Backdating:
Some insurance companies allow policies to be dated earlier than the actual date issued in order to save age. By underwriting at a younger age, the premiums will typically be lower than if the policy is dated at the actual date.  However, take note that premiums will be due from the date on the policy, not the actual date.

Beneficiary:
The person (or entity) to whom the proceeds of a life insurance policy are payable when the insured dies.  There are various types of beneficiaries (see primary, contingent or secondary and tertiary beneficiaries)

Binding receipt:
The receipt for payment of the first premium, which assures the applicant that, if he or she dies before receiving the policy, the company will pay the full claims if the policy is issued (or would have been issued) as applied for.

Broker:
In insurance, one who places business with more than one company and who has no exclusive contract requiring that all his or her business first be offered to a single company.  Unlike the agent, who is considered to represent the company, the broker usually is considered as representing the buyer.

Burial insurance:
A general term usually referring to a small policy of life insurance ($5,000 to $25,000) intended only to met the final expense needs of the insured.

Business continuation insurance:
Generally refers to a life insurance policy used to fund a business continuation plan (also see buy-sell insurance).

Business Insurance:
Life insurance coverage concerned primarily with the protection of an insured’s business or vocation.  Business insurance protects a business against the loss of its valuable lives or key executives; stabilizes the business through the establishment of better credit relations; and provides a practical plan for the retirement of business interests in the event of the death of one of the owners.

Buy-Sell agreement:
An agreement between the owners of a business, which provides that the interest of any one of them who dies shall be sold to and will be purchased by the surviving co-owners or by the business at a value agreed upon by the parties and stipulated in the agreement.  Also applies to buyout arrangements between owners and key employees.

(back to main Life Insurance Glossary page)

Visit these links to learn about:

Get instant life insurance quotes:

To speak with a licensed representative, contact us or call 866-691-0100.

Latest News

Final Expense Life Insurance versus Guaranteed Issue Whole Life
final expense versus guaranteed issue

Life insurance is certainly a necessary. If you have financial commitments that could come to be a problem when you pass away, you should be protected. But often that’s much easier said than done. For senior citizens, final expense life insurance or guaranteed issue life insurance are strategies to get a reasonably inexpensive whole life […]

Read More
Business Continuation using the Buy-Sell Agreement
buy-sell agreement

Any closely held small business, like a real estate brokerage, small law firm, or other small service business, whether recently created or well established, should have a specified business continuation strategy to financially accommodate the chance of a proprietor or partner dying, entering retirement, or becoming disabled. The Buy-Sell Agreement will expressly determine how the […]

Read More
4 Great Tools for Budgeting Family Finances
budgeting tools for famillies

Tools for Budgeting That Create Financial Stability Spending your money blindly will only lead to trouble. Unless you’re raking it in with few to no monthly bills, tracking and managing your personal expenses is a surefire way to create financial stability. You need to be able to see how much money you have coming in […]

Read More