This section helps explain the meanings of some words you may see on SeniorsUnited.com, and others that you may have heard of or come across when considering which life insurance is best for you.
DISCLAIMER: This is a guide only and does not form part of a contract. Please reference the Seniors United Insurance Policy Contract issued to you upon joining for full definitions of the following terms.
Guaranteed Acceptance Whole Life Insurance
Also known as Final Expense Life Insurance or Burial Insurance, Whole Life Insurance Policy provides coverage for an individual’s whole life, rather than a specified term. During the life of a whole life policy, both the face amount and premium remain level and the death benefit is guaranteed to the beneficiary as long as all required premiums are paid on a timely basis.
A Whole Life policy includes a component which accumulates ‘cash value’ and increases over time. A whole life policy’s cash value allows the policy owner to take out a loan from the life insurer against the policy’s accumulated cash value, or to use as collateral on a loan.
A policy owner or the insured, is the person who owns the life insurance policy as named in the schedule. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation.
The beneficiary is the person, persons, or entity named in the policy to receive the benefit amount shown in the schedule. The Insured may name any person or entity as beneficiary. If two or more are named, each will receive an equal share of the benefit unless the Insured designates otherwise.
A premium is the payment a policy owner agrees to make on an insurance policy.
Accidental Death Benefit Rider
The accidental death benefit rider is part of the policy so that if the insured sustains an accidental injury and dies as a direct result of that injury, the insurer will pay the accidental death benefit amount shown in the schedule, in addition to the benefit amount. The accidental injury and the death both must occur while the insured is covered by the policy.
Cash Surrender Value
The cash surrender value is the amount available in cash upon voluntary termination of a policy by its owner before it becomes payable by death or maturity.
The schedule is the page with the basic information for the Insured outlining important items, including, but not limited to, the effective date, the insured, the benefit and any other product features.