Life / Accident / Pensions / Benefits

Introduction

Glossary of Life Insurance and Financial TermsFrom Beaton Insurance Services.

Main difference between life and general Insurance:
Life insurance is much different from general insurance.  It is not a contract of indemnity and generally is not therefore subject to the two basic corollaries of a contract of indemnity (subrogation and contribution).

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Definitions

Annuity
A contract that provides for periodic payments starting after a stated period or on a contingent date and continuing for a fixed period or for the remaining life of the annuitant.

Critical Illness Insurance

Employee Benefit Plan
A plan created or maintained by an employer or employee organization, providing benefits to employees. The two main types are employee pension plans (for retirement benefits) and employee welfare plans (for benefits such as life insurance, health and dental insurance, and disability income insurance). A plan’s cost can be completely paid by the employer or be shared by the employer and employees. A plan can also provide advantages or benefits to employees whether or not they are insured, including sick leave, disability, profit sharing or a stock purchase program.

Pension
Money paid at regular intervals as a retirement benefit. A retiree has to meet eligibility criteria under the retirement plan.

Term life insurance
Life insurance in effect for a specific length of time (e.g., 5 or 10 years). If the insured survives beyond that period, coverage ceases. Unlike a whole life policy, this type of policy does not build up any cash or non-forfeiture values.

Whole life insurance
Life insurance in effect for the entire life of the insured (provided premiums are paid). In most cases, no physical exam is required.

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