Face amount:
In a life insurance policy, the amount payable in the event of death, as stated on the front page of the policy.  Since the amount of insurance protection provided under a given policy is usually stated on the face or first page of the contract, the term is commonly used when referring to the death benefit in the contract.

Final expense insurance:
A life insurance policy purchased to cover the costs incurred during a last illness, funeral and burial costs, any debts, probate expenses, death taxes and any other taxes or obligations which must be paid in order to settle the estate of a decedent.  Sometimes referred to as burial insurance.

Flat extra premium:
Premium added on top of the regular premium of a life insurance policy to cover added risk, typically that of high risk occupations or activities (e.g. flying an aircraft).  The insurance company adds a flat extra fee per thousand dollars of death benefit.  An example of this would be a pilot paying and extra $2 – $3 per thousand dollars of benefit.  In this example, a pilot taking out a $1 million policy would pay an extra $2,000 – $3,000, over and above the normal premium.

Free look period:
A specified period of time in which the insured can keep the policy for review and, if then decides to return the policy, a full refund is given.  The free-look period varies by company and state, so make sure to check the free-look terms when you receive your policy.

(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