When you plan to get life insurance or any insurance for that matter, it is best if you are equipped with some knowledge of the terms used in the policy so that you are aware of what you are paying for.

Policy This is the term for a contract between an insurance company and a purchaser of life insurance.
Insured The usual term for a person who purchases life insurance on themselves. The insured could also be a close family member of the purchaser.
Beneficiary This is the person or entity (school, foundation, etc.) that will receive the benefits of the insured’s policy at their death.
Insurance Company the legal business permitted to issue a life insurance policy.
Premium the periodic charge for the insurance policy. Can be anywhere from one lump sum to years of monthly payments.
Coverage the terms of the policy as agreed to between purchaser and insurance company.
Permanent Policy life insurance that remains in force until insured dies, as long as the premiums are paid as agreed. (Usually for 10 years, 20 years or until age 65) This type of policy may also be called limited pay insurance.
Term Policy a life insurance policy issued for a definite number of years to provide payment for a mortgage, etc. At end of that time period, the policy is cancelled.
Endowment Policy A policy issued for the purpose of providing a lump sum or periodic payments to a beneficiary.
Final Expense Insurance a policy set up to pay for the funeral expenses when a person dies. In many cases the insured signs up with a funeral home for a pre-funded policy. Also call a pre-need policy.
Group Life Insurance life insurance provided to members of a group without regard to the usual health status questions. There is often a provision for a member who leaves the group to continue with the life insurance coverage.
Whole Life Policy This is an insurance policy in which the premiums are paid for the whole life of the insured. This policy has a guaranteed cash value that can be borrowed.
Modified Whole Life Policy an insurance policy in which the premiums start artificially low and then are raised after an agreed upon time limit.
Single Premium Whole Life Policy a policy featuring a single lump sum payment at the time the policy is issued.
Joint Life This is a policy insuring two or more persons. The payments are payable at the first death of those insured.
Rider special provisions added to a standard life insurance policy.
Double Indemnity a rider to a life insurance policy that provides for payment at twice the face value of the policy in event of an accidental death.
Insurability the various factors about the proposed insured that insurance companies will risk. Basic health conditions, lifestyle, family, substance use, etc. are all factors to be considered. These form the basis for the terms and premium of a policy.
Universal Life Coverage A new style policy that features death benefits, a flexible premium, and a cash account which can add to the face value of the policy.

While this list compiles the most common terms, there are others of interest. Check with your insurance provider for more information.