Agent – A representative usually representing one company. Agents have more limited product lines depending on the provider but generally provide better service than brokers.
Broker – A representative representing multiple companies. Brokers generally will have more options than an agent would and therefore may have low cost products.
Face Amount – The Death Benefit of a policy
Guaranteed Issue Period – Three months before your 65th birthday to three months after your 65th birthday. This gives you a one time window to get any medical plan with NO health questions.
MIB – Medical Information Bureau is documented history of your prescriptions and/or health claims.
Non-Qualified – Not tax sheltered.
Qualified – Tax sheltered.
RMD – Required Minimum Distributions start at age 70.5 and are required for anyone with tax-sheltered money such as IRA’s or 401K’s. This is a way for the government to collect on what has previously been untaxed.
Step Therapy – A process that insurers will require a patient to go through to provide the lowest cost care. This helps cut costs and only gives major treatments to those who have gone through every other option.
Tax-Deferred – An account that accumulates pre-tax. These accounts grow faster than others due to being able to grow on pre-tax money. Taxes will be paid once the money is withdrawn. In order to prevent being penalized you must be 59.5 before withdrawing.