considered as a life insurance contract, the policy must pass several tests.
An endorsement for an insurance policy refers to any amendment that alters the terms of the contract either by expanding or restricting coverage. Endorsements can cause premiums to rise or fall depending on the changes made to the policy. Once the customer agrees to the endorsement it becomes part of the insurance policy itself and carries as much legal weight as the base contract.
As with other types of risk management, auto insurance may feel like an unnecessary burden when you're not using it; however, it's an essential resource when you are. It's also one of the most commonly carried kinds of insurance because the law requires drivers to be insured. But what, exactly, is auto insurance?
The term "face value" in life insurance refers to the death benefit that is paid to beneficiaries upon the death of the insured. Depending on the type of insurance policy, the death benefit may decrease over time, such as with credit life insurance purchased to cover a home mortgage that decreases as the mortgage is paid off.
With insurance, "peril" simply means "cause of loss." All property insurance contracts protect against some sort of peril, and therefore all types of property insurance can be considered peril insurance. In most situations, the term "peril insurance" refers to a homeowner contract, which is required to secure mortgages for real estate transactions.
The split-dollar life insurance concept has existed for decades, and continues to remain a viable method of purchasing a policy. Split-dollar insurance is not actually a product itself, but rather a formal arrangement that provides for the payment of premiums. Using the split-dollar methodology, both individuals and businesses can benefit from the purchase of a life insurance policy.
Blanket insurance encompasses a wider range of risks than standard insurance coverage. When used to describe a type of homeowner's coverage, blanket insurance covers all buildings on a property and may include damage, such as from flooding, that is not routinely covered.
When evaluating a policy application, an insurance company can accept, amend or decline the applicant. Understanding the declination process will help you determine the strategy you should take to obtain coverage through another insurance carrier.
Modified term life insurance is a combination of three kinds of insurance: life insurance, which covers funeral expenses and other end-of-life expenses while giving your loved ones financial support upon your death, term insurance, which offers coverage only during the insurance's term (usually five to 20 years), and modified insurance, in which the premium payments usually start lower than they normally would be and increase over time. So, a modified term life insurance policy would offer insurance coverage for a set amount of time and have premium payments that either increase or decrease as time goes on.
An insurance conversion happens when a policy is converted into another type of policy. This can be beneficial to the policy owner; however, they must meet certain requirements of the insurer to complete the conversion.
Terrorism insurance works just like standard hazard insurance. If a loss occurs due to an act of terrorism instead of, say, a lightning-caused fire or accident, the insurance company is responsible for paying the victim for the losses.
If you purchase auto, homeowner's or personal liability insurance, you have likely heard the term "third party insurance." Knowing how third party insurance works will help you better understand how your policy protects you.
If you need to purchase a life insurance policy, but you have had past health problems, you may have wondered if you qualify for a guaranteed life insurance policy. This type of policy helps people who would otherwise be unable to obtain coverage.
One requirement for all insurance contracts is that the named insured (the person who purchases the policy) has an insurable interest in the person or property to be covered. Other people, called "interested parties" or "additional interests," may share insurable interest.
When you own a business, all your employees are important--from the person who sorts the mail to the person who balances the accounts. But most of the people you employee are replaceable. Those small few who aren't are considered key employees, and their lives are insurable.
As we approach 2010, there has been much talk of a government takeover of health insurance in the United States. When a government becomes an insurance provider, it is responsible for covering the costs of damages to whatever is being insured.
When someone has valuables such as collectibles, a home or an automobile, they are usually insured by an insurance company. When a claim is filed due to a loss or damage, the funds paid out are the proceeds.
Life insurance is important to have these days. With the high cost of final expenses, not having life insurance can incur a large financial burden on loved ones. A guaranteed renewable life insurance policy is a good policy to have for coverage of funeral costs, paying off debt and leaving extra funds to loved ones.
Individual life insurance paid by an individual is a type of insurance that is payable on death and issued to only one person. It differs from group life insurance, which is provided through a company, and joint life insurance, which insures the life of two people.
A life insurance policy is a legal contract between the policy owner and the insurance company. Understanding the contract in its entirety is essential for proper analysis and financial planning. One of the common contract definitions that is often a source of confusion is that of the policy owner's dependents. Far too many people are mistaken about the definition of a dependent and fail to verify the accuracy of their assumptions. By ensuring proper comprehension of a dependent, the owner can make educated decisions to most securely protect the entire family.
Life insurance provides a financial payout to beneficiaries left behind after an individual's death and also can be used as an investment vehicle. There are four basic types: term, whole, universal and variable.
Tertiary insurance is a supplemental coverage plan. It is used primarily for health care but is available for other coverage such as traveling and banking. It provides a safety net in case of rare instances when other forms of insurance are inadequate.
A certificate of insurance is provided with various types of insurance policies. The most common type of certificate of insurance comes with an automobile policy. A certificate of insurance is an insured's proof that he has an automobile or other insurance policy in force. The certificate provides limited information about the actual policy. The information it does contain can vary if a custom form or a standard Acord (see Resources) certificate is being used by an insurer.
Secondary insurance, as the term implies, is insurance coverage that is available in addition to any primary policy that an insured may carry. It is often used to supplement existing policies or to cover any gaps in insurance coverage. It may also be present when two spouses have coverage through different employers. When coverage overlaps, there are methods available to determine how it will apply.
Liability insurance covers the other party's personal injury damages that result from your negligence.
Unlike whole life insurance, term insurance is in force for a specific length of time. It is also much less expensive to maintain and builds no cash value over the time it is in effect. Term life insurance has overtaken whole life insurance and is the most popular life coverage available today.
Ordinary life insurance has many other names; one of them is traditional life insurance. Ordinary life insurance was the predecessor of many of the insurance policies on the market today. It has several aspects that set it apart from other types of insurance.
Survivor life insurance insures the lives of two people, usually a husband and wife. Its other names included "second-to-die life insurance" and "joint survivor life insurance." It doesn't pay until the second person dies.
