| insurance providing for payment of a sum of money to a named beneficiary upon the death of the policyholder or to the policyholder if still living after reaching a specified age. |
] Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.
| life insurance
n. Insurance that guarantees a specific sum of money to a designated beneficiary upon the death of the insured or to the insured if he or she lives beyond a certain age. |
The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2006 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
| life insurance | |
noun | |
| insurance paid to named beneficiaries when the insured person dies; "in England they call life insurance life assurance" |
Life Insurance
A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.
Investopedia Commentary
The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your funeral costs and final medical bills? Would your family have to relocate? Will there be adequate funds for future or ongoing expenses such as daycare, mortgage payments and college? It is prudent to re-evaluate your life insurance policies annually or when you experience a major life event like marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business.
Related Links
Buying Life Insurance: Term Versus Permanent
Getting the Whole Story on Variable Annuities
See also: Bancassurance, Beneficiary, Death Benefit, Dreaded Disease Rider, Life Expectancy, Permanent Life Insurance, Policy Loan, Second to Die Insurance, Term Life Insurance, Variable Life Insurance
Main Entry: life insurance
Function: noun
: insurance providing for the payment of money to a designated beneficiary upon the death of the insured —see also ENDOWMENT INSURANCE
ordinary life insurance
: WHOLE LIFE INSURANCE in this entry
straight life insurance
: WHOLE LIFE INSURANCE in this entry
term life insurance
: life insurance that provides coverage for a set term and does not accumulate cash surrender value
universal life insurance
: life insurance characterized by flexible premiums, benefits, and payment schedules, by the indexing of cash value to money market interest rates, and by the periodic reporting of current value and company costs charged to the account
universal variable life insurance
: VARIABLE UNIVERSAL LIFE INSURANCE in this entry
variable life insurance
: life insurance in which all or part of the cash value of the policy is located in a tax-deferred investment portfolio with risk assumed by the insured for investment losses —compare variable annuity at ANNUITY
variable universal life insurance
: universal life insurance that includes the investment component of variable life insurance called also universal variable life insurance
whole life insurance
: life insurance that provides coverage over the life of the insured and that can be sold for surrender value or used as the basis of low-interest loans called also ordinary life insurance straight life insurance
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