The words, explained plainly
No jargon left unexplained. These are the terms you'll meet across VeraLife.ai, defined in plain words.
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Join the waitlistAnnuity
A contract that turns a sum of money into a stream of income, often used to make savings last through retirement.
Beneficiary
The person or people named to receive money from a policy, account or estate.
Buy-Sell Agreement
A plan, often funded by insurance, that sets out what happens to a business owner's share if they die or leave.
Cash Value
The savings portion inside certain life insurance policies that grows over time and can be borrowed against.
Compounding
Growth on growth: earnings that themselves start earning, so money builds faster the longer it sits.
Death Benefit
The amount a life insurance policy pays to beneficiaries when the insured person dies.
Disability Income Insurance
Insurance that replaces part of your income if you cannot work due to illness or injury.
Estate
Everything a person owns, passed on according to their will, trust or state law when they die.
Estate Tax
A tax that can apply to larger estates when they pass to heirs.
Executive Bonus Plan
A way a business pays for a key employee's life insurance as a bonus, owned by the employee.
Fiduciary
A duty to act only in another person's best interest, not your own.
Gap (Protection Gap)
An area of your financial life, like income or long-term care, left exposed with no plan in place.
Grantor
The person who creates and funds a trust.
Guaranteed Issue
Coverage offered without a medical exam, usually with lower limits.
Illustration
A projection showing how a policy's values might grow over time; not a guarantee.
Infinite Banking
A strategy of using a cash-value policy as your own source of financing, borrowing against it instead of a bank.
Irrevocable Trust
A trust that, once created, generally cannot be changed or undone by the person who set it up.
Key Person Insurance
Life or disability insurance a business holds on an owner or essential employee, to cover the cost of losing them.
Legacy
What you pass on to the next generation or cause you care about, planned rather than left to chance.
Liquidity
How quickly and easily money can be turned into cash without a loss.
Living Trust
A trust created during your lifetime that can hold assets and help them pass on without probate.
Long-Term Care Insurance
Insurance that helps pay for care if you can no longer manage daily activities on your own.
Permanent Life Insurance
Life insurance meant to last your whole life, usually building cash value, unlike term insurance.
Policy Loan
Money borrowed against a life insurance policy's cash value, using the policy itself as collateral.
Probate
The court process of settling an estate when someone dies, which a trust can often avoid.
Revocable Trust
A trust the creator can change or cancel during their lifetime.
Rider
An add-on to an insurance policy that changes or extends its coverage.
Survivorship Policy
A life insurance policy covering two people that pays out after the second one dies, often used in estate planning.
Tax-Advantaged
Growing or passing on money in a way that reduces or defers tax, within the rules.
Term Life Insurance
Life insurance that covers a set number of years and has no cash value.
Trust
A legal arrangement that holds assets for beneficiaries, managed by a trustee under rules the creator sets.
Trustee
The person or institution responsible for managing a trust's assets for its beneficiaries.
Underwriting
The process an insurer uses to assess risk and decide the terms of a policy.
Universal Life Insurance
A flexible type of permanent life insurance where premiums and cash value can adjust within limits.
Vesting
The point at which you have a non-forfeitable right to a benefit, such as employer retirement contributions.
Wealth Strategy Score
VeraLife.ai's free score, out of 100, showing the three biggest gaps in your financial plan.
Whole Life Insurance
A type of permanent life insurance with level premiums and guaranteed cash value growth.
Will
A legal document stating how you want your property distributed after death.