What is a Term?

Term: is a type of life insurance that provides a potential death benefit for a fixed period.  This is commonly a flat premium for 10, 15, 20, or 30 years.  After the end of the term the policy no longer provides a death benefit. The other common characteristic of term life is there is generally no cash accumulation, which helps keep the cost relatively low.

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What is Permanent Life Insurance?

Permanent: permanent insurance provides lifelong protection, and the ability to accumulate cash value on a tax-deferred basis.

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Dividend

Dividend – A return of part of the premium on participating insurance policies to reflect the difference between the premium charged and the combination of actual mortality, expense and investment experience. Dividends are not considered to be taxable distributions because they are interpreted as a refund of a portion of the premium paid.

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Face Amount

Face Amount – The amount stated on the face of the policy that will be paid in case of death or at the maturity of the policy. It does not include additional amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends.

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Life Insurance Face Amount

Face Amount: The amount stated on the face of the policy that will be paid in case of death or at the maturity of the policy. It does not include additional amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends.

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