Beneficiary
The recipient of the benefit of a life insurance policy, chosen by the insured. It can be a family member, for example, or in the case of key man life insurance, it can be the business.

Benefit
The amount of money that is paid out from a life insurance policy. The benefit is often a multiple of the insured's salary, but it can also be a set amount.

Broker
A life insurance company representative who seeks out prices and types of policies for businesses.

Cafeteria Plan
A system where there is a menu of benefits employees can choose from for participation. Group life insurance is many times part of a cafeteria plan for small businesses.

Group Life Insurance
Insurance bought by an employer and offered to employees. The business takes on the role of policy holder, and the employees are the insured.

Insured
The person whose life is insured by the life insurance policy. With a group life insurance policy, the employee will be the insured.

Key Man Life
An insurance policy taken out on leaders of a business. If any of them die, the beneficiary of the policy will be the business, and the benefit is intended to keep the business up and running without the key person.

Permanent Life Insurance
A life insurance policy that lasts until the death of the insured, regardless of whether or not they still work for the company. This type of policy also accrues cash value that can be used for retirement or other expenses of the insured. This type of policy is more expensive than term life insurance and is usually not offered in small businesses.

Policy Holder
The owner of the policy. With group life insurance, the business would be the policy holder, and the participating employees would be the insured.

Premium
The cost of a group life insurance policy. Employees' risk factors, type of business, and location of business all are considerations when the insurance company sets the premium.

Riders
Provisions that can be added on to a life insurance policy, such as coverage of additional family members, coverage of serious accidents, and the ability for employees to continue with coverage after they leave the company.

Risk Factor
What the premium of a group life insurance is based on. The risk factor is the likeliness that death will occur to any of the insured. The demographics of employees and type of business will determine a business's risk factor.

Term
A life insurance policy that is offered for a specific amount of time, rather than continuously over a person’s lifetime. With a basic group life insurance policy, it will last while you are working for the company and will end when you leave the company.