Life Insurance

Filed Under »
Dictionary Says

Definition of 'Life Insurance'

A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.

Investopedia Says

Investopedia explains 'Life Insurance'

The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your funeral costs and final medical bills? Would your family have to relocate? Will there be adequate funds for future or ongoing expenses such as daycare, mortgage payments and college? It is prudent to re-evaluate your life insurance policies annually or when you experience a major life event like marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business.

Video Definition


Related Definitions

  • Life Annuity

    An insurance product that features a predetermined periodic payout amount until the death of the annuitant. These products are most frequently used to help retirees budget their money ...
    Read More »
  • Equity-Indexed Universal Life Insurance

    A permanent life insurance policy that allows policyholders to tie accumulation values to a stock market index. Indexed universal life insurance policies typically contain a minimum ...
    Read More »
  • Accumulation Option

    A policy feature of permanent life insurance that allows policyholders to leave any dividends received with the insurer, where the dividends can earn interest. Accumulation options are ...
    Read More »
    • Company Owned Life Insurance - COLI

      A type of life insurance policy taken out by a company on the lives of employees whom the company considers to be of vital importance to its operations. Under this type of plan, the ...
      Read More »
    • Second-To-Die Insurance

      A type of life insurance on two people (usually married) that provides benefits to the heirs only after the last surviving spouse dies. This differs from regular life insurance in that ...
      Read More »
    • Variable Life Insurance Policy

      A form of permanent life insurance, Variable life insurance provides permanent protection to the beneficiary upon the death of the policy holder. This type of insurance is generally the ...
      Read More »
    • Term Life Insurance

      A policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let ...
      Read More »
    • Permanent Life Insurance

      An umbrella term for life insurance plans that do not expire (unlike term life insurance) and combine a death benefit with a savings portion. This savings portion can build a cash value ...
      Read More »
    • Adjustable Life Insurance

      A type of life insurance that combines features of term and whole life coverage, giving holders the option to change the characteristics of their policies as their needs change over ...
      Read More »
    • Family Income Rider

      An addition to a life insurance policy that provides the beneficiary with an amount of money equal to the policyholder's monthly income if the policyholder dies. A family income rider is ...
      Read More »

Articles Of Interest

Partner Links