Glossary of Terms:

Face Amount - The amount of life insurance coverage under a life insurance policy

Load Fees - An additional cost built into most insurance policies to cover losses which are higher than anticipated for the company arising from insuring a person who is prone to a form of risk

Protection Need - The amount of life insurance needed to protect your beneficiaries in the event of your death

Premium - The amount of money paid as either a single payment or periodic payments to maintain insurance coverage

Cash Value - The amount of money – before adjustment for factors such as policy loans or late premiums – that the policyowner will receive if s/he allows the policy to lapse or cancels the coverage and surrenders the policy to the insurance company

Compound Interest - The result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest

Death Benefit - The amount a beneficiary would be paid if the insured person dies while the life insurance policy is in effect

Net Amount at Risk - The difference between a policy’s face value and cash value, representing the amount to be covered directly by Bluestone at the time of death

Surrender Fee - An amount deducted from the policy value when a person surrenders a life insurance policy and receives the cash value within certain periods specified in the policy

Overfunding - Paying more than the cost of insurance on a universal life policy in order to build cash value within that policy

Human Life Value - The amount of insurance needed to maintain existing lifestyle