Nc Life Insurance Terms

Front 1

Accidental Death Benefit (Multiple Indemnity)

Back 1

Pays an additional sum, termed the principal sum, to the beneficiary if the insured dies due to and accident. The amount paid is a multiple of the policy face amount such as double or triple.

Front 2

Accidental Death and Dismemberment (AD&D)

Back 2

May be added to a life insurance policy. Pays benefits for dismemberment and accidental death. Pays a principal sum for loss of both hands, both arms, both legs, or loss of vision in both eyes.

Front 3

Guaranteed Insurability (future increase option)

Back 3

Permits the policy owner to buy additional permanent life insurance coverage at specific points in time in the future (i.e. marriage, births, etc.) without requiring the insured to provide proof of insurability.

Front 4

Cost of Living Rider

Back 4

Allows the policy face amount to be adjusted to account for inflation based on the consumer price index.

Front 5

Return of Premium

Back 5

Rider pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy.

Front 6

Term Rider

Back 6

Adds term coverage to an existing life insurance policy.

Front 7

Annuity Rider

Back 7

Can be added onto a life insurance policy. Annuities protect against the chance of depleting income for a prolonged life.