A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Term Life InsuranceLife coverage that lasts a set number of years and pays a benefit only if you die during that term.
- Cash ValueThe savings portion of a permanent life policy that grows over time and can be borrowed against or withdrawn.
- Death BenefitThe lump sum an insurer pays your beneficiaries when you die, as named in your life insurance policy.
- BeneficiaryA person or entity you choose to receive assets from a will, trust, account, or insurance policy.
- PremiumThe regular payment you make to keep an insurance policy active, usually billed monthly, quarterly, or yearly.
- Net WorthWhat you own minus what you owe — the clearest scorecard of your financial progress.
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Plain-English education — not personalized legal, tax, or investment advice.