In traditional policies, you pay a regular premium and you receive the benefits at the end of the term of the policy. Alternatively, the beneficiaries receive the benefits when the insured passes away. When you have a plan with an accelerated payout option, it means that the benefits are paid directly to the insured in certain situations e.g. if he is terminally or chronically ill or is confined to a nursing home. The amount of accelerated benefits paid out varies (it could be lump sum or a series of payments) depending on the type of policy.
Accidental Death Benefits
This is usually a supplementary benefit that provides for an amount of money in addition to the basic death benefit of a life insurance policy. This additional amount is payable only if the insured dies as the result of an accident
A series of periodic benefit payments (either annual or monthly) that begins at retirement and continues throughout the participant's lifetime. A joint and survivor benefit wherein the participant's spouse will keep receiving annuities can also be provided.
The person(s) entitled to receive benefits under the given circumstances/ conditions stated in the Policy. The Beneficiary is stated in the policy application.
Capital Growth Dividend
The insurance company may declare a Capital Growth Dividend on any anniversary of the policy. This dividend would apply only to policies that are in force and where all premiums due have been paid on such anniversary.
The Capital Growth Dividend can be in the form of an addition to the face amount of the policy, in which case, the benefits payable to you at the maturity of the policy or to the beneficiaries at death of the insured will increase.
Capital Growth Dividends will not be applied if the policy is cash-surrendered within twenty years from the policy date under the "Cash Surrender" provision of the policy.
In a whole life insurance policy, this is the amount of money that the policy holder will receive if he / she cancels the coverage and surrenders the policy to the insurance company. The Cash Value is determined by the insurance company on any date as equal to the Account Value on that date less any surrender charges and processing fees deducted upon surrender.
Policy owners can, in some cases and subject to the policy terms, borrow against the cash value of the policy. Also called "Cash Surrender Value".
The conditions which are not covered by the insurance policy and for which no insurance benefits will be paid by the insurance company.
This is the basic insurance amount shown on the "Policy Specification Schedule". The Insurance Company is obligated to pay this amount to the insured at maturity of the policy, if this is specified in the policy, or to the beneficiaries in case of death of the insured.
The amount is generally shown on the first page of the policy. It is also called "face value"
It does not include additional amounts payable under accidental death or other special provisions, or acquired through accumulation of funds