No insurance resource would be complete without a comprehensive glossary of terms.

We’ve compiled a list of terms and their definitions to better help you navigate the sometimes confusing world of insurance below:

Beneficiary – A person who derives an advantage from something, especially a trust, will or life insurance policy.

Business Succession Plans – A planning tool for identifying and developing key internal people with the potential to fill key business positions within a company.

Buy-Sell Agreements – A legally binding agreement between co-owners of a business that governs the business if a co-owner were to die, become disabled or leave the business.

Disability Insurance – An insurance policy that offers income protection for individuals who become disabled.

Disability Overhead Expense Insurance – An insurance policy that will pay the insured’s business in the event that the insured becomes disabled. This type of insurance is typically taken out on key people that are vital to the success of the business.

Elimination Period – The time period between an injury/sickness and the start of benefit payments.

Employee Benefits – Various types of non-wage compensation provided to employees.

Fixed Annuities – A contract between an insurance company and an individual (annuitant) that obligates the company to make a series of fixed payments to the annuitant for the duration of the contract.

Group Dental Insurance – A dental Insurance policy provided by an employer.

Group Health Insurance – A health Insurance policy provided by an employer.

Group Long-Term Care Insurance –  An insurance policy provided by an employer that provides nursing home, home health care or assisted living benefits to employees that are in need of care.

Health Savings Plan (HSA) –  A savings account that allows for pre-tax dollars to be put away and used for medical expenses.

Hybrid Life and Long Term Care Insurance – A permanent life insurance plan that gives access to a percentage of the death benefit should the insured become in need of care.

Immediate Annuities – An annuity contract that is purchased with a single lump sum payment that will pay a guaranteed income starting immediately.

Universal Life Insurance – A permanent life insurance policy offering the protection of a term life insurance policy as well as a savings element.

Irrevocable Life Insurance Trust – A non-amendable trust that allows a life insurance policy to be exempt from an estate.

Term Life Insurance – A life insurance policy with a set duration on the coverage period. The duration is typically 10, 15, 20 or 30 years.  The policy builds no cash value.

Longevity Insurance – An annuity that is designed to pay the policy holder once they reach a pre-determined age.

Long-Term Disability Insurance – An insurance policy that provides income protection in the event the insured becomes disabled long term. Typically, the benefits begin after a 90 day elimination period and continue up the insured reaches social security retirement age.

Key Person Insurance – A life insurance policy taken out on the life of a key employee whose life the success of the business depends upon.

Long-Term Care Insurance – An insurance policy that provides nursing home care, home health care or assisted living benefits if the insured is in need of assistance with the activities of daily living.

Mortgage Protection Insurance – A life insurance policy designed to cover the cost of a mortgage in the event of the insured’s death.

Qualified Retirement Plan – A plan that allows for the contribution of pre-tax earnings into a savings account. In general, contributions are not taxed until money is withdrawn from the plan.

Return of Premium Term Life Insurance – A term life insurance policy that will return all premiums paid into the policy if the insured survives the term duration of the policy.

Short-Term Disability Insurance – Disability insurance that provides benefits in the event the insured becomes disabled. Typically benefits last 1 to 12 weeks.

Survivorship Life Insurance (2nd to Die) – A life insurance policy covering two people where the death benefit is not paid out until the second insured person dies.

Tax Deferred Annuities– A retirement savings plan.

Variable Life Insurance – A form of permanent life insurance with an investment component used to build cash value within the policy.

Whole Life Insurance – A life insurance policy guaranteed to remain in force for the insured’s lifetime as long as premiums are paid.

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