No insurance resource would be complete without a helpful menu of terms and concepts. This information-rich list will help you make sense of the solutions you are considering.
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Somewhat of a hybrid between Term insurance and a pure endowment: it is paid out whether the insured lives or dies. The policy value is payable to the insured if he/she is living on the policy's maturity date or to a beneficiary if the insured is no longer living. Endowment insurance can be purchased to last for set durations (i.e., 15 years) or arranged to mature at certain ages (i.e., insured's age 65).
The accumulation and protection of an estate for the financial security of the individual (during retirement years) and his/her beneficiaries (family, loved ones, charities), and the distribution of those assets upon the individual's death. Life insurance and annuities are effective methods of providing liquidity needed for estate distribution. In the case of large estates, it is often wise to name the owner of the policy someone other than the insured or his/her spouse. A trust is one viable alternative.
Conditions that are not covered by an insurance contract.
A non-forfeiture option that uses the cash value of an ordinary life policy as a single premium to purchase Term life insurance for the full face amount of the original policy. The term of the new policy depends on the amount of cash value and the insured's attained age.