Insurance Glossary: Page 2

Conversion Privilege: Allows the policy owner, before an original insurance policy expires, to elect to have a new policy issued that will continue the insurance coverage. Conversion may be effected at attained age (premiums based on the age attained at time of conversion) or at original age (premiums based on ageat time of original issue).

Convertible Term: A policy that may be changed to another form by contractual provision and without evidence of insurability. Most term policies are convertible into permanent insurance.

Cross-Purchase Plan: An agreement that provides that upon a business owner's death, surviving owners will purchase the deceased's interest, often with funds from life insurance.

Death Benefit: The amount of money paid to the beneficiary when the insured person dies.

Decreasing Term Insurance: Term life insurance on which the face value slowly decreases in scheduled steps from the date the policy comes into force to the date the policy expires, while the premium remains level. The intervals between decreases are usually monthly or annually.

Disability Coverage: Disability insurance is a product that is designed to protect you and your family from the loss of your income due to an accident. It is not for someone who is disabled or is already facing a medical problem.

Double Indemnity: Payment of twice the basic benefit in the event of loss resulting from specified causes or under specified circumstances.

Evidence of Insurability: Any statement or proof of a person's physical condition, occupation, etc., affecting acceptance of the applicant for insurance.

Exclusions: Specified hazards listed in a policy for which benefits will not be paid.

Expiry: The termination of a term life insurance policy at the end of its period of coverage.

Face Amount: The amount of insurance provided by the terms of an insurance contract, usually found on the first page of the policy. In a life insurance policy, the death benefit.

Final Expenses: Expenses incurred at the time of a person's death. These include funeral costs, court expenses associated with probating his or her will, current bills or debt, and taxes. Depending on their circumstances, the survivors may also want to pay the outstanding balances of mortgage and loans.

First To Die Insurance: Insurance policy whose death benefit is paid to the surviving insured upon the death of one of the insured's. There is no longer a benefit once the benefit is paid, however, the surviving insured usually has the option of purchasing a policy of the same amount without providing evidence of insurability.

Fixed Benefit: A death benefit, the dollar amount of which does not vary.

Free Look: Provision required in most states whereby policy owners have up to 20 days to
examine their new policies at no obligation.

Funeral Expenses: Expenses incurred for a funeral and burial. These can include casket, vault, grave plot, headstone and funeral director.

Grace Period: Period of time after the due date of a premium during which the policy remains
in force without penalty.

Graded Premium Policy: A type of whole life policy designed for people who want more life coverage than they can currently afford. They pay a lower premium rate that increases gradually over the first three to five years and then remains constant over the life of the policy.

Group Health Coverage: Group health policies typically cover treatment of illness, disease, and accidents, including doctor's visits,prescriptions,diagnostics(e.g. x-rays, blood tests), hospitalization, surgery and emergency services. Maternity care is also covered by most policies. Preventive care may or may not be covered in a basic policy, This will depend on the type of plan. The are optional coverage plans that can be added such as routinevision, and dental care, mental health care or chiropractor services. Most policies will not cover elective cosmetic surgery, experimental procedures, or work related injuries covered by workers compensation insurance.

Group Life Insurance The cost of employee benefits continues to rise, yet it's still important to offer a good benefits package if you want to attract and retain valuable employees. Top Rated Quotes has partnered with leaders in the Voluntary Payroll Deduction Program industry (VPD). By supplementing your benefits with Voluntary Payroll Deduction programs, your employees can purchase individual life insurance coverage through payroll deduction, and there is no direct, out of pocket expense to you the employer. This program will enable your employees to purchase supplemental individual life insurance policies through the convenience of payroll deduction.