Life Insurance

These are the payments you make to the insurance company. For term life policies, these cover the cost of your insurance and administrative costs. With a permanent policy, you’ll also be able to allocate these payments into an account that has cash value.

The people who receive money when the covered person dies. Beneficiaries are often spouses, children or parents, but they can also be friends, charitable organizations or others that you may choose.

The total amount of money the beneficiaries receive when the covered person dies. You choose a cash value when you buy a policy, and the amount is sometimes — but not always — a fixed value. Permanent life insurance can also pay additional money if the cash account has grown, and you selected certain options for your policy.

These are optional additions you can make to your life insurance to provide specific coverages and tailor your policy to your needs, such as providing benefits if you become chronically ill or disabled, need additional death benefits, cash value or estate planning assistance. Some riders are available for an additional cost.