Knowing these life insurance terms can help you choose the right policy to meet your needs.

Life insurance can be one of the most confusing policies to invest in since talking about what is going to happen when you are gone can be very difficult. Knowing what specific life insurance terms mean can help to ensure that you can invest in the right policy. Keep this life insurance guide in mind to help find the right policy.

1. Whole life insurance - a permanent life insurance policy that will provide coverage for your entire life, no matter if you pass away this week or live to be 100. The policy can and accumulate a cash value that you can borrow against while the policy is active.
2. Term life insurance - a temporary life insurance policy that will provide coverage for a specific amount of time, such as 10 or 30 years. Most term life policies have the ability to convert to a whole life policy.
3. Death benefit - the payout that will be issued to your dependents after you pass away. Typically, the more dependents you have, the greater death benefit amount you will need.
4. Premium - the premium is the amount that you will pay each month or yearly for your insurance coverage. The amount of your premium will typically be based off of the amount of coverage you invest in.
5. Underwriting - the process that your insurer will go through when deciding if you are worth the risk. Your insurer will look at various factors, including your medical history and age to decide if you are too risky.
6. Beneficiary - this is the person or people who will receive the death benefit of your life insurance policy. You can also name contingent beneficiaries who will receive the payout if your original beneficiary is not alive after you pass away.

For help finding the right life insurance policy that will best protect your loved ones, contact Bell Black Insurance in Rexburg, Idaho.