"Your Personal Insurance Broker"

Gerczak Insurance Agency, Inc. | 901 A Regester Parkway Richmond VA 23226 US | +1.8774372925


What is Life Insurance Exactly?

Merriam-Webster DictionaryLife Insurance:

:  "insurance providing for payment of a stipulated sum to a designated beneficiary upon death of the insured"

While that definition is true, it does not even come close to explaining the types, considerations, and functions of life insurance.  Generally speaking, life insurance comes in two forms, Term, and Permanent, with a variety of options within each.


For example, most types of life insurance policies, whether Term or Permanent, have options to include "riders" to the policy.  A rider is a provision of the insurance policy that is purchased separately from the base policy and provides additional benefits at additional cost.  Riders can help policy owners create a policy that meet their specific needs.  Examples of common riders are:

  • guaranteed insurability
  • waiver of premium
  • disability income
  • term conversion to permanent
  • accelerated death benefit
  • critical illness
  • child protection
  • return of premium
  • accidental death

Each policy type contains clauses which establish the rules you and your insurance company must follow along with exclusions, limitations, and/or waivers.  Common life insurance exclusions are, Suicide, Dangerous activity, Aviation, and Act of war.