Michael A. Milazzo, CLU, ChFC

Registered Principal

The Meridian Financial Company

90 Lawrence Avenue, Suite 4, Smithtown, NY 11787

Phone:  631-979-4223

Fax: 631-656-8199 

Email: meridian@ae.cadaretgrant.com

Website: www.merfinco.com

July/August 2018

The ABCs of Insurance

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Life insurance terminology is often difficult to understand. Here’s an explanation for some puzzling insurance phrases so that you’ll know what they mean.

How an insurance company examines risk to decide whether or not to approve applicants to buy insurance.

Evidence of insurability
This is generally proof of your health, although some insurers may also check your finances and employment to determine insurability.

Standard risk
This is underwriting — or rating — which determines normal risk. A standard risk will pay more for insurance than the lowest risks, but less than substandard risks, who are the highest risks.

No underwriting is required
You hear this phrase when an actor pitches a term life insurance policy on television. In reality, individual term insurance is typically for a low amount and doesn’t fully pay a death benefit for the first two or so years.

Group insurance
This is typically a nominal amount of coverage underwritten on a large amount of people. This is usually a benefit offered by employers and associations.

The person or entity that receives the insurance policy’s death benefit. An entity could be a charity or even a business.

Most whole life and some term life policies offer riders, which insurers also call endorsements. You can consider them addendums that, sometimes for an extra fee, may add to your benefit or suspend premiums, among other options.

When policy owners miss a payment, an insurance policy could lapse, or be cancelled. There are riders to protect against this possibility, too.

Whole life insurance policies often pay a predetermined rate of interest on paid premiums. The insurer can use earnings and expense savings to reduce your premiums, increase your benefit and pay periodic dividends.

These are people, licensed by the states in which they sell insurance, you should contact to learn more about individual life insurance.


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Michael A. Milazzo is a Registered Representative of and offers securities through Cadaret, Grant & Co, Inc, a member of FINRA and SIPC. The Meridian Financial Company and Cadaret, Grant are separate entities. I am registered to sell Securities in the following States: NY, PA, NC, FL, CO, ID.
The Meridian Financial Company and LTM Client Marketing, Inc. are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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