Life Insurance and Annuities Definitions

Key Man/Employee Insurance - Key man/employee life insurance helps reimburse a business for economic loss that occurs when a key employee dies

Term Life Insurance - Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. Term life insurance is temporary, as it covers only a specific period of time, the relevant term. If the insured dies during the term, the death benefit will be paid to the beneficiary. Because the term expires the insurer often does not have to pay out making term insurance the most inexpensive way to purchase a substantial death benefit on a coverage per premium dollar basis.

Group Insurance - Group insurance is insurance that covers a group of people with common characteristics, usually that they are members of societies, employees of a common employer, or professionals in a common group.

Whole Life Insurance - Whole life insurance requires a level premium for life, and guarantees a minimum cash value growth included in the policy. There are two general types of whole life policies: non participating policies (non par), and participating policies.