How to read my Life Insurance policy

Understanding any contract that contains a lot of industry-specific jargon can be tricky for the everyday person. When it comes to a life insurance policy , understanding what you're covered for, what the specific benefits and payments are, and what the insurance company is and isn't committing to is very important. This will ensure you and your loved ones won't lose out because of a misunderstanding. For example, sometimes a policy only covers you for specific kinds of death, like an accident, and not suicide.

We know that not everyone understands all the terms used in their life policy. That's why we're removing as much confusion as possible to help you choose and understand your life insurance better.

Life insurance is basically a contract between you and your insurance provider. Sometimes the owner of the policy chooses to cover someone else's life. That person is called the insured. The beneficiary is the person (or people) who receive a payout when the policy is claimed from. Ultimately, it's the owner of the policy who should understand exactly what they're signing for.

Let's break down some of the life insurance jargon you need to know to make sense of your policy.

Help! What does this life insurance policy actually say?