LIFE INSURANCE

A financial tool designed to protect individuals against financial hardship in the event of a loss occurs.


Insurer
The insurance company.

Insured
The person whose life is covered under the insurance policy.

Policy Owner/Applicant
The person who is buying or applying for life insurance.

Beneficiary
The person who is designated to receive the insurance proceeds upon death of the insured.

Face Amount
The amount stated in the policy as payable under a life insurance policy if the insured dies while the policy is in force.

Premium
Sum of money given by the insured as a consideration for the insured’s promise to indemnify or replace a loss.

Death Benefit
The amount payable upon death of the insured.

Maturity Benefit
The amount payable if the insured outlives the protection period.

Cash Values
The guaranteed amount received in case the plan is terminated prior to the death of the insured or maturity of the policy.

Dividends
The return of excess premium paid annually to owner of insurance policy based on insurer’s performance and experience over a given a period.

VUL (Variable Universal Life)
A life insurance contract with benefits linked directly to the performance of the funds. The funds are backed by different investment instruments such as shares, bonds, property, unit trust etc..


source: Sun Life

Learn more: Sun Life | Brighter Life Glossary