Plain-English definitions of the Medicare, ACA health, and life insurance terms most consumers ask about. Each definition is reviewed by a licensed insurance professional. Cross-linked from across our editorial content so you can read in context.
Algorithmic life insurance underwriting with no medical exam — same rate classes as fully-underwritten.
Savings component of permanent life insurance that grows tax-deferred.
Term life feature letting you convert to permanent insurance without new medical underwriting.
Term life with face amount that drops over time — generally inferior to level term.
Formula for calculating life insurance need: Debt + Income (10x) + Mortgage + Education.
Annual return of premium from a mutual life insurer — based on actual mortality, expense, and investment experience.
Small whole life policy ($5K-$50K) sized to cover funeral and burial costs.
Life insurance with no health questions — small face amounts, graded death benefit, highest cost per dollar of coverage.
Permanent life insurance with cash value tied to a stock index, with caps and floors — often oversold.
Decreasing term life sold by mortgage lenders — usually overpriced vs. equivalent level term.
Whole life rider that uses dividends to buy small bits of additional fully paid-up insurance.
Life insurance with no medical exam but extensive health questions — quick issue, smaller face amounts.
Pure death benefit life insurance for a set period (10/20/30 years), no cash value.
Permanent life insurance with lifetime coverage and slow-growing cash value.