Chapter 23 Flashcards
Insurance protection against loss of income due to the death of the insured
Life insurance
A legal contract issued by an insurance company
Policy
The amount of money a policyholder pays for an insurance policy
Premium
Persons who are named in a will to receive a deceased persons property
Beneficiary
The amount of money paid to the beneficiary of a life insurance policy upon the policyholders death
Face amount
The amount of money the policyholder would receive the policy is surrendered before his or her death or when it matures
Cash value
Type of life insurance that covers the life of the policy holder for a specified term or period of time. What is the term expires, the person is no longer insured
Term life insurance
A top of life insurance in which the premium is based on the person’s age when the policy is purchased and remains the same throughout his or her life
Whole life insurance
Flexible insurance that allows the insured to alter the coverage as the need for protection in the ability to pay for a change
Adjustable lifeinsurance
I top of insurance in which of the premium goes towards protection and the rest goes into savings that are invested in equity product such a Stocks
variable Life insurance
Health insurance so generally pays for hospitalization medications board room and nursing services and sometimes x-rays and lab test
Basic medical insurance
Policy that begins paying when the basic insurance coverage stops
Major medical insurance
Health insurance that protects a person or family from loss of income due to a disabling illness or injury
Disability income insurance
Insurance is designed to help people protect the assets in the event of a prolonged illness or convalesce
Long-term care insurance
Organization that offers lower cost healthcare by providing a group discount if this participating doctors are used
Preferred provider organization
