Ins 3 Flashcards
Insureds age at time policy is issued or renewed
Attained age
Policy’s Savings element or living benefit
Cash value
Amount of benefit stated in life ins policy
Face amount
Withheld or postponed until a specified time or event in future
Deferred
Cash value of whole life policy reaches contractual face amount
Endow
Premium that doesn’t change throughout the life of a policy
Level premium
Converting net worth to a cash flow
Liquidation of estate
Benefits in a life ins policy that the policy owner cannot lose even if policy is surrendered or lapses
Nonfortfeiture values
In life policies time when the face value is paid out
Policy maturity
Financial instruments that may trade for value
Stocks bonds options
Securities
Three basic types of term coverage based on how the face amount/death benefit changes during policy term
Level
Decreasing
Increasing
Regarding length of coverage all life ins policies fall into two categories:
Temporary and permanent protection
it only provides coverage for a specific period of time
Aka pure life insurance
Term insurance
Provide greatest amount of coverage for lowest premium compared to any other form of protection
Usuall maximum age not covered or cannot be renewed
Term insurance
Regardless Of type of term ins
Premium is level throughout term of policy