Extended Coverage
A clause added to an insurance policy that provides additional coverage for risks not covered in a basic policy.

No-Fault
Auto insurance coverage which pays for each driver’s own injuries, despite who was responsible for the accident. No-fault coverage varies with each state.

Auto Insurance Premium
The price of auto insurance coverage based on the frequency and cost of potential accidents, thefts and other losses. Prices vary between companies.

Endowment Insurance
A form of life insurance payable to the insured if living at the end of the endowment period or to a beneficiary if the insured dies before the endowment date.

Universal Life Insurance
A flexible premium policy that combines protection against premature death with a cash value account that earns a money market rate of interest. Death benefits can be altered during the life of the policy within limits, generally subject to a medical examination. Once funds accumulate in the cash value account, the premium can be paid at any time but the policy will lapse if there isn’t enough money to cover annual mortality charges and administrative costs.

Credit Life Insurance
Life insurance coverage on a borrower designed to repay the balance of a loan if the borrower dies before the loan is paid off. It can also be offered as an option for credit cards and auto loans.

Joint Life Policy
Pays the insurance when the first of two or more covered persons die.

Umbrella Liability Insurance
A policy that "floats" above your other coverage. You must carry a certain amount of underlying liability coverage before you may buy an umbrella policy.

Whole Life Insurance
Cash value life insurance which combines protection against premature death with a savings account. Premiums are at fixed rates and guaranteed and remain the same throughout the life of the policy.

Auto Replacement Coverage
A supplemental auto insurance coverage that guarantees your car will be completely repaired or replaced, even if the costs exceed its depreciated value.