Life Insurance Policy Terminology: Definitions

Life insurance policies are not the easiest things to read. But it’s very important to read your policy from cover to cover in order to ensure that you’re getting everything that you want in your coverage.

The definitions section of your policy has many of the key terms you need to know defined. You won’t be able to understand your coverage without a basic understanding of the defined policy terms. The definitions section normally appears in the general conditions section, and is usually printed in bold type.

It is a good idea to either pull it out of the policy or make a copy of it, so you can keep referring to it as you read the rest of the policy. Many people make the mistake of assuming that the words in the policy have a meaning broader than what is defined in the policy. The insurance company includes these definitions in the contract for a very good reason as it protects against claims and court cases. Companies go to great lengths to define their terms as clearly as possible.

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