Beneficiary: A person other than a participant who may become eligible to receive, or is receiving, benefits under an insurance policy.

Cash surrender value: The amount payable to an insured who surrenders cash value life insurance, which terminates all insurance benefits.

Convertible term life insurance: A plan that permits you to exchange the term life insurance policy for a permanent one at some point.

Free look period: Under the laws of some states, a period (typically at least 10 days) during which time you may cancel the policy without penalty.

Insurable interest: A requirement that if you want to buy a life insurance policy on someone else's life, you must have an interest in that person remaining alive or expect emotional or financial loss from that person's death.

No-load policy: A type of policy that some insurers sell directly to consumers without having to pay commissions to agents and brokers.

Permanent (cash value) life insurance: A type of life insurance that combines a death benefit with a cash value component that builds over time; offers lifetime protection.

Risk factors: Factors that the insurance company takes into consideration when calculating your premium for permanent or term life insurance; these include your age, your health, whether you use tobacco, your family health history, and the type and amount of life insurance you're buying.

Term life insurance: A type of life insurance that provides coverage for a specified period of time—generally one, 10, 20, or 30 years, or until the insured reaches 65 or 70 years of age.

Universal life insurance: A type of permanent life insurance in which the cash value varies with the purchaser’s payments and the insurer’s investment returns.

Variable life insurance: A type of permanent life insurance in which the cash value fluctuates depending on the investments purchased by the purchaser for his or her portfolio.

Whole life insurance: A type of permanent life insurance. Whole, universal, and variable life insurance each has their own provisions, but all cover you for the remainder of your life.