Are you a veterinarian looking for information on life insurance? The first question you may have is what really is life insurance for veterinarians? The basic definition of life insurance states that it is a legal contract that pays a benefit upon the death of the insured. While that definition is to the point, figuring out whether life insurance is right for you can be more complicated or confusing than that. Now let’s first discuss these terms and what they mean in an illustration.
Life Insurance Basics
The best way to better understand whether life insurance can benefit you is to learn the basics of life insurance and some key terms:
The insured
The policy owner
The beneficiary
The Insured
The insured is the proper term for the being whose life is covered under the policy.
Policy Owner
The policy owner is the person or entity that owns an insurance policy and has the right to exercise all privileges under the contract of insurance.
Beneficiary
Finally, the beneficiary is the person or financial entity (for instance, a trust) named in a life insurance policy as the recipient of policy proceeds in the event of the insured’s death.
Four other essential insurance terms that may be unfamiliar to you are
Underwriting
In force
Premium
Death benefit
Underwriting
Underwriting is guidelines used to determine the insured’s eligibility for coverage, how much coverage is available, and what it will cost. It is prepared by a licensed professional called an underwriter. Underwriters review financials, medical history, and occupational duties.
“In force”
The term “in force” indicates that a life insurance policy is active. It means the application process is over, and your policy would now pay the death benefit if something were to happen to you.
What will you pay, how will you benefit?
The premium refers to the cost. It is the periodic payment required to keep an insurance policy in force. The death benefit is the amount of money payable to the beneficiary in the event of the insured’s death.
While in the application process, you may be presented with different policy designs. The designs can vary based upon unique factors and circumstances in each individual case and should be thoroughly discussed with your insurance provider throughout the application process.
Insurance riders
The term riders refer to amendments that expand or restrict a policy’s benefits. Selecting or forgoing riders can affect the cost of the policy. Let’s examine what one of these riders, known as an accelerated death benefit rider, means and what they allow us to do.
Accelerated death benefit rider.
This rider enables the insured to receive a specific percentage of the death benefit before death, should they be diagnosed with a chronic or terminal illness.
Waiver of premium and conversion privilege.
Waiver of premium refers to a rider or provision included in most life insurance policies exempting the insured from paying premiums after they’ve been disabled for a specified period, usually six months.
Conversion privilege.
Conversion privilege guarantees the insured’s right to convert the policy to a permanent policy at the same insurability rating within a specified time limit.
Life insurance for veterinarians will protect what matters most
Here at TPVS, life insurance for veterinarians is what we do. To learn more about how we can meet your specific needs, sign up here to request a free quote. We have helped thousands of veterinarians across the country with their insurance needs over the course of thirty years.
Disclaimer
This post offers general information that is NOT a substitute for professional advice regarding your insurance situation. This blog post was created and is owned by Total Planning Veterinary Services. Do not copy or use this post unless you have the written consent of Total Planning Veterinary Services.
