Essential Life And Health Insurance Jargon
Every industry has its own language and terms. These words and phrases can be confusing to anyone who is not part of the daily operations of a specific industry, and the insurance sector is no exception.
So, to help you understand the terms, acronyms, and phrases regularly used when looking for insurance cover, Camlife Financial Corp has created this handy reference guide. Here you'll find valuable information allowing you to comprehend and communicate your life and health insurance needs effectively.
Suicide Clause
If the insured person commits suicide within the first two years, the death benefit is not payable. However, after two years, the death benefit is payable in case of suicide.
Term life
It's temporary life insurance for a specified length of time, which contrasts with permanent/whole life coverage.
Beneficiary
The entity or person that receives the life insurance payout after the death of the insured person.
Benefit period (on a disability policy)
The maximum length of time that a benefit will be payable. Usually, two years, five years, or up to the age of sixty-five.
Waiting period (disability policy)
The length of time that you must wait until you can collect your benefit after suffering a disability. It's like a deductible (typically 90 days.)
Whole life insurance
It's permanent life insurance, which also builds a cash value.
20-Pay Whole Life
Whole life insurance that gets paid up after twenty years, at which time premiums are no longer required.
Life insurance medical
Sometimes depending on age and amount of insurance, a medical exam is required to get a policy. But since the COVID-19 pandemic, medicals are routinely waived, and policies are issued subject to existing medical records and stated good health.
Non-medical insurance
It is not very clear! Since COVID-19, most policies no longer require medicals. Non-medical insurance, in the proper sense, means policies with fewer health questions that are easier to achieve. However, they typically cost at least double the fully underwritten policies.
Underwriting
The process by which insurers decide to approve an insurance application or not.
Disability insurance
Replaces your monthly income if you are unable to work due to illness or injury.
Critical illness insurance
Pays a lump sum benefit if you suffer a life-threatening illness. Ninety percent of claims are for cancer, heart attack, or stroke. This insurance does NOT cover COVID-19 as unlike cancer, heart attack, or stroke, it's too benign for the vast majority of people who get it.
Tax-free death benefit
The death benefit of a life insurance policy is not subject to taxation.
Captive life insurance agent
It's an insurance agent that represents only one insurance company, which is a disadvantage as they cannot shop the market for their clients.
Independent life insurance agent
It's an agent who represents multiple companies (like Camlife), which is an advantage as we can place your business where it fits best.
If you're looking for the best life insurance broker in Vancouver, BC, reach out to the experts at Camlife Financial Corp.
We offer our services across Vancouver, Richmond, West Vancouver, North Vancouver, Burnaby, Surrey, White Rock, Langley, Coquitlam, Maple Ridge, and New Westminster BC.
We specialize in providing efficient and effective solutions for all our clients' insurance needs.
Our qualified and experienced team are experts in life insurance, term life insurance, creditor (mortgage) insurance, life insurance for new immigrants, non-medical life insurance, and disability insurance, to name just a few of our specialties.
View our full list of services here, read customer reviews here, or get in touch with us here.