Life Insurance and Annuities

23 Glossary of Terms Accelerated Benefit Provision — A provision in many new policies which will allow the policy owner to receive a portion of the death benefit early if the insured person is diagnosed with a terminal illness or permanently confined to a nursing home. Accidental Death Benefit — A rider added to a policy that provides an additional benefit if the insured dies from accidental causes. Accumulation Phase — The phase in which you pay into your annuity. Annuitization Phase — The phase in which you receive monthly payment from your annuity. Basis Points —The fees in your annuity; reflects a percentage of your investment. Certificate — A document provided to a person insured under a group insurance policy that provides evidence that the coverage exists. Death Benefit — The amount of money your beneficiary receives if you die before you begin the annuitization phase; generally the value of your annuity or the amount you have invested, whichever sum is greater. Evidence of Insurability —Medical and other information about a person applying for insurance that the life insurance company keeps confidential, but uses to decide whether the policy can be issued and what premiums will be charged.