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Cemap1 unit 1 and 2 > 11. Life Assurance > Flashcards

11. Life Assurance Flashcards

1
Q

Term Assurance

A

Protection for a limited period with no element of investment

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2
Q

Sum assured

A

Amount paid out under terms of the policy

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3
Q

Life Assured

A

The person whose life is covered by the policy

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4
Q

Policyholder

A

Person who owns the policy and pays the premiums

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5
Q

Term

A

The period for which cover is provided under the policy

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6
Q

Surrender Value

A

Amount payable if policy holder cancels

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7
Q

Level term

A

Cover remains constant throughout term

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8
Q

Decreasing term

A

Level of cover reduces but aims to be equal to the outstanding debt

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9
Q

Gift inter vivos cover

A

Gifts made during a persons lifetime

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10
Q

Convertible term assurance

A

convert policy to a whole of life or an endowment

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11
Q

Increasing and renewable term assurance

A

sum assured increases every year by an amount or percentage

take into account inflation

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12
Q

Family income benefit

A

Pays family a tax free wage for a set amount of time

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13
Q

Pension term assurance

A

Assurance people could set up during a personal or stakeholder pension plan .

Highest policies with tax relief

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14
Q

Whole of life assurance

A

Pays at death

covers whole life

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15
Q

Joint Life second death policies

A

cover second person who dies

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16
Q

Whole life non-profit

A

fixed level of life assurance and fixed payment

17
Q

Whole life with profits

A

Fixed minimum level of cover

bonuses added to reflect investment profits

18
Q

Whole life low cost

A

Promise of level of cover
(with profits policy )
decreasing term

19
Q

whole life unit linked

A

Units issued to the planholder

a minimum level of cover

20
Q

Whole life unitised with profits

A

units issued with guarantee that unit prices will either never fall below and will increase by

21
Q

Flexible whole life

A
  • Mix of life cover and investment
  • Unit linked
  • Max,Min and balanced cover
22
Q

Universal whole life assurance

A 
whole life with added benefits 
income protection
medical cover
disability
wavier premiums
23
Q

Wavier of Premium

A

A provision which allows holder to suspend paying premiums if unable to work due to sickness

24
Q

Endowment policies

A

Combine life assurance and savings

25
Q

Non profit endowment

A

Fixed sum until maturity

26
Q

Full with profits endowment

A

Fixed sum and premiums
Higher cost but gets bonuses

revisionary bonus - bonus added each year

Terminal bonus - bonus added at maturity

27
Q

Low cost with profits endowments

A

with profits

decreasing term assurance

28
Q

Unit linked endowments

A

Premium used to buy units

fixed benefit on death

29
Q

Unitised with profits endowments

A

with profits and units linked

Cemap1 unit 1 and 2 (25 decks)

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