Insurance can feel overwhelming — but it doesn’t have to. At Canopyra, we’re committed to making smart insurance planning simple, accessible, and transparent. That starts with understanding the key terms you’ll see across life insurance, critical illness, living benefits, and more.
Use this glossary to clarify unfamiliar concepts and make more informed decisions about personalized insurance plans, family protection, and your overall financial security.
The person (or people) you name in your insurance policy to receive the benefit when you pass away. Beneficiaries can include family members, friends, or organizations. You can change your beneficiary designation at any time.
A savings component built into permanent life insurance policies (like whole life or universal life). It grows over time on a tax-deferred basis and can be borrowed against or withdrawn.
A type of living benefits insurance that provides a tax-free lump sum if you’re diagnosed with a covered serious illness, such as cancer, heart attack, or stroke. It offers financial flexibility to support your recovery.
The amount of money your insurance provider pays to your beneficiary when you pass away. This is the core function of most life insurance plans and is generally tax-free.
A living benefits product that provides monthly income if you’re unable to work due to illness or injury. It protects your ability to meet financial obligations when your regular income stops.
Specific conditions or situations not covered by your insurance policy. Common exclusions may include certain pre-existing conditions or high-risk activities.
Coverage provided through an employer or organization, typically at a lower cost. It may offer basic life or disability insurance but often lacks customization or portability if you change jobs.
Insurance that provides financial support while you’re still alive, often due to illness or disability. This includes disability insurance, critical illness insurance, and long-term care insurance.
The individual who owns the insurance policy and is responsible for paying the premiums. The policyholder may or may not be the insured person.
The amount you pay for your insurance coverage. Premiums can be paid monthly, quarterly, or annually. Your premium is determined by factors like age, health, lifestyle, and the type of coverage selected.
An add-on to your insurance policy that provides extra benefits or coverage. For example, a waiver of premium rider or a child term rider. Riders allow for personalized insurance plans that suit your unique needs.
A life insurance solution that provides coverage for a specific period (e.g., 10, 20, or 30 years). It’s typically the most affordable life insurance option, offering a high benefit for a lower premium.
The process an insurance company uses to evaluate your risk and determine your eligibility and premium. It often involves a review of your health, medical history, lifestyle, and income.
A flexible life insurance policy that combines coverage with a tax-advantaged investment component. It allows for adjustable premiums and death benefits as your needs change.
A permanent life insurance solution that provides coverage for your entire life. It includes a guaranteed death benefit and builds cash value over time.
If you’re still unsure about any of these terms or have more specific questions related to the mortgage process, don’t hesitate to reach out. Our team at Canopyra Strategies is here to simplify the home financing process and help you every step of the way.
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