Term Insurance

Life insurance that covers you for a set period of time (e.g. 10, 20, or 30 years).

Permanent Insurance

Life insurance that lasts your entire life and can accumulate cash value.

Cash Value

The savings component of permanent life insurance that grows tax-deferred.

ILIT (Irrevocable Life Insurance Trust)

A trust designed to own life insurance outside your taxable estate.

Buy-Sell Agreement

A legal agreement that outlines what happens to a business owner’s share in case of death or disability.

Key-Person Insurance

Life or disability insurance on a crucial employee or owner of a business.

Long-Term Care Insurance

Insurance to help cover the cost of care in your home, assisted living, or nursing facility.

Beneficiary

The person or entity who receives the insurance proceeds upon the insured’s death.

Underwriting

The insurance company’s process for evaluating risk and determining policy eligibility/cost.

Rider

An add-on provision to a policy that modifies coverage (e.g. LTC rider, waiver of premium).