Understanding the ins and outs of a life insurance policy can be quite frustrating. If this is your first time looking into life insurance, you might not be familiar with many of the terms and phrases used when talking about life insurance. By learning these terms, you’ll be able to choose the right policy for you without any hesitation. One of the first terms you might come across is “rider.”
A rider is an add-on to any standard life insurance policy that lets you exclude or include certain types of coverage. This lets you create coverage that meets your exact needs. For example, if you have a terminal illness and need money to pay for your care, you can choose an accelerated death benefit rider that will give you a payout while you’re still alive. Another term you might hear thrown around is the Declaration Page (or DEC). This is the first page of any contract and will outline your policy number, costs, and coverage limits.
Double indemnity is when your insurer pays double when certain conditions are met, such as dying in an accident. Finally, the insuring agreement is a binding promise from the insurer to pay after your death, and the mode of premium payment is how often you make payments. If these terms are confusing to you, keep in mind that life insurance from HealthIQ is always transparent and easy to understand. Want to test your policy-reading skills? Take the quiz below and see how well you fare.