GBA - MOD 1 Flashcards
Death Benefits
Payable to
a beneficiary upon death
Basic Life insurance
Most prevalent group benefit
Term insurance
Payable only if the insured dies during a limited
period
Whole life insurance
Has level premiums, provides coverage for
life and has cash value
Active, permanent employees
Group life eligibility requirements
Waiting period
Period of time an insured must wait before
coverage comes into effect
Evidence of insurability
A medical questionnaire required to approve or decline an application for insurance
Minimum participation rate
The lowest number of individuals enrolled in the
plan expressed as a % of those eligible
Earnings schedule
Life coverage based on multiple of annual salary
Flat schedule of benefits
All in the class receive the same amount of insurance
Combination schedule of benefits
Providing life insurance based on combining two
different methods
Adverse selection
Selecting the benefits most likely used at the
lowest cost
Classes
Specific groups of individuals for insurance
purposes
Non‐evidence maximum (NEM)
Maximum amount of insurance provided
on a life without medical
Overall maximum (OM)
Maximum amount of life insurance the insurer
will issue on one life
